Looking to get an extended warranty on your car, truck, or other vehicle? While it’s debated whether or not extended auto warranties are actually worth it, in reality they can be a big waste of money—especially if a warranty doesn’t end up being the right choice for you. This is exactly why it’s important to do your research on extended auto warranties before you decide whether or not to purchase one. Keep reading to discover 5 reasons why extended auto warranties are a waste of money:
1. Resale value impact
Resale value, resale value…while every vehicle owner has probably heard this term, it can be tricky knowing what factors actually impact the resale value of your vehicle. Extended warranties, for example, are one of those factors that do not add significant resale value to your vehicle, according to many. Keeping this in mind, it might be good to reconsider purchasing an extended automobile warranty if you are counting on it to make your car more appealing and valuable when it comes to future resale.
2. Changes in technology
Technology is changing with us and our world—everyone knows it. Thus, what’s valuable now may not be valuable years, months, or even weeks from now. With so many of these rapid technological changes, it could be redundant to pay money for an extended automobile warranty. By the time your coverage period is over, for instance, there’s a potential that the value of your warranty might have depreciated, whether slightly or largely.
3. Cost exceeding potential repairs
Before you buy an extended auto warranty, it’s important to check whether or not the cost of said warranty exceeds the estimated costs of the repairs that might be necessary during your warranty coverage. If it does—especially by a huge amount—then it’s likely that the warranty is a waste of money. Thus, if you find yourself in a situation where cost exceeds potential repairs, it’s best to stay away from any extended warranty you’re thinking of purchasing, even if you just want to keep your vehicle safe.
4. Vehicle reliability
If your vehicle is commonly seen as reliable—low maintenance costs are a huge bonus—then it could be unnecessary to purchase an extended auto warranty. It doesn’t make sense to waste your money on something that goes unused, and this includes any auto warranties you’re looking into. Therefore, if you know that your vehicle has been manufactured with fewer issues, then it might be a good idea to skip the warranty altogether.
5. Manufacturer’s warranty
Manufacturer’s warranty is often included with the purchase of a new vehicle. As such, extended automobile warranties are often rendered unnecessary. After all, a manufacturer’s warranty will keep your vehicle covered for a certain amount of time or mileage—for some vehicles, this is all that’s needed.