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Extended Car and Truck Warranties

09-12-2019

You have likely spent weeks (if not months) searching for the car or truck that you want to buy. You have finally found your next ride, and you are sitting in the salesman’s office just about to sign on the dotted line when he brings up the subject of an “extended” warranty.

To paraphrase Shakespeare, “To buy or not to buy? That is the question!” It does sound good. You can get an extended warranty that will cover everything from bumper to bumper for six years or 100,000 miles. “That could save some money,” you think; but are you right? Will it really save you any money? You are going to pay for the extended warranty, or you are going to pay for repairs in the event that they are needed.

Paying for the extended warranty is a sure outlay, whereas paying for repairs is not a sure thing. There are a couple of questions that you should ask yourself before you opt for the extended warranty.

1. How long are you going to keep the car or truck? If you plan on driving a new vehicle every three or four years, the original warranty will probably be long enough.

2. Can you make repairs yourself? If you can make many minor repairs yourself, you likely do not need an extended warranty. The original warranty pretty much assures that the vehicle is in good working condition when you buy it, and if everything works when you buy the car, it will most likely continue to work at least until the original warranty expires.

However, if you do decide to opt for the extended warranty, here is a piece of money-saving advice. Don’t take the extended warranty the day you buy the vehicle. You will have a year to opt in, and if you wait eleven and a half months, you’ll get seven years of protection rather than six, because the policy goes into effect when you buy the policy and not when you buy the vehicle.

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