July 18, 2014
By Jason Heard, GM at Frank Ancona Honda
Extended warranties are also often known as service contracts. They can help with everything from resale value (you are more likely to get things repaired if they are not costing you), to keeping surprises at bay (unexpected repairs) and items like roadside assistance and trip interruption are available on some extended warranties. They also help cover repair costs after the manufacturer warranty has expired. Some have deductibles, while other may not. It’s just like insurance for your car. But who really needs them and how do you know if it’s a good deal?
Here are some questions to ask yourself before purchasing an extended warranty:
How long do I plan to own the car?
How many miles per year do I plan to drive?
If a repair is needed, what type of deductible is manageable?
What does your repair history look like?
Will you have peace of mind if you don’t buy it?