have seen this happen a lot, people will sit for a few hours with
a car sales person negotiating on the price they will pay for their
new car, yet when it comes to protecting their investment and getting
new car extended warranties, they decline. I don't quite understand
the reasoning behind this, your car is the second biggest investment
we make (our home being the biggest) wouldn't you want to protect
of the main reasons I hear for opting not to get extended automobile
warranties is "I thought this vehicle was suppose to be a quality
vehicle?" You are quite right, the vehicles on in the market today
are good quality, however, consider this for a second ...
new car has over 17,000 moving parts. If it were built 99% "perfect",
that means still 170 parts would fail during the life span of your
new car. Going further if it were built 99.9% "perfect" that means
17 parts would fail during the life span of your car, and going
one more step if it were built 99.99% "perfect" then 1.7 parts would
fail during the lies.
That one or two parts could be something as inexpensive as a seal
for $15 or an engine for $4000+. The question you need to ask yourself
is ... If it was a major part that went would you be able to just
pop out the cash to pay for it? The more important question is doesn't
it make sense to spend money on new car extended warranties now
so you can keep that $4000 where it belongs ... in your pocket?
Think of extended automobile warranties as mechanical insurance
for your car. It lets you expand the current manufacturer's warranty
and it covers the cost of new "manufacturer" replacement parts,
plus a techs labour.
There are different types of new car extended warranties which give
you a wide range of mechanical coverage based on various terms and
kilometre allowances. The key is having an idea as to what you plan
on doing with your new car. Are you leasing? In which case all you
may need is a top up of the comprehensive warranty (bumper to bumper).
If you buy your car and hang onto it for a while then you may want
coverage for a longer period of time both on the comprehensive and
on the powertrain. Incidentally, if you are keeping you car for
a long time, there are a couple of advantages to having extended
new car extended warranties are fully transferable to a second owner.
That provides peace of mind for the new buyer AND typically those
vehicles with extended automobile warranties show pride of ownership,
they increase your re-sale value
cost of repairs have increase a lot over the years. For example,
in 1991 a transmission replacement would bring you an $850 repair
bill, in 2003 the average repair bill was $4056 and I am very confident
in saying that those rates have increased even more since then.
Adding new car extended warranties to your monthly payment protects
you from the rising costs.
and one last point ... Do you know the NUMBER 1 REASON people's
vacations are cut short? CAR TROUBLES!
Automobile Warranties - 5 Benefits to Having One