Buying a car is exciting. That’s a different story altogether; If you can keep it running without the usual repair bills… That’s where things get tricky. Welcome to the world of extended car warranties, also known as financial cushions that are effectively making a promise to save you from those costly surprises. Do they actually deliver or are they just another scheme to siphon money out of your wallet? Let’s see it based on real experiences. Click to learn.
The Sales Pitch vs. What Actually Happens
You’ve been there. As you’re currently finishing the car purchase, the salesperson starts talking about an extended warranty. “Covers major repairs,” they say. They assure you of ‘no surprise costs.’ It sounds like a no brainer until you really need to use it.
On many occasions, frustrated drivers have had a tough time with filing claims for accidents. Others find that their didn’t cover their issue at all. Other people find themselves working with endless paperwork or waiting 4 weeks with an approval. There are some warranties that flow along as anticipated, but many include such fine print that it requires a lawyer to farm a few cold ones in the morning.
The Details That Can Cost You
However, most people do not read their warranty contract line by line. And that’s where trouble starts. There are plans that only cover certain parts or have strict rules with regards to maintenance. Have you forgotten to keep an oil change? They may deny that is enough for your claim.
Another sticking point? Repair locations. Warranties may restrict the places at which you can take your car. If you break down where there’s no “approved” shop, you could be out of pocket.
The Good, The Bad, and The Frustrating
Some extended warranties are not a headache. However, some drivers have had thousands of dollars in repairs —the engine or transmission the most common —that have been covered with no problem. Companies who have signed the contracts and have solid reputations tend to make of these.
And every success story is often connected with someone who has been left feeling fuming. One of the biggest complaints? “Wear and tear” clauses. There are times when a driver will get their well worn battery and alternator replaced under the warranty, only to be treated to a part of broken A/C that is ‘normal aging’. When you were buying home insurance, were you planning to get a roofer? Imagine buying home insurance and being told your leaky roof isn’t covered because “roofs just leak sometimes.”
Should You Buy One?
So, is it worth it? That depends on your situation.
If you have just purchased the car, the manufacturer would already have covered you for years. If, however, that is the case, you may be wasting money on buying an extension. If you’re driving a used vehicle with an unknown history, then an extended warranty may prevent you from falling into a financial nightmare.
Others urge people to forgo the warranty in favor of setting money aside for repairs. In that case, if you don’t ever require extensive repairs, you maintain the cash. If something goes wrong, you won’t have to plead for a warranty company to take care of it.
The Bottom Line
Extended car warranties can be a lifesaving or a waste of money. What you’re paying for as precisely as possible. Read the contract. Ask tough questions. So never take for granted that all will be covered. The last thing you’d want is when your car breaks down is an expensive surprise.