Extended Car Warranties: Are They Worth It?

Are you thinking about buying a new or used car? If it is your first one, then you probably do not know much about the Insurance and Warranty of the car, which is why it is advised that you visit warrantyandinsurance.com.au. There, you will learn all you need to know about that, and for those who are familiar how things work, this article will explain the deal with extended warranties.

Searching for the easiest way to save up on your next car purchase while simplifying the process of buying at the same time? Well, you should skip the extended warranty. However, you should know that there is a huge chance that a dealer will try his best to sell you on the extended warranty, but that is not worth it.

The chances are that you will be at loss if you get extended warranty

The survey

Keep in mind that the amount of money you paid will be way over the amount you will save in repairs, so there is really no point. There was a recent consumer report survey that showed that over 55% of people who had bought the extended warranty did not use it for car repairs at all, even though the usual price of an extended coverage is about $1200.

In this survey there were participants who used their own policy, meaning that they paid the repairs out of their pockets that were covered by the extended warranties and that summed up to about $837. If you look at the average initial cost of about $1200, that comes up to a net loss of over $375.

If you include the ones who did not use the policy, the savings median was 0, but that might have had something to do with the fact that the satisfaction with the auto-mobile extended warranties is not as high as it should be for a warranty contract.

Reliability and Satisfaction

The people who had extended warranties and actually used them were asked how satisfied they were with the effect and their experience, and their answer was positive only with the ones who owned cars from a less reliable brand.

Read everything carefully before signing anything

The reason behind their satisfaction probably had something to do with the fact that they tend to use that coverage more often than you would use it with a more reliable brand instead. This way, the consumers felt more justified when they did not spend money for the coverage but they spent it on an extended warranty.

For example, BMW owners were the ones who most likely used their coverage more than any other brand, with 71% of consumers saying that they did. After that you have the Chrysler owners with about 65%, then come the Dodge drivers with 63% and in the end Mercedes-Benz at 60%.

Why do warranties matter?

Just like the insurance contract, the warranty car contracts are here to make your life easier by covering expenses of some car repairs or lessening the amount you need to pay. But you need to understand that while the extended warranty does cover a larger cost of repairs, there is a 90% chance that you will not use it if your car comes from a reliable brand.

Final word

If you are still interested in the extended warranties, you can check out the Mercedes-Benz extended warranty cost and see if you really need it. For those who are a bit skeptical, there are many places where you can ask about this, and make sure you do so before signing any of the contracts.

 


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Auto Angles by Xohaib