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When you buy a new or used car from a reputable dealer it will come with a warranty of some sort, depending on its age and mileage. Everyone knows what a warranty is, but how many think of them as what they really are? A warranty is a protection policy, and they make more sense if we think of them that way. Like any protection policy, a warranty has a cost associated with it, but we're extremely pleased we did take it out when we have to make a claim. Here are five reasons why car warranties make such good sense.
1. Peace of mind
Buying a car and keeping up with routine maintenance is enough expense for most of us, without having to worry if a big repair bill is waiting for us around the corner. As long as you have a warranty covering your car you can rest assured you're not going to get landed with a hefty bill if something needs repairing or replacing, as long as it's not a wear and tear item such as a tyre or exhaust.
2. High mileage
If you do particularly high mileage in your car, even the original manufacturer warranty on a new car can run out pretty fast, which could leave you exposed to potentially expensive repair bills. Most new cars come with a three-
3. Keep your car longer and save money
As the amount your vehicle depreciates in value gets less over time, it can make a lot of financial sense to keep it for longer than the period covered by the original manufacturer warranty. However, even though the depreciation slows down, the older it becomes the more likely it is to go wrong from time to time. A warranty is a fixed cost so you know how much keeping your car on the road is going to cost without any nasty shocks.
4. Afford your dream car
You might not be able to afford your dream car brand new, but heavy depreciation with many expensive cars means you might be able to afford one a few years old. However, vehicles that were expensive when they were new will still be expensive to repair even when they're older and cheaper to buy. A warranty helps you budget so you know you're going to be able to keep your dream alive if something goes wrong with it.
5. Protect your resale value
Having your car covered by a warranty will lessen the temptation to put off non-
5 September 2016