Buying a warranty contract with the auto dealership was smart because I got free repairs on my preowned vehicle.
Even if the car has less than 10,000 miles on it when you purchase it, you never know what problems could be lurking beneath the surface.
This can vary from car to car, even from one manufacturer to the next. I know some people that get “lemons” as brand new vehicles and they’re paying constant sums of money to fix one thing or another. In those situations, you’re hoping that investing in a new car will give you something that doesn’t need to be repaired for a while, but the inverse isn’t always true with used cars either. Sometimes a used car will have years of use before you need to visit the auto mechanic for more than an oil change. If you get that warranty contract with the dealership, you could have a car with as much practical value as a new car but at half the cost. Assuming you purchased the car with credit, that’s a big difference in the financial burden of the car. My HVAC system in my house is under a similar warranty with the manufacturer for parts that break within the first 10 years of ownership. I have an additional labor contract with my HVAC supplier which means they will cover labor expenses on part or component repairs if I pay them $200 a year for maintenance and service visits. That way they can ensure that I’m doing what I’m supposed to do to keep the HVAC system operating at peak capacity.