Modern day vehicles contain a lot of technical and sophisticated features. For car owners who are keen to keep their cars for a longer period of time, a thorough maintenance procedure must be followed to keep your car going.

If you finance a new car financing, you’ve likely invested thousands of dollars on the vehicle, and even though extended warranties are not cheap, you can ensure with the proper warranty that the technological and mechanical features of your car are protected in case of damage or dysfunction. In the end, an extended car warranty can actually save you a lot of money.

Here are some pros of buying an extended warranty:

1. Flexibility

Car extended warranties on an aftermarket vehicle can be adjusted to fit any situation whatsoever. For example, if you commute a lot, you can find a warranty where the car is protected bumper-to-bumper, including the powertrain warranty, to cover all repairs without having to pay the additional coverage to pay for mechanics in a pinch.

2. Covers pricey technology

Whether you have taken a car loan for car financing or have paid for a new car outright, your new vehicle likely contains a lot of expensive electrical wiring, hi-tech installations, and computerized equipment. When these systems fail, a proper diagnosis and repair involves a lot of expenses. Extended warranties can cover all these costly repairs.

3. Dealers take care of the paperwork

Buying the extended warranty from a car dealership means it’s backed by the manufacturer. Though this tends to be a little expensive, buying extended warranties from dealers saves the owners from all the paperwork. Instead, it’s completed by the dealer and the dealer is directly paid by the manufacturer for all the services rendered. These dealer-backed warranties also allow the owners to get their cars repaired from any dealership across the country.

Here are some cons of buying an extended warranty:

1. Expense

Buying an extended warranties is like placing a bet with the warranty providers, in which one of you will win. You will win if the cost of repairs if they equal more than the cost of the extended warranty, but the warranty provider will win if the repairs are low.

2. Not all repairs are covered

Most extended warranties do have limitations, which means all the repairs are not covered by the warranty. So, before signing the fine print of the contract, get a list of exclusions of the parts of the vehicles that are not covered by the warranty.

3. You may never need it

Buying an extended warranty is like a buying medical insurance. You may never need it in your lifetime, but if you need it, you get the coverage as per the contract.