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Is an Extended Auto Warranty Worth The Money

Is an Extended Auto Warranty Worth The Money Image

When buying a new car, one of the decisions consumers have to make is what type of warranty to secure for the new purchase. On the one hand, the dealer will likely offer a basic warranty that is either included as part of the purchase price or comes with a small price tag. There is also usually an extended auto warranty that offers a broader range of benefits, but costs more than the basic plan. The question consumers have to determine is whether or not the extended auto warranty is really worth the extra expense.

One way to decide if that extended auto warranty is worth the money is to take the time to compare the terms and conditions with those found in the basic warranty plan. Typically, all the benefits found in the basic plan are also part of the extended plan, but with additional benefits in terms of duration and possibly the scope of coverage. You will also find some benefits in the extended plan that are not provided in the basic one.

In the end, you must determine if those additional benefits are relevant to your situation. Think in terms of how you plan on using the car, where you will go, and how dependent you will be on the vehicle in terms of getting to work and other essential locations. If the basic warranty provides ample protection in your particular circumstances, then the added expense of the extended plan is not likely to be worth it. On the other hand, if the vehicle is used daily and will serve as your primary mode of transportation, paying a little more and going for the extended auto warranty may be your best option.

Michael Barclay

published: 10/08/2011 11:00:01

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