Should You Get An Extended Auto Warranty?

Should You Get An Extended Auto Warranty?

Are
you considering an extended new car warranty or used car warranty? Are
you uncertain of the value of purchasing such a warranty?

It is
important to understand that an extended automobile warranty gives
protection beyond the dealership warranty. On top of other features and
benefits, an extended warranty allows you the flexibility to have your
vehicle repaired at any licensed service center in your area.

In addition to repairing mechanical breakdowns, these extended warranty benefits and options are likely to include:

a) 24 hour Roadside Assistance up to $100 for a specified number of occurrences,

b) Car rental benefits if the car is towed to a repair facility,

c) Trip interruption benefits,

d) Additional towing,

e) Other services such as lock out, replacement of oil, or other fluids, and battery boosts.

Car
buyers often know nothing about auto warranties. They think they are
getting a magic golden wand that will pay for anything that goes wrong.
Not true!

Read the fine print, as even with the best extended
auto warranty service plan, there are exclusions to what is covered.
Often you will find so many items excluded from the warranty repair
that you will wonder what exactly is covered other than the perks of
roadside assistance, car rental, and other emergency services.

Many
websites give tips on how to buy an extended auto warranty online.
Investigate carefully, but remember many companies sell warranties.
Dont buy from the first company you investigate.

Check out
several, making sure the one you settle on is a financially secure
company that administers their own warranties and keeps high enough
balances to pay all repair expenses that stretch into the future. Some
places where you may obtain warranties from are warranty brokers, and
insurance groups.

While your car dealership may offer an extended
car warranty, it is often in your best interest to purchase it
elsewhere as the dealership many times will employ the warranty as a
means to increase their profit by including it in the financing of the
vehicle. This translates to your paying interest on the warranty,
increasing your overall costs than if you purchase the warranty from an
outside company.

Check a credit union, other insurance dealers,
or internet sources for their deals on extended car warranties. Buyers
usually can negotiate the price of a warranty. A rule of thumb is that
buyers may have a margin of one-third to negotiate the warranty.
However, the less age and mileage your vehicle has, the less an
extended warranty will cost.

Before you buy, read service
contracts with the manufactures warranty. These often provide coverage
for three years or 36,000 miles or whichever comes first.

If you
regularly trade your new car every three years, you most likely will
never need a new car extended warranty as new cars tend to be fairly
trouble free during the beginning years. However, if youre unlucky in
life, love, and automobiles, then purchasing a new car warranty would
be a smart move.

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