5 Factors to Consider Before Including an Extended Warranty in Your New Car Finance

When it comes to new car finance, Perth drivers are often so overwhelmed by their choices, they can make a costly mistake. Including an extended warranty in your new finance deal can be a good idea, but you need to consider these five factors before you sign on the dotted line.

Have You Shopped Around?

Although the salesperson may be putting a little pressure on you to get all the agreements in place, you need to have confidence that it is the right deal. Don’t just assume that because you have been offered great new car finance rates, that the extended warranty is also the best package. It is a good idea for Australia based drivers to obtain several quotes and compare the benefits offered before agreeing to a deal. If the extended warranty is too costly at the moment, you could always purchase it separately later.

Your Repair History:

Your history of previous cars will also be an important factor in your extended warranty decisions. Have you suffered from frequent vehicle breakdowns due to heavy use? Do you frequently drive off road? If your vehicle is just used to get you to the local shop and home again, you are not likely to get the best value from an extended warranty.

Policy Inclusions:

You also need to assess what is and is not included in the extended warranty. Not all policies are the same, and you may find that there are some limitations and restrictions which could impact whether it is the right choice for you. You may find that parts that commonly break down or suffer from heavy wear and tear are not actually included in the warranty. This means that you are not likely to get good value for your money. If there are coverage tiers with increasing costs, you need to consider whether the extra expense is worthwhile. There is no point in paying for a high-cost warranty if you are not going to get maximum benefit from it. On the other hand, you are likely to be disappointed if you opt for a very basic policy that doesn’t offer much protection in the event you need to make a claim.

The Policy Backer:

You also need to confirm who is backing the extended warranty. This should be an established and reputable insurance provider. While a cheaper policy may seem like fantastic value, if it is backed by a fly by night company, you could find yourself holding a worthless piece of paper in years to come. It is worth paying a little more to have confidence that you are protected by a reputable company.

Do You Really Need it?

Finally, you need to consider whether you really need the extended warranty. Buying a new or preowned car can be a considerable expense, and if you don’t really need it, you will be wasting money. However, it is worth considering that the right product offered at the right price can be worth its weight in gold.

If you are considering extended warranties or new car finance, contact us. The All Credit team are here to answer any queries or questions. We would be delighted to help you obtain the deal best suited to your particular requirements.

I am a business Coach and Writer in Perth WA, Mom of 2 charming Sons. Cam is my name and for me Writing is Just like playing a Game.