Extended Hybrid Warranty Woes - To Purchase Or Not To Purchase?

That is the question!

People have a mass of preconceptions about hybrid cars. Some of these stem from the first few years of hybrids on the market, where battery problems clouded consumers' joy about these fuel efficient cars finally being attainable. With Lexus, Toyota, Mercury, Honda, Ford and other makers coming out with better and better hybrids each year, some of the kinks about these mileage masters are finally being worked out. The more hybrids people purchase, the more that people trust that hybrids will work for them too. So, the question is whether manufacturers are offering adequate warranties for these vehicles. Are makers compensating for consumers' fears by placing excellent warranties on their hybrids, or are they just placating us with enough to make us not think about junking it after eight years or 80,000 miles? A good starting place to start when considering the extended warranty is that most hybrids offer a general warranty on the first 36,000 to 40,000 miles, then 80,000 miles on the battery, to lure in battery weary buyers. A further investigation into these futuristic vehicles should show that, much like an extended warranty for your regular car, this can be a gamble.

The real key is considering what items are covered on the warranty. The major concern about hybrids is whether the battery is going to need replacement, even with loving attentiveness paid to how you drive yours. New batteries for hybrid vehicles have been known to be as high as $5,000. A clever way out of this however, is that you can often replace the modules of which the hybrid battery is composed of for less than $150. Knowing that the warranty for your hybrid completely covers the battery under the manufacturer's warranty for 80,000 miles may be satisfactory enough. Others, who drive a lot, see themselves reaching 80,000 in just four years or less.

Dealerships are often making a bundle on extended warranties. Sometimes they run as high as $1,400. Considering that there is usually a deductible on extended warranties, you may find that many repairs that you would want the warranty to cover would be under a $300 deductible anyway. Many people decide to buy the extended warranty because they want to ward away extra bills down the road. Unfortunately, the deductibles often make that dream unattainable, after all. If you don't plan to keep the car long past the built-in warranty, then the extended warranty is probably not the right way to go. However, if not having your hybrid a long time includes selling it; an extended warranty can be a great selling point. If the extended warranty option being offered by your dealership remains confusing to you, then consider giving yourself some time to think it over. After all, many people do not even purchase the extended warranty on their vehicles until the manufacturer's is getting ready to expire. If you drive a lot, then that will still give you about four years to think about it.

The way that hybrids are improving second by second is daunting to their owners. An extended warranty can give some peace of mind if you are worried that your old hybrid model will be obsolete in four to eight years when your warranty expires. Although, you may never use it, it may save the day when a transmission or battery gives out at the most inopportune time. Many people keep a credit card with a high limit for these situations. This way, the money goes straight to the repair, rather than being built into the price of your car and never knowing for sure whether or not you will use it.

If an extended warranty makes you feel better about the fact that you already feel as if you have taken a risk by buying a hybrid, then this is probably the best option. The most important thing about buying an extended warranty is to try and haggle with the dealership. Buy a warranty which pays up-front so you don't feel like you don't even have one at all. Try to get one with a low deductible for the same reason, so even small repairs are covered automatically. Where prices have already been cut lean on the general price of a hybrid, an extended warranty can spare to be cut down.