The Advantages and Disadvantages of paying your car warranty by Direct Debit
When buying a car, getting a warranty alongside it may seem like just another expense, but itís an important one, for which you will feel the benefits should something go wrong. A warranty will grant you the financial assistance you might need should your car suffer a breakdown or some significant damage early on in its life. Rather than settling for paying for professional repairs, your Car Warranty - an assurance of quality and understanding from the buyer - could prove a real financial lifeline.
Before settling on a warranty, it is important to research providers, ensure that your vehicle has been serviced and know the age and condition of your car. Good warranties could offer benefits of European breakdown cover, car hire or the freedom to choose your own garage, so it is worth shopping around.
Once youíve done the research and chosen the warranty policy, all thatís left to do is organise a payment plan. Like any other financial policy, a car warranty is a bill that needs paying, and your payment plan is entirely dependent on your personal situation. Itís worth putting some thought into whatís best to suit your income. One payment option which, these days, is a popular method for many bills, is direct debit. Direct debit is simply the process of a third party transferring money on a regular basis, from your account. But what are the pros and cons?
Advantages of paying by direct debit
- Stick to a routine - a direct debit is something you can predict and plan for, making budgeting each month much easier
- Take control - you can choose to cancel your direct debit if your warranty plan is no longer needed. Just be sure of any outstanding payments left to make.
- Feel at ease - You donít need to remember to make the payment each month as itís covered for you
- Spread the cost - Paying for your warranty outright could prove very expensive, so a direct debit will help manage the instalments over time
- Keep a record - direct debits are automatically recorded in your bank statements, so can be easily referred to when needed
Disadvantages of paying by direct debit
- Ensure thereís enough - if there are automatic payments coming out of your account then there must be sufficient funds to cover them - otherwise you may find yourself overdrawn.
- Loss of control - You are giving control of warranty payments to the third party, but any mistakes on their part could have negative effects on your account.
- Too much trust - Direct debits often lend themselves to an element of trust and mistakes are easily missed - be sure to regularly check payments
- Be aware of change - If you decide to close your account or credit card linked to the warranty payment and donít change the debit details, you could be faced with late payment charges.
So those are the steps; youíre the research, the choice and the payment plan away from having warranty cover. Purchase your car warranty now.
published: 11/03/2014 12:33:12