You know what can ruin your day? Well, lots of things but when your car breaks down, that will definitely do it. When this happens usually the first thing you do is make a phone call and cancel the activity you “were” headed to. Next, you have to figure out how to get your car to a repair facility and fixed. “How much is this going to cost this time,” you are likely going to think.
Peace of Mind
Let’s face it, owning a car when it’s “under warranty” makes life easier. No matter what the issue is, you can have your local factory repair facility (hopefully the dealer you bought the car from) take care of things. Generally, if something does need repairing, the factory warranty will cover it for you. Manufacturers know that this peace of mind is great for car owners because it mitigates the unknown – the unknown of an expensive, budget-busting repair bill. But how expensive are repairs these days? Are they more than extended warranty costs?
The AAA says the average American household spends $3,269 on car maintenance per year. Seems like a lot doesn’t it? Well, cars nowadays are not the simple machines they used to be. New vehicles are loaded with complex technology. Because of this, not only have the cost of repairs skyrocketed, so has the cost of just diagnosing the issue. The average cost to repair an air conditioning system for example is $835. Over the next five years repair costs are going to increase about 12% per year. That $835 air conditioner repair today could cost as much as $1,500 to repair just a few years from now.
Extend Your Car’s Warranty
The manufacturer’s factory warranty typically covers vehicles for a period of time that might be a shorter period than you own your vehicle. That’s when third party warranties come into play. As Central Avenue Chrysler of Yonkers, NY, a Chrysler, Dodge, Jeep, Ram dealer explains “Extended Warrantees” offer protection against mechanical and electrical failures after the manufacturer’s warranty runs out.
How They Work
Extended warranties are similar to the original warranty offered by the manufacturer. You can purchase a set number of miles or a set number of years, like 30,000 miles or 3 years. You are usually provided with a list of local repair shops that you can go to and the rest works similarly to how factory warranties work. The best part is that you won’t need to worry about what things will cost, or if the repair shop is overcharging you because everything is taken care of. That’s the great part of having an extended warranty.
Should You Buy One?
It is not uncommon for journalists to play down extended warranties. They claim that today’s cars rarely need service until they accumulate tons of miles and get pretty old. During this time, the manufacturer’s warranty will cover you just fine. Well, there is some truth to this but, if something does happen, an extended warranty might save your neck when the manufacturer’s warranty runs out. Here’s the bottom line: you don’t need an extended warranty but does it buy you peace of mind? If it does, then it’s worth what you pay for it. Being able to sleep at night is a nice feeling.
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