Investing in an auto warranty for your vehicle is a smart idea. Cars tend to break down at any moment and the cost of repairs can be very expensive. A lot of people can’t afford all of their car repairs due to how costly they tend to be. Therefore, purchasing new car warranties or used car warranties is the decision most people tend to make to avoid having to pay for all of their vehicle repairs. Auto warranties can be bought through the car’s manufacturer, a local car dealership, or through an aftermarket auto warranty company. Most new cars will have a factory warranty included, but when that warranty ends you can always purchase an extended warranty.

When purchasing a warranty for your car, keep in mind that there are two different kinds of warranties you can invest in. You can either purchase a bumper-to-bumper warranty or a powertrain warranty. A bumper-to-bumper warranty will cover the cost of repairs on most of the car’s parts, but excludes coverage on parts that need replacement due to scheduled maintenance. A powertrain warranty covers the cost of repair on the moving parts of the vehicle. For example, it will provide coverage for parts such as the transmission and the engine.

Purchasing a warranty for a new car is smart because even if the car has mechanical problems, you still need to make your monthly payments, but the cost of repairs will be covered by your warranty. Having to pay for both repairs and monthly payments can be heavy on your wallet, so in the end a warranty will pay itself off by saving you money on repairs.