Reader Question Should I purchase an auto warranty from the dealership when I buy my new Hummer? Is this a waste of money or a good investment idea? I have heard horror stories about extended auto warranty contracts, are they true I wonder?

Sam,

Denton TX

Purchasing a vehicle with a good auto warranty can help keep your vehicle repair costs down. Purchasing an extended auto warranty is a way to guarantee peace of mind about the durability of your car or truck. Dealers frequently offer auto warranties with new and used cars as a way to bring in customers and convince them that they are getting a car the dealer stands behind.

Extended warranties begin after the manufacturer’s warranty expires, protecting your vehicle for as long as you own it. To avoid interruption in coverage, and to get the lowest price, you should purchase an extended warranty early. Extended warranties are warranties that cover your vehicle for an extended period of time. Loans can take several years to pay off, so why not get a warranty that lasts several years?