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What about Vehicle Extended Warranties?

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After you finally come to an agreement over the price of your new car, the finance manager at the dealership will begin to try to sell you an extended warranty. An extended warranty is actually an extended service contract which covers the cost to certain repairs and problems after the car's factory warranty expires.

First, don't be pressured into making a quick decision. You may not need an extended warranty. And if you do need one, you may find a much better deal somewhere else so do some shopping around first.

If you buy and trade vehicles often, you should pass on an extended warranty. If you plan to only keep your vehicle three or four years, your repairs will be covered under the original warranty.

In addition, since many new cars have such a great warranty, you might not need an extended warranty. Many manufacturers offer warranties above and beyond the standard three-year or 36,000 miles protection. So before you buy an extended warranty, be sure to take a close look at your car's original warranty. That may be all you need.

Check out the standard warranties that come on these new cars:
• Acura, BMW, Cadillac, Volvo, Saab, Mercedes, Lincoln, Lexus, and Jaguar all have four-year or 50,000-mile warranties.
• Infiniti vehicles have four-year or 60,000-mile warranties.
• Kia and Hyundai offer five-year or 60,000-mile warranties on all new vehicles plus 10-year/100,000 miles powertrain warranties which cover engine and transmission repairs.
• DaimerChrysler vehicles come with seven-year or 70,000 powertrain warranties in addition to the traditional three-year or 36,000-mile factory warranties.

Next Page: When You Might Want a Vehicle Extended Warranty

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