Warranties are important. They protect you financially in the event that something goes wrong with your purchase. But not all warranties are created equal. In fact, there are many reasons why you might want to think twice before purchasing a warranty from a car dealer. Let’s take a look at six of those reasons now.
Dealerships Overcharge for Warranties
Have you ever wondered why auto dealerships are so insistent that you purchase an extended warranty? After all, your standard warranty should cover any manufacturer defects, and if you take good care of your car, it should last for many years.
However, the truth is that extended warranties are one of the biggest sources of profit for auto dealerships. In most cases, the cost of repairs will be less than the price of the extended warranty, and the chances of something going wrong are relatively low. As a result, auto dealerships generally make a huge profit on extended warranties.
So, if you’re considering purchasing an extended warranty, be sure to do your research and shop around. You have more options, and if you really want an extended warranty, then you can consider a third-party warranty. Just be sure to check out what other people have to say from sources like CarChex reviews. You may find that you can get a better deal through a third-party company instead of choosing the warranty that the dealership is offering you.
The Fine Print is Usually Not in Your Favor
Chances are, if you’ve ever bought a car from a dealership, they’ve tried to sell you an extended warranty. And while it may seem like a good idea at the time, the reality is that these warranties are usually not in your favor.
Here’s why: first of all, most new cars already come with a manufacturer’s warranty that covers repairs for at least the first few years. So unless you’re buying a used car, an extended warranty is likely unnecessary.
Secondly, even if you are buying a used car, chances are good that any major problems will become apparent within the first few years of ownership. By the time an extended warranty expires, most cars are out of warranty and no longer covered by the dealership.
Finally, extended warranties are often expensive, and the coverage is often limited. So unless you’re buying a used car that is several years old, it’s probably not worth the cost of an extended warranty.
Unless you’re buying a used car that is several years old, it’s probably best to just stick with the manufacturer’s warranty.
You Might Not Even Need a Warranty
Many people believe that they need to purchase an extended warranty for their car when they buy it from the dealership. However, this might not necessarily be the case. Many newer cars come with extensive warranties that cover a wide range of potential problems.
In addition, many credit cards offer extended warranty protection as a benefit to cardholders. As a result, it is important to do your research before making a decision about purchasing an extended warranty. You may find that you don’t need one after all.
You Could Get a Better Deal Elsewhere
Deciding whether to purchase an extended warranty for your car can be a difficult decision. Some people feel comfortable relying on the manufacturer’s warranty, while others prefer the peace of mind that comes with having an extended warranty.
When it comes to extended warranties, there are two main options: a warranty from the dealership or a third-party warranty. There are pros and cons to both types of warranties, but in general, third-party warranties offer more protection and value for your money.
One of the biggest advantages of a third-party warranty is that it is not tied to a specific dealership. This means that you can take your car to any qualified repair shop for covered repairs, which can be especially helpful if you move to a new city or area. In contrast, a dealership warranty is only valid at the dealership where you purchased the car.
Additionally, third-party warranties often cover more than just mechanical repairs. Some also include coverage for things like roadside assistance, trip interruption, and rental car reimbursement. This can be a valuable addition if you are planning to take a long road trip or travel frequently for work.
Of course, there are also some disadvantages to third-party warranties. One is that they typically cost more than dealer warranties. However, this extra cost is often offset by the increased coverage and flexibility that a third-party warranty offers.
Additionally, it is important to do your research when choosing a third-party warranty provider, as some companies are better than others. Make sure to read reviews and compare coverages before making your final decision.
Overall, third-party auto warranties offer more protection and value than dealer warranties. If you are considering purchasing an extended warranty for your car, be sure to research your options carefully before making a decision.
Warranties can be beneficial—but only if you’re getting them from the right source at the right price. Before you purchase a warranty from a dealer, make sure you understand all the terms and conditions, do your research, and read the fine print carefully. Oftentimes, you’re better off without one.