Should You Have an Extended Auto Warranty - Two Important Factors to Consider

As a vehicle owner you know that it is far more expensive to replace a vehicle then it is to maintain a vehicle, those that offer an extended auto warranty also know this. The companies that sell extended warranties for you automobile are hoping that you are the type of customer that is going to keep your vehicle for more than two or three years. This is because those consumers that want to get six to ten years out of their vehicles are much more like to purchase an extended warranty.

So the question remains whether you actually need the warranty. The fact is that if you are only going to keep your car for less than three years you can probably stay away from the policies. The odds of you needing any major repairs are probably slim and those that you may need will most likely be covered under the manufacturer's warranty that every new vehicle comes with. So if you fall into this category you may want to pass.

The people that should consider an extended warranty for their vehicles are consumers that are going to keep their vehicles over three years and those people that drive their cars more than the standard 12,000 miles a year. For example if you are a sales person or you travel a great deal then your manufacturer's warranty is going to expire much more quickly because of the miles you are driving and you are putting more wear and tear on your car then the average driver. This of course means that you have now increased the likelihood that something is going to go wrong with the car.

If you keep your cars for a long period of time then you can also expect that certain parts are going to bad just because of the naturally occurring wear on the parts. So if you fall into either one of these categories you should seriously consider purchasing and extended auto warranty. There are several ways to purchase these warranties. The first place is at the dealership itself when you purchase the vehicle. Many people choose this option because they can add the cost of the warranty to the financing of the vehicle.

However you will be given the opportunity by many solicitations before your manufacturers warranty expires. You will oftentimes receive fliers in the mail giving you the opportunity to sign up for one. You can also find them online. Make sure that when you begin to shop around for a warranty to compare them closely. You need to make what the warranty actually covers. For example many warranty companies offer road side assistance which cost you nothing and is available 24 hours a day. Other companies offer the service but require you to pay a deductible.

So when you are decided whether or not to purchase an extended auto warranty you need to look at how long you are planning to keep your vehicle and how many miles you put on your car annually.