Are Automotive Extended Warranties Worth It?

Couple sitting at sales desk at dealership

You’ve probably heard all kinds of jokes about extended car warranties. But the reality is that automotive-related extended warranties get a bad reputation. After all, these F&I add-ons can be financial life-savers! In a 2019 survey, 62% of surveyed participants with extended warranties said that they benefited from their extended warranties in the past year.That’s right: a majority of those who’ve purchased extended warranties have felt they were worth it.

If you’re on the fence about an extended warranty, our advice is twofold. First, be sure to weigh the cost vs. benefit of an extended warranty for your unique situation — our finance team can help. If you feel that you can stomach the upfront cost, chances are good that you will benefit from the added layer of protection! Momentum Alfa Romeo has more details below, so keep reading!

What is an Extended Warranty?

Extended warranties, or extended automotive warranties, are generally purchased when you buy a new (or even used) vehicle during the time when you speak to the finance manager or F&I people. Extended warranties act as a safety net much like other coverages including GAP protection. If your vehicle needs major repairs that are no longer covered by your new vehicle limited warranty (or are outside its scope) and those repairs are covered, your extended warranty will kick in and you’ll likely pay nothing, or a small deductible. For this reason, extended warranties are favored by drivers seeking extra peace-of-mind. The trade-off of an extended warranty is paying a bit more upfront to protect against future potential costs that could derail your budget.

What Else do Extended Warranties Cover?

Extended warranties vary in scope and coverage details, but often, they cover things like:

  • Repair expenses
  • Towing
  • Roadside assistance
  • And more!

Extended Warranties for New & Used Vehicles

There are extended warranties available for both new and used vehicles, and they’re both worth it, depending on your needs. Here’s a general overview of how new vs. used extended warranties differ:

New Vehicles

When it comes to deciding whether you should get an extended warranty for a new Alfa Romeo vehicle, you’ll want to consider a few factors, such as:

  • Do you plan on swapping out your vehicle in the next 10 years? If so, then you may not need one, as vehicles are built to be more reliable than they were in the past.
  • If you’re planning on keeping your vehicle for more than 10 years then an extended warranty can definitely be worth the investment.
  • What kind of insurance coverage and warranty coverage is included with your new vehicle purchase? This is worth looking into before buying an extended warranty to prevent duplicate coverage.

Used Vehicles

When it comes to used vehicles and extended warranties, it all comes down to risk and reliability. Consider these points:

  • Get the used vehicle inspected and get an estimate created for any current issues.
  • Think critically about how long you plan on keeping the vehicle and what kind of repairs will be expected to occur or could reasonably occur during that time.

Should I Buy Extended Warranties?

Are extended warranties worth it? As you’re likely beginning to see, that all depends on your need. People asking if they should buy extended warranty coverage should ask themselves if they’re willing to shell out potentially budget-breaking money later on for major vehicle repairs on top of any monthly payments they may be making.

If the answer to the above question is a no, then an extended warranty is most definitely worth its weight in gold!

Discuss All of Your Financing Options at Momentum Alfa Romeo

Curious to hear more about the extended warranty coverage we offer for Alfa Romeo vehicles here at Momentum Alfa Romeo? Be sure to call or contact us online for more information. Curious to learn more about Alfa Romeo service or finance topics? Visit our service tips page or our finance tips page!

 

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