Automotive Advice

Should I purchase an extended warranty for my car? If so, what should I look for? The selection seems confusing and a little overwhelming.

Auto Advice Answer:
If you’re planning on driving your car beyond 50,000 miles or keeping it longer than four years, then you should seriously consider buying an extended warranty. Here’s why: Some of the high tech components of today’s cars and trucks can be very expensive to replace after the manufacturer’s warranty runs out. For example, a transmission replacement on some models can run more than $3,000 – well above the cost of an extended warranty that would cover that failure. The average air conditioner compressor replacement in Arizona costs more than $1,000 for the complete job. As time passes and mileage climbs, there are many other common repairs that can cost hundreds or thousands as well. All of these repairs can be covered by an extended warranty with a modest deductible of $100. It only makes sense to get this coverage if you are going to keep your car much beyond the factory warranty period.

There are many options and many companies that provide extended warranties. Some of the things to consider are which components are covered? Which are excluded? Does the warranty cover seals and gaskets? Some don’t. Does the warranty cover the cost of a rental car if your car is down for a few days? What about out-of-town breakdowns? Are there towing limitations? Also make sure that the extended warranty doesn’t limit your choice of who does the needed repairs. It’s your car, so it should be your choice who services and repairs it.