Should I Buy Extended Warranty on a New Car?
Whether or not you should buy extended warranty on a new car is a common question. The debate is not just whether to buy an extended auto warranty at all, but whether it is worth it for a new car.
Luckily, Obvi is here to help! Here are some things to keep in mind:
Buying at the time of car purchase versus waiting
Obvi has brought Extended Warranty and GAP Insurance fully online in Western Canada, meaning that you no longer have to buy from the dealer. Although this means you can buy at any time while your vehicle is eligible, you might want to know that it will cost a little bit less buying it straight away rather than waiting closer to the time that your warranty expires.
Also, in those few years between the purchase of the new car and the manufacturer’s warranty expiring, your initial extended auto warranty quote may become more expensive, as the rates could increase. A quote you receive is valid for 30 days.
We often get asked the question “why am I not eligible for Extended Warranty?” Usually, it’s because the manufacturer’s warranty has expired. With our busy lifestyle, it is easy to forget exactly when this expiration date is, and an Obvi policy can only be bought if you have at least 30 days of the manufacturer’s warranty left. Just so you don’t forget, you might want to buy it right away so you know you are covered.
Be prepared before you get the dealership sales pitch
It’s always a good idea to do some research on whether you should buy an Extended Warranty on a new car before you purchase your vehicle at the dealership. Why is that?
- Pressure — you don’t want to be pressured into something that you potentially know nothing about once you have already decided to purchase your vehicle. After making a deal on the car, you just want to finalize the payments and leave as quickly as possible. Instead, dealing with the finance office often takes time and you can feel pressured into making a decision. When you buy anything in life, it’s not great to feel pressured into a purchase from a salesman, even if it is something you might be interested in.
- Understanding the product — it’s very important that you understand what the warranty you are purchasing is, including the fine print. You need to take your time to know what is included and excluded in the policy, what the coverage is, what the financial implications are (are they suggesting rolling it into your monthly payments, and how much will this cost you in total?) and so on.
- Knowing whether you got the best deal available — don’t just take the word of the salesman! Do your own research and see if you could be buying a better product at a fraction of the price.