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RPM Auto Sales Espanol  RPM Espanol Friday, May 26, 2017
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RPM Auto Sales
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RPM Auto Sales
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RPM Auto Sales
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Extended Warranty

Do I need an extended warranty for my car?

To decide whether you need an extended warranty or not, you should look closely at your situation and your car. Here are some key questions you should ask yourself:

For how long are you going to keep your car after the original warranty expires? - You don't need an extended warranty if you have a new car and you are planning to trade it in before, or right after the original warranty expires. But if you want to keep your vehicle for a few more years - an extended warranty is worth considering.


Do you have any other warranty coverage? - You don't need duplicate coverage for your car. Find out what coverage you already have. For example, if you bought a used car from an authorized dealer under "Certified Pre-owned" program, you may already have some warranty coverage that comes with the car.


Are you prepared to handle any unexpected repairs? - If you don't know much about cars, if you don't have a good trusted mechanic, if you prefer to pay ahead for a sense of security and don't like unexpected expenses, a good extended warranty is what you need. When your car needs a repair, take it to a dealer or an authorized repair shop and show them your extended warranty contract - if the repair is covered, your extended warranty will take care of that.


How reliable is your car? - Research your car reliability history. Some cars are known for their reliability - Toyota Corolla and Honda Civic are two good examples. The more reliable your car is, the less likely it will have unexpected problems. For example, a friend of mine has spent only about 600 dollars over five years on his ten-years old Toyota Corolla for repairs other than regular maintenance. If your car is known for high reliability and you maintain it well, it's less likely that you will benefit from an extended warranty, although it's a fact that all cars break sometimes even the most reliable ones.


What options does your car have? - The more options, the more can go wrong. Cars become more and more complex these days and use more and more sophisticated electronics. Things like power windows, central locking, ABS, heated seats, immobilizer, traction control are on the list of available equipment of nearly any new car now. Almost every minivan now offers options like power sliding doors, dual air conditioning, tire pressure monitoring and DVD entertainment system. SUVs are also stuffed with things like four-wheel drive system, vehicle stability control, navigation system, etc.

Today's luxury cars are more like space ships with long list of high-tech gadgets. While it's good to have more options in your car, they significantly increase the average cost of repair. A simple thing like a faulty seat heater can cost you several hundred dollars to fix. The point is, the more features your car has, the more chances something will break, making more sense to have a good extended warranty coverage.


How expensive are parts for your car? - Parts (and labor) for some cars tend to be more expensive. Examples are: Volkswagen, Audi, Volvo, BMW, Lexus, Infiniti, Mercedes-Benz, Jaguar, Acura, Lincoln, Cadillac to name a few. Do some research on your particular model. Ask your mechanic, read reviews. Definitely consider a good extended warranty if you have this type of car.


However, you won't necessarily save money with an extended warranty. If your car won't have any problem during extended warranty coverage period, you'll lose money you paid for your coverage. I think it's more about peace of mind than saving money. You are paying for the sense of security, protecting yourself from unexpected repair expenses. Another benefit of having an extended warranty is that when your car has a problem you can take it to a dealer where usually you can expect better level of service than in a small independent garage. Also consider that some extended warranties provide additional benefits like towing, lost key/lockout, and car rental discounts.

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