Auto Service Warranty

Buying a car is a big investment. Not only is the initial cost pricey, but the maintenance on a vehicle can be expensive too. That is why dealerships offer an auto service warranty for every vehicle they sell. But are these warranties really worth the money?

The advantages to buying an auto service warranty are obvious. If any repairs need to be done to a vehicle that a warranty covers, the owner is not responsible for the cost of those repairs greater than the amount of the deductible. This can be a real money saver if your car needs a major repair such as a new engine or transmission.

However, there are disadvantages to buying a car warranty. One disadvantage is that if a warranty is bought and not used your money has been wasted. Another disadvantage to having a warranty is that if your car needs to be repaired you have to take it to a specific shop. For example, if you bought your car through a dealership then your vehicle must be repaired by that dealership in order for the warranty to be honored. The same rules apply to independent warranties such as a fidelity service warranty.

Another consideration when purchasing an auto service warranty is the type of warranty being offered. Contrary to popular belief, bumper-to-bumper coverage does not include all vehicle maintenance. Repairs such as new tires, brakes and oil changes are not typically covered by a bumper-to-bumper warranty. Another type of warranty is a power train warranty. Power train warranties only cover certain parts of the vehicle, usually the engine, transmission and axles.

Warranties can be a big money saver or they can be a money waster. It is up to you to make an informed decision on what best fits your financial needs. By researching the different warranties available, you will be able to take home your new car with the peace of mind that you’ve made a good investment.