Most new vehicles come with a standard 36,000 miles/36 months warranty, whichever occurs first. An extended warranty is intended to cover repairs beyond the standard warranty. Some extended warranty gives you coverage beyond what the standard warranty doesn’t cover; usually, coverage you most likely do not need.
In addition, if you have a new lemon vehicle, having an extended warranty is quite useless. If the service center can not fix the vehicle, then the issue is moot. Your best course of action is to contact a texas lemon law attorney as soon as possible.
If you plan on putting a lot of miles on your vehicle, so as to trigger the 36,000 mileage coverage quickly, then it might be a good idea to opt for the extended warranty.
On the other hand, if you plan on using the vehicle as a second car or leisure vehicle, then the 36 month threshold will give you three years to drive. After 3 years when the standard warranty expires, as statistic shows, you would likely trade your car in for a more modern model vehicle; making the extended warranty useless.
The most important aspect of an extended warranty is what it covers and excludes. The normal exclusion includes normal wear and tear; and negligence. However, I have reviewed an extended warranty for a client once and it was virtually useless coverage because there were so many exclusions in it.
Remember to go by what is written in the warranty and not what the finance guy/gal says. It doesn’t matter what they say, don’t trust them; their goal is to earn a commission, they are not your advocate.
Mathematically, you might be better off setting aside a rainy day car repair fund than to purchase the extended warranty.
If you decide on purchasing, it is vital that you negotiate the price of the extended warranty. Start with 50 percent from the asking price, you have little to lose, because you can purchase the extended warranty from a private vender after the purchase transaction. Remember, the pushy finance person is just another sales person. They will likely agree to a 20 to 30 percent off reduction from the original asking price.