Justifying the Cost of a New Car Warranty
When buying a new vehicle, many dealers will offer a basic new Car Warranty that provides some protection for the vehicle at no additional cost. It is not unusual for more comprehensive warranty plans to also be available, usually for some type of fee. The question many buyers face is whether to make do with the basic warranty or invest a little money in the other plans. Here are some tips on how to decide which option is right for you.
First, compare the terms of the free new car warranty with the other plans. Identify which features or benefits are included in all the plans. From there, note what additional benefits are provided by the more expensive warranties, including enhancements or extensions to the basic coverage. This will make it much easier to focus on what you actually get for those additional costs.
Look closely at those additional benefits and determine if they are something that could be helpful in the future. The type of vehicle that you are buying, plus your intended usage of the vehicle, will make it easier to determine if those benefits are worth the expense. In some cases, it may be more cost-effective to put aside some money in an interest-bearing account and stick with the free warranty plan. At other times, going with the more comprehensive plan, even allowing for the additional cost, will be your best bet. Take your time in making the decision, and choose wisely. Going with the wrong plan means wasting money at the very least, and could also mean incurring a great deal of expense down the road.
Author: Michael Barclay
published: 29/03/2011 17:00:00