There is a lot of misinformation about the general state of the auto warranty business out there. The internet is full of articles that offer all sorts of information. Some of it is correct, some of it is blatant lying, and some of it is uninformed rumor spreading. But there is one big myth out there that needs to be dispelled, and that concerns the extended warranty that you will be offered when you purchase a new car from a dealership.

Of course, we all know that the world of auto sales is a highly competitive one. We won’t insult the hard-working members of that profession by lumping them all together, but sadly, there are some very shady characters out there that ruin the reputations of the rest, and give us our impressions and stereotypes about sleazy car sales people.

It is also no secret that car sales people make the bulk of their commissions on financing. This can mean big money to a sales person, so they will push the options that will be on the brink of what is most useful to the customer, to the furthest edge of what makes them the largest commission.

But where some sales people cross the line, in regards to warranties, is when they propagate the myth that an extended warranty is something that can only be purchased from the dealer, and only at the time you make the initial purchase. This is completely false.

While you can certainly make that purchase, it may not be the wisest. The costs, when bundled into your financing package for the new car, may be considerably more than if you were to shop for the extended warranty independently. A dealer usually works with only one finance company and one warranty provider, so there is no comparison shopping you can do here.

The other downside to buying an extended warranty at the time of purchase is that your extended warranty may kick in right away – so you will be double covered. If your manufacturer offers a three year warranty, and you purchase an additional five year extended warranty, you will be covered for a total of five years, not eight.

So be aware when you go in to make that purchase of a new or used car from a dealership. There is a convenience factor to purchasing the auto warranty at that time, and yes, the costs will be rolled into your financing, so you won’t have to make a large payment. But it could end up costing you, further down the road.

Car leasing may be a good option for those individuals or companies that want to have a new car but want to save some of the money it costs in full car ownership. Car leasing is a way to rent a car over a specified period of time. The car is not owned by the person or company leasing it at any point and at the end of the lease, the car is returned to the dealership or the car leasing company.

There is a deposit associated with car leasing. This initial deposit is non-refundable and is simply a way for the leasing company to protect themselves. After the initial deposit, the person or company leasing the car will pay a monthly amount that has been agreed upon by both the individual and the car leasing company. The term of the lease is usually approximately two or three years however, it is possible to lease a car for a year or even less.

Leasing a car is not the same as taking out a car loan. The largest payment that is required is the initial deposit and that is usually only about one, two or three months total of the monthly lease payments. This allows the person or company leasing to keep their money in a high interest bank account and to simply make the lease payments as part of their monthly living expenses. This can be especially useful to companies that want to lease a company vehicle. They can then take the payments out of operational expenses rather than out of capital expenses.

Because the lease will usually be less than three years, the car will always be covered under warranty and it will not require an MOT. This means that the person or company leasing the car will not need to worry about major repairs. The only things the person leasing the car needs to worry about are routine services such as oil changes and consumable items such as tires. These items are not usually a great expense during the first three years.

Another benefit to car leasing is that a person or company may change their cars every few years. This is beneficial for many reasons. The first reason being that the individual or company will not need to worry about their car breaking down all the time as it gets older and becoming more of a burden rather than an asset. Another benefit to leasing is that the individual or company will get a new car every two or three years.

Changing cars every few years is made so simple by car leasing. It is not necessary to try and sell the car before another car is obtained. Instead, one car is simply given back to the leasing company in exchange for a different car. It can be lots of fun to try out different cars all the time and will save the hassle of major repairs and grief.