Pros and Cons of Buying an Extended Warranty for a Car
According to the results of the J.D. Power and Associates 2013 Vehicle Dependability StudySM, a better warranty is not one of the most important factors considered by consumers when choosing a new vehicle. The same study, however, consistently finds that consumers say reliability and durability are the most important factors in their choice of vehicle.
Reliability and a better warranty are not dichotomous concepts, yet in J.D. Power research, the gulf between them is significant. This may be due to recent expansions of original warranty coverage by many automakers, which makes warranty coverage a non-issue for many buyers. It could be that people value a car's actual track record for reliability, and not whether someone else is going to pay the bill if a breakdown occurs. Or it may be that consumers know that if they want a longer warranty, they can buy one.
Today, consumers are keeping their cars for longer periods of time than ever before, and because new vehicles are loaded with complex technology and electronics, an extended warranty may be appealing. Even the most generous of original warranties supplied by the car companies expire after 10 years or 100,000 miles of driving, while many last for just 3 years or 36,000 miles. This article takes a closer look at some of the pros and cons of buying an extended warranty (also referred to as an extended service contract) for a car.