“Should I buy the extended warranty?”

That’s a question I hear pretty regularly, especially when someone is buying a used vehicle. And like most things in the automotive world, the answer isn’t simply yes or no.

First, let’s clear up one common misconception: an extended warranty isn’t really a “warranty” in the same sense as the original manufacturer’s warranty. It’s typically a service contract that agrees to pay for certain repairs under certain conditions.

And those last few words are VERY important.

Some service contracts can be worthwhile. Others can leave you wondering why you just paid all that money for something that doesn’t cover the repair you actually need.

Read the Fine Print!

The biggest thing I tell people is read the contract before you buy it.

What components are covered? What isn’t covered? Is there a deductible? Does it cover diagnostic time? Does it cover sales tax and shop supplies? What happens if the vehicle needs to be towed? Does it cover rental transportation? Are there mileage or time limits? And perhaps most importantly, who is actually responsible for paying the claim?

I’ve seen customers assume they have “bumper-to-bumper” coverage, only to discover that their particular repair falls under an exclusion.

Sometimes the contract sounds great until you get to the part where it says something along the lines of, “Covered components include everything except the stuff that can actually break.”

Okay, maybe the contract doesn’t literally say that—but sometimes it sure feels that way!

Here’s Where It Can Get Complicated

As an independent repair shop, we occasionally run into another issue with service contracts: getting the repair approved and getting everyone on the same page.

When we diagnose a vehicle, we know what needs to be repaired. But the warranty company may have its own procedures before it will authorize the repair.

The phone calls to get approval alone typically take hours, tying up our service writers on the front counter waiting on hold to discuss the estimate.

Sometimes they want additional diagnostic testing. Sometimes they want pictures, documentation, or a specific procedure followed. Sometimes an adjuster needs to review the repair. And sometimes the warranty company and the repair shop have different opinions about what is actually covered.

Meanwhile, your vehicle is sitting on our lift and you're wondering, “So...when will I get my car back?”

It can be frustrating for everyone involved.

That doesn’t mean all service contracts are bad. It simply means you need to understand that buying one doesn’t necessarily mean “take it to the shop and everything is covered.”

For example, the warranty companies often cap labor rates for mechanics at prices that are out of date and not keeping up with inflation. And they often don’t pay for good quality parts, recommending cheaper alternatives that will not last. You must know that you will be responsible for any differences in price.

So, Should You Buy One?

There are certainly situations where an extended service contract can make sense. If a major repair happens, having someone else pick up a large portion of the bill can provide some real peace of mind.

But there’s another option worth considering.

Instead of spending several thousand dollars on a service contract, you could put that money into a savings account specifically for vehicle repairs. You could budget a certain amount per month and add to it each month. If the car behaves itself, you still have the money. If the car decides to have a bad day, you have money set aside to fix it.

Of course, there’s a downside to that strategy, too. One major engine, transmission, or electrical repair can cost more than the money you’ve saved. That’s where a good service contract can potentially be valuable.

So, in my opinion, the real question isn’t “Is an extended warranty worth it?”

The better question is:

“What exactly am I getting for my money?”

If you’re considering one, take the time to read the contract. Ask questions. Find out what is covered, what isn’t, where you can have the vehicle repaired, what your deductible is, and what you will be responsible for paying.

And if you’re buying a used vehicle, consider having your trusted mechanic inspect it before you buy it. Knowing what you're getting into can be worth far more than any warranty. We offer pre-purchase inspections at our shop. And many other shops do as well.

At Solomon’s Garage, we don’t sell extended warranties, so I’m not here to tell you that you need one—or that you don’t. What we can do is help you understand the condition of your vehicle so you can make an informed decision.

We believe in being completely transparent with our customers. Our mechanics inspect every vehicle and share those inspections with our customers so they can see exactly what we see and make their own decisions about what needs attention.

And when we do make a repair, we stand behind our work with a 3-year/36,000-mile warranty.

There’s no magic piece of paper that makes an older vehicle bulletproof. But knowing your vehicle, maintaining it properly, and understanding what you’re actually paying for can go a long way toward keeping those unexpected repair bills from becoming a complete surprise.

And remember: sometimes the best warranty is simply knowing what you're buying in the first place!

Until next time, keep the shining side up and the rubber side down!

Sincerely, Dave Neer of Solomon's Garage, located at 122 S Detroit Street in West Liberty.

Have a question for the mechanic? Send it our way. You might see it answered in next week’s “Ask the Mechanic!” Call Dave and Katie at (937) 887-0029 for questions or to schedule an appointment for your vehicle. Visit https://www.solomonsgarage.com/ for more information.