This decision is purely yours. Repair costs are on the rise due to the advance in technology involved with autos. If you�re only leasing that Chevy for 36 months, you don�t need an extended warranty. Extended warranties can cost you a little now to save you a lot in the future when inflation has raised the costs of repairs. Some of the more common repairs are air conditioning, transmissions, and electrical. Down the line, one covered auto failure could pay for the cost of the warranty.

Sometimes the extended warranty sold by the dealer is a very confusing mechanical breakdown insurance policy that can wind up costing you over $4,000! Items that wear down, but do not break, are not covered in a dealer�s mechanical breakdown policy. Other car dealers will require that you have all repairs done at the dealership. What do you do when you can�t get your car to the dealership?

A car purchased new should run for a few months without anything needing to be repaired under the warranty. The warranty company does not expect any claims within a few months of a new car purchase. So, when claims come into the company within 60 days, red flags shoot up. Warranty contracts have fine print that specifies a car can have a pre-existing condition even though it was inspected prior to sale. Never purchase a problematic car with the hopes of getting repairs off of the warranty. Warranty companies understand that 90 percent of all claims within the first 30 days are either fraudulent claims or pre-existing failure claims.

Warranty companies check all the parts, labor, repair costs involved with your vehicle before they send a check to the shop. This way shops can�t get away with overcharging for labor, selling you parts you don�t need, or any other scams. If a shop tells you they can�t work with your warranty company for any reason, you should leave that shop immediately.

Don�t walk away from the dealer with a warranty unless you understand it fully. Always look at the warranty contract before purchasing it. If the dealer either doesn�t have it or refuses to show it to you, you don�t need it. Remember that a sales brochure is not a contract. Tell the dealer you would like to see a list of specifically what is not covered by the warranty.

Many people find great extended warranties online. There are several online warranty companies that offer extended warranties for vehicles comparable to the dealer, many times at a reduced cost. Sometimes these policies can be even more inclusive than dealer warranties.