Auto Warranties: Buy Extended Warranties
When people I know want to go out and buy extended warranties, I try and remind them of the little things of which they may not be aware. After Ive gone through my extensive list of what to look for, what to avoid, what to pay for, and what to pray for, I try and cover all the details where the devil likes to play. The first two of these small caveats I group together in what I call renewals and transferability.
If you buy a three year-old car whose original warranty has run out and you also buy extended warranties for that car for three more years, what happens then? You have a six year-old car that still runs smoothly. Whether you want to sell it or keep it around for a while, you need to make sure that your extended warranty can do what you need. If the warranty has run out, you want to be able to renew it at a similar rate. If youve taken good care of your car so far, you should not have a problem.
Everyone Wants to Buy Extended Warranties
If you find yourself in a situation where you have decided to upgrade to the latest model following your brief stint with a used car, youll probably want to trade it in or sell it. If you decide to go the private sales route and your warranty is still active, you will want to have an extended warranty that can be transferred. This transferability ranks as a major sales point when you are trying to unload your used car. People–even if theyre family–trust a warranty more than they trust you.
I know that these are the annoying minutiae you feel that you dont need to waste time thinking about. I encourage you, however, to pour over every deal of a contract and make sure that your brain has tied up all the loose ends. Peace of mind doesnt come when you buy extended warranties; it comes when you buy the right one.