All cars whether new or old require maintenance to run in prime condition and some may even develop problems over the years, requiring a thorough professional service. With repairs running into hundreds of dollars or even more, most car owners shudder when they realize that their car needs repairing. If you happen to buy a used car, the chances of having to bear the costs of a repair are quite high and an option that you can consider is purchasing an extended service warranty on your car. But do these extended warranties actually save you any money or are they a waste of money?
A lot of factors influence the repair bill that may come your way which also ultimately decides whether you should spend extra money on extended warranty on cars.
The most important, of course, is how old the car is. A new car is always covered by the manufacturer’s warranty for either a length of time or for certain number of miles. Moreover, a new car is also less likely to develop any problems in the beginning. However, if you are buying a used car, then the condition of the car should dictate your decision. It may even be worthwhile to have the car assessed independently before you arrive at any conclusion.
The model of the car is equally important as some makes are known to be more prone to engine trouble than others. For instance used BMW cars are unlikely to run up many repairs but you may not be so lucky with other makes and models. You should make a thorough search on your own regarding the life and performance of different cars. On the other hand, even routine maintenance BMW service can be quite expensive and an extended service contract can help you save a lot of money in the long run.
But there are some things to keep in mind before deciding to take or leave an extended warranty. Study the offer properly to understand what all is covered under it. Different service centers or even manufacturer’s provide warranty only under a certain set of circumstances. You can be in for a rude shock otherwise later on. Warranties may cover only breakdowns and may not replace worn out parts. Besides this, you may be required to pay for some parts like lights and tires and be expected to pay a certain amount from your own pocket as deductible. Then again different dealers may offer extended service contracts at various rates. This can be due to various terms and conditions and the extent of the services being offered.
Some people argue that it doesn’t make sense to pay for an extended service warranty as there is no surety that you are actually going to need it. Often, if you intend to replace your car after sometime, then the need for an expensive repair may never arise. Of course, you are going to need regular service like oil change and so on and a service contract that covers it would be really helpful. However, a careful analysis is a must before making a decision.
Brett Michael Williams discusses whether one should buy an extended service contract or not. While some people say it may not be essential for new or used BMW cars as they are unlikely to require repairs often, however, as car repairs and even a routine BMW service is expensive, many people recommend buying an extended service contract. For more information on BMW cars, Read Chapman BMW on camelback Blog