Auto Warranties: Extended Service Agreements
There are a handful of factors to consider that might help you make your decision of whether or not to buy extended service agreements. One, which you might not consider immediately, is what year your model is and the history of that model. If your car is the first generation of its kind, it will be more prone to problems. Unproven car models historically have more problems than those that have been around for a while.
I personally think that any problems a new car model might have should be covered under recalls and the manufacturers warranty. Ive been wrong once before, so dont take my word for it. Those who demand to have the latest model of car dont usually have a problem with purchasing an extended warranty. These extended service agreements help assure them that theyve made the right decision in purchasing the newest of cars on the market.
Extended Service Agreements Can Wait
Some experts recommend that you wait until after your existing warranty is up before purchasing any new extended service agreements. At the end of your cars original warranty, you have a better idea of how well you are going to like your car and how long you plan on keeping it. Signing an extended warranty right off the bat is like marrying your car. But if its love at first sight, you might get a more comprehensive plan by signing right away.
Whichever option you decide upon, you should know that cars dont typically explode the day that your first warranty expires. Sometimes its a good idea to wait 60 days to see if the honeymoon is over. If youre still head-over-heels in love, you should try and get a good deal on an extended service agreement.