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How Much Should You Pay for an Extended Auto Warranty

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Auto Warranty in Oregon

Oregon MapOregon car buyers should consider how long they plan to drive their new vehicle before signing on the dotted line to purchase an auto warranty along with it. If the used car will be driven for several years, there is a good chance the vehicle is going to need major repairs during that time, such as transmission or engine service.

Upgrading to a new car before the warranty expires on the old one may prevent the necessity of some repairs. However, if a person is trying to get the maximum value out of the warranty, this is not ideal as most of the value of the warranty comes from repairs made at the end of its term as the vehicle ages. The best value can be obtained from an auto warranty by driving the car through the end of the auto warranty coverage.

Some dealers will put pressure on the buyer to purchase an auto warranty at the same time as the purchase of the car. They may even use the sales pitch that the warranty will be included in the car loan, so the buyer doesn't need to pay for the warranty up-front. This is a high-pressure selling technique, and is actually not in the best interest of the buyer since there will be interest paid on the auto warranty during the life of the loan. If an auto warranty is being purchased, it is wiser to purchase it separately from the vehicle.

Before making the decision to buy any auto warranty, a buyer should research the reputation of the company providing the warranty. Checking it out with the BBB is the best move, as well as determining how long the company has been in business. A company should have at least an A- rating with the BBB and have been in business for at least 10 years. Ascertaining these factors will help ensure finding a reputable provider.

Obtaining an auto warranty in Oregon need not be the impulsive response to a high pressure salesman; it should be well-planned and researched.

 

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