Protecting Your Baltimore Car Loan With an Extended Warranty
There are a lot of names for it: Extended warranty, mechanical breakdown insurance, vehicle protection plan or extended service plan. Whatever it is called, it’s worth considering buying protection for your new Baltimore car loan and vehicle.
But let the buyer beware: Not all extended warranties are the same.
Should I Buy an Extended Warranty?
Price
First, don’t consider price as your only deciding factor. Cheap warranties may cost you more in the long run by not covering much.
On the other extreme, be careful of warranties provided by the dealer. These can often be overpriced (marked up with a profit for the dealer as opposed to buying directly from the company) regardless of the coverage. Some dealers may also say you are “required” to buy the extended vehicle service plan…just say no! You are not required to buy it, it is your choice.
Some dealers may require you to have the service done at that dealership with their product. What happens if the dealer goes belly-up?
New Vs. Used Car
Are you buying a new or used car? If you’re buying a used car, there are plans available, but usually only up to a certain age or mileage of the vehicle. This can vary significantly from plan to plan. Just make sure you know what is covered.
Coverage
Like any insurance, you may never need the coverage, but it’s nice to have if you do. Carefully review the price versus the coverage provided. Know what is covered and what you will be responsible for paying out of pocket. There are virtually no plans that will cover routine maintenance, but aside from that, the coverage may vary widely.
There are many places to obtain coverage. You can check with the financial institution where you are financing your Baltimore car loan. Destinations Credit Union, for example, offers a very reasonably priced vehicle protection plan with great coverage. You can even pay a little bit extra and get your money back at the end of the contract if you don’t use it–sort of insurance for the insurance.
Chances are you can finance the plan in with your Baltimore car loan at your financial institution. There are also websites which allow you to obtain quotes for this type of coverage.
How prepared are you to make a repair to your vehicle should something expensive go wrong with it once it’s out of the manufacturer’s warranty? If you have a secure job (Really? In this economy?) and lots of money in savings, maybe you don’t need it. For the rest of us, it’s a small price to pay for peace of mind.
