Domestic Appliance Extended Warranties

Pros And Cons Of Extended Automobile Warranties

Cars are not cheap. Duh. In fact, the average new car now costs over $25, 000. As my parents would say, "We didn't pay that much for our first house!" It is no wonder that more and more people are purchasing extended warranties to protect their automobile investments.

Extended warranties have been referred to as 'health insurance for the car'. In a manner of speaking, this is a good comparison. As with health insurance, you pay your money up front to avoid paying even more money in the future. Since, in my experience, there is no such thing as a cheap car repair it is a good idea to have at least most of the components and labor covered by some sort of insurance.

I was surprised to learn that there are some cars that are not eligible for extended warranties. The Land Rover, Jaguars, and other high performance vehicles are difficult - if not impossible - to get covered under a warranty. The reasoning, apparently, is that repairs on these vehicles are so expensive that nobody wants to cover them. My solution to this problem is simple - don't buy this type of car. Easy for me to say - can't afford one anyway.

Do you really need an extended warranty? Most cars come with a 3 year/30, 000 mile warranty. Many of us are not through paying for the car before this warranty has expired. Personally, I would rather finance the warranty right along with the rest of the car so that at least I don't have to worry about large car repair bills and the payment. With luck, the car will be paid off before you start getting hit with those big repairs.

There are three different types of extended warranties that are available for purchase. The first is the manufacturer's warranty. This product is advantageous because it is a factory-backed dealer repair network that can be used nationwide, so there is no haggling over repair price or components. The downside to this program is that it is the most expensive, and the dealer network in your area might be limited.

The second type of warranty is the dealer plan. The advantages of this type of plan are that they are less expensive, and you can purchase the plan and service the car from the same place. The disadvantage of this type of plan is that if they can not fix the car at their place, where do you take it?

The third type of warranty is the independent plan. The advantages of this type of warranty are lowest cost and most coverage choices - dealers, local repair shops. The disadvantage is that repair shop coverage might not be as promised.

As is often the case, you get what you pay for. Read the information carefully - what exactly does this plan cover - and don't let the dealer pressure you into purchasing the plan. They will let you return to purchase it at a later date - and why wouldn't they? Money is money, and better they pocket your hard-earned dollars later than never.

By Shawn MacDonald - I am the mother of three girls - ages 18, 20 and 22. Strange, seeing as I'm only 29! My 'day job' is a diner waitress, but I've been writing for 20 years. I've published colums (humor) and had a novel publ...

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