Car buyers crave reliability. It’s a top concern of almost every new and used car shopper, according to a recent survey by Consumer Reports. But even a trustworthy brand isn’t always enough.
Some people want extra protection from an extended warranty. Are they being sensible shoppers or sitting ducks for aggressive salespeople?
“An extended warranty may give you peace of mind, but Consumer Reports has found that buyers aren’t always going to see a return on that investment,” explained Jeff Bartlett, Consumer Reports auto editor.
But extended warranties can make a lot of money for those who sell them.
The Better Business Bureau recently issued a warning to consumers after receiving hundreds of complaints about companies selling extended auto service contracts, and suggests using extreme caution when considering one.
“A better plan is to take whatever money you would spend on an extended warranty and put it in an emergency fund. You’ll have that money available if you need a repair, or you can put it toward your next car,” said Bartlett.
But if you find comfort in an extended warranty, read the fine print. Consider things such as the length of the plan, the coverage limitations and of course the price, which can be negotiated.
It’s also a good idea to buy a car with a better-than-average predicted reliability rating, and then properly maintain it.
