Unless you are fortunate enough to be able to pay cash for your cars, you probably finance. Depending on the lender and your credit score, interest rates for vehicle loans range from 6% all the way to 20% (more in some states). Many buyers opt for a car warranty during the purchase process through a dealership, because it only raises their payments $15-$20. For less than $1 a day, that’s a bargain for the security an auto warranty offers. The hidden cost, though, is that since the warranty price is included in the car loan, the customer is paying interest not only for the vehicle price, but for the car loan.
Phil Colasurdo got his dream car, a 2007 Nissan 350Z roadster. Being only gently used, but still not new, it was a relative steal. At 37,300 miles, it was only just out of the factory warranty period. That being the case, Colasurdo declined to get an extended warranty. After all, what could go wrong at such low mileage? A lot, as he found out.
Everyone knows that a quality car warranty is essential to controlling auto repair costs. Taxes, parts, and labor will be picked up by the extended warranty administrator. The driver need only contribute a small deductible. But most people – even many warranty owners – do not realize that practically every auto warranty comes with other benefits, such as roadside assistance, towing, and trip interruption reimbursement.
This is the first week of summer. That means vacations, cookouts, camping – and high temperatures. Whether on long trips or short ones, people depend on their vehicle’s air conditioning system to provide relief. Having a quality extended automobile warranty for your vehicle can help ensure your wallet does not get hot from expensive repair bills.