If you're looking to purchase a new or new-to-you car in the near future, you need to understand what auto warranty program to get, to make sure you get the most bang for your buck.
There are essentially two different types of auto warranties available.
One is the standard warranty that was provided when your car rolled off the lot.
This warranty will usually run anywhere from two to five years, or up to a set amount of mileage, whichever comes first.
This warranty is usually included with the purchase of the vehicle, and is non-negotiable.
What you see is what you get.
Make sure you take the time to read the entire warranty, and understand what is covered, and what you will be expected to take care of yourself.
The other most common form of auto warranty is the extended warranty.
This is where you can end up spending way more money than you need to, if you're not careful.
An extended warranty can be purchased either when the car is initially sold, or at any time thereafter.
Be warned, it will be much easier to purchase an extended warranty for your car while it is still under the manufacturer's original warranty.
Once that expires, you may have a hard time finding new coverage.
Extended coverage can be for a variable amount of time or distance - as little as six months, or as long as several years.
Do your homework, and find out which duration will work best for you.
How long do you plan to keep your car? If you want a longer warranty than that time frame, make sure it is transferrable to the new owner.
Check to see what exactly is covered by the extended warranty - is it just drive train, or does it include all factory-installed parts? Does it include bonuses like roadside assistance? Remember that an extended warranty can be purchased at the time you buy the car, but make sure to read the fine print.
Some extended warranties start immediately, even if the current manufacturer's warranty is still in place.
And never let the salesman pressure you into getting the extended warranty.
There are options to get that coverage later on, should you decide you need it.
In the end, just remember to do your research.
An auto warranty program can be very confusing, if you don't take the time to sit down and read through the fine print.
Don't assume, ask as many questions as you need to, and make sure that the plan you have is the right one for you and your car.