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New Vehicle Purchases – Remember Extended Warranty

Cars, trucks and SUV’s are probably some of the most expensive items that can be purchased, and regardless of the expense of the purchase of the vehicle, the service and replacement parts costs have also to be considered. For this reason, many new vehicle purchases choose to purchase extended warranty insurance, also known as “auto service contracts.” The extended warranty would be purchased over and above that of the basic warranty that is provided with the purchase of the car, truck or SUV and will become active on the expiration of the basic warranty.

But before purchasing an extended warranty, there are a number of factors that have to be considered. The most important being, how much did you originally spend on the car, truck or SUV? The value of the vehicle has a direct relationship on the purchase of a warranty plan as repairs can be costly, particularly on an expensive vehicle. Generally it is a wise decision to purchase an extended warranty for an expensive vehicle but before the purchase of an extended warranty it is very important that you understand how the warranty plan works. extended warranty plans might be considered to be expensive by the vehicle owner, but in the long run, particularly as the vehicle ages and picks up mileage, it is generally worthwhile

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