10 Extended Car Warranty Myths That Are Costing You Money

You may be in the market for a new car and have researched factors such as vehicle costs, repair and maintenance costs, and where to get the best car insurance.

But what about getting a warranty for your car? It can be daunting to sort through different options and decide whether that kind of protection is worth it.

Here are some myths you might want to consider before you decide to get a car warranty for your next purchase.

Unfortunately, there are scammers out there who sell you extended warranties that don't provide what they claim.

It's a good idea to shop around and review different options before you buy an extended warranty, especially for an older vehicle.

You also may want to check company reviews to see what other customers say to focus on legitimate companies.

A warranty can be a great option if you're buying a used vehicle that may have some previous wear and tear.

But you should also consider a warranty for a new car that could cover items that a manufacturer's warranty doesn't cover. You don't want to be caught out with an unexpected repair and a manufacturer's warranty with limited coverage.

It's important to review a warranty before you sign off on one to determine exactly what your warranty will cover in the event of an issue.

Warranties may not cover everything, so you'll want to compare costs and warranties to find out what's covered and for how much.

You may be surprised at what is and is not covered, or you'll want to stretch your budget and pay more to have more issues under warranty.

Check your warranty to see what you need to do to maintain your coverage. Some warranties may require regular maintenance.

You can have maintenance performed at a dealer but it may be possible to also have service done by an independent mechanic to keep your warranty in good standing, which may cost less.

It's a good idea to review your previous car ownership and see if there were times when a warranty would have been useful if you had one.

You might be surprised by what your warranty covers, especially since your vehicle may have more issues as it ages and needs additional maintenance and repair.

It's important to consider different options when it comes to the warranty you want for your vehicle, taking into account factors such as the age of the car, the number of miles on it, or the environment in which you'll be driving it.

These factors could affect your decision-making process when determining what type of coverage you want so you can find a warranty that fits your particular needs.

Car insurance and an extended warranty cover different aspects of your vehicle, so it's important to find out how they can complement each other or what is covered by one and not the other.

A good rule of thumb is to check your insurance policy, which likely covers accidents and external damage, while a warranty will take care of mechanical issues and things under the hood.

It may be time to sell your car, but you have a warranty with terms that will cover the vehicle after you sell it.

It's a good idea to check and see if your warranty allows you to transfer its ownership to a new holder. You can then use the extended warranty as a selling point for potential buyers who will take over the extended warranty when they purchase the vehicle.

You'll want to check your warranty to ensure you can use aftermarket parts on your vehicle, but you should be able to pick up aftermarket parts — possibly for less money than a dealer — without voiding the warranty.

One thing to consider, however, is a warranty might not cover a repair if an aftermarket part caused the issue that needs to be repaired.

Extended warranties usually don't cover routine maintenance, so you'll still have to pay for things like oil changes and tire rotations.

One thing you may want to check is the fine print on your extended warranty that covers routine maintenance. Some warranties may require you to stick with the car's maintenance schedule in order to be covered by a warranty.

Depending on various factors, a car warranty can be a good investment or a waste of money.

If you own a car, it's important to make smart money moves, so create an estimated budget that covers all the potential costs of your vehicle, including a warranty, gas, repair, maintenance, and insurance costs, to help you decide what's right for you.