NewBuyer Blog » Auto Warranty

Buy Extended Warranty or Not?

Elizabeth Dennis — Mon, 25 Apr 2011 11:11:24 +0000

Car shoppers are consistently offered numerous things by dealerships upon obtaining car loans for new cars. One of the things offered are extended car warranties. Dealerships are known to offer car shoppers what is called vehicle service contracts also commonly called an extended warranty.

These look great initially but ensure that you always look at the fine print. Most of these contracts require you to bring your car back to the dealership for repair work. When you buy extended warranty plans from a particular dealership such as this, you might be left hanging if that particular dealership goes out of business.

Some will say that when you buy extended warranty plans, it’s equivalent to throwing your money out the window. Extended warranties are great if you need them, if you do not, it can prove to be expensive and a waste of money. Some car shoppers opt for extended warranties because they want peace of mind.

Make sure you review your coverage plan carefully and choose the right plan that fits your needs. It is obvious with the high cost of repairs that a coverage, which covers minor repairs that come along with normal wear and tear, is wise options.

Do not be lured into cheap extended warranty plans. It is true that you get what you pay for and you do not want to be stuck with having a cheap extended warranty plan that does not cover your repairs when you need it most.

Some people will buy extended warranty plans simply because it is the cheapest. This is not always the best way to go when seeking extra coverage for your vehicle, in fact, it could prove more expensive in the end if your vehicle breaks down a lot or you gain a major repair such as an engine or transmission and your cheap plan does not cover this.

Cheap auto extended warranties do not cover many minor repairs and when you do file claims with them, they will leave you in the cold. Some companies will require you to pay for the repairs yourself while reimbursing you later. You do not want to do business with these types of warranty companies. You want to buy extended warranty plans from a company that will take care of you when you need them.

It is wise to gain as much information on warranty companies as possible before you buy extended warranty plans. You can search the web or go one-step further and contact the Better Business Bureau. If you cannot find any information on a particular company, it is wise to buy extended warranty plans from that company.

You must be warned that there are chances when you buy extended warranty plans for your vehicle, no matter the company you buy it from, will not always cover everything that goes wrong with your vehicle. If you do not perform required oil changes and other required maintenance, your auto warranty company reserves the right to pay for any repairs, which are a direct result of your neglect of your car. Make sure you keep up on the required maintenance of your car.

Why Do You Need an Auto Warranty?

Elizabeth Dennis — Fri, 15 Jan 2010 23:00:24 +0000

A brief, but informative look a what exactly an auto warranty covers. Learn how an auto warranty is an agreement you make with the car manufacturer. See what parts are covered by the manufacturer and which ones are your responsibility.

The introduction from the resource: “There is nothing worse than getting your car repaired and hearing, ‘It isn’t covered under your auto warranty.’ Often, motorists are confused because they assume that certain repairs are covered.”

Source: AutoWarranties

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Extended Auto Warranties

Elizabeth Dennis — Sat, 19 Dec 2009 04:59:59 +0000

A helpful look at a half dozen answers to the question “Are extended auto warranties worth it?” View opinions from fellow new car buyers and a professional service technician.

Learn how extended warranties differ in terms of coverage, whether you should buy the extended warranty when you purchase the car or wait until the manufacturer’s warranty expires and see how important repair and reliability ratings are for making your purchase decision. These topics and more are covered in this insightful resource.

Source: Stretcher.com

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Choosing The Extended Warranty That’s Right For You

NewBuyer — Mon, 14 Dec 2009 02:00:59 +0000

A comprehensive, must-read guide to finding an extended auto warranty that is right for you. Learn the differences between a manufacturer-brand warranty and an after-market warranty. See what other factors to consider before choosing a warranty, including: ease-of-use (i.e. restrictions on where you can bring your vehicle for service), your own contract length and mileage limit needs, deductible type and more.

From the resource: “Obviously, price is an important factor in all of this, but you should remember that you can add the price of the auto warranty contract in with the financing of the vehicle, in most states, to help spread the cost out over the length of your vehicle loan.”

Source: Edmunds

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Extended Auto Warranty Q&A

NewBuyer — Sun, 13 Dec 2009 00:00:25 +0000

A straight-forward look at whether you should buy an extended auto warranty. Learn how extended warranty coverage often overlaps with a manufacturer’s warranty. View how to calculate the actual cost of the warranty coverage. From the resource: “I’m not saying you shouldn’t buy an extended warranty, I just want you to be aware of how they work. It may sound cheap, but you need to do a little math to get the true cost of the warranty.”

Source: About.com

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Warranties and Service Contracts

NewBuyer — Thu, 10 Dec 2009 21:26:18 +0000

An in-depth look at auto warranties and service contracts. Learn how important it is to read the fine print on a warranty contract and ask exactly what is covered and by how much. View advice on how to keep your warranty valid, research hidden costs and ask for available value-adds.

From the resource: “Some lenders require an extended warranty. Make sure you know if this is the case in a vehicle you are considering. If it is not, the choice is yours. If it is, find out exactly what sort of extended warranty is required so that you are not sold more than you need.”

Source: Bankrate.com

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Extended Auto Warranty Glossary of Industry Terms

NewBuyer — Thu, 10 Dec 2009 15:27:15 +0000

A comprehensive glossary of extended auto warranty industry terms. The alphabetical listing provides detailed definitions for terms such as bumper-to-bumper, corrosion warranty, diagnostics, exclusionary policy, powertrain coverage, repair facility and more. A defintion of a re-insurer from the resource: “Also known as a re-insurance Company. An insurance company that issues a policy to guarantee, or re-insure, the obligations of the extended auto warranty provider.”

Source: Consumer Automotive Research

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Glossary of Extended Automobile Warranty Terms

NewBuyer — Tue, 08 Dec 2009 17:00:33 +0000

A complete glossary of extended automobile warranty terms. Learn the definitions for phrases such as certified car, corrosion warranty, emissions warranties, mechanical breakdown insurance, power train warranty and more. See additional buying tips for many of the terms.

As an example, the resource defines wear-and-tear: “Wear and tear protection is the highest level of coverage one can purchase. It is a much broader level of coverage than the mechanical breakdown only plans offered elsewhere.”

Source: Warranty Info

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The Secret Warranty

NewBuyer — Sun, 06 Dec 2009 04:02:52 +0000

An insightful look at after warranty assistance (AWA) programs offered to loyal auto manufacturer’s customers. Learn about the program’s eligibility requirements and see how payment responsibility is split between the manufacturer, the dealership and the car owner.

From the resource: “Loyalty to an auto dealer could pay off in a situation where you are outside the range of the factory warranty and have been a faithful, dealer-service-oriented customer. You will most likely have to ask to get assistance, but isn’t it worth your time to inquire about the possibility of AWA? The worst that could happen is you are declined assistance.”

Source: Edmunds

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My Story – That Auto Warranty

NewBuyer — Thu, 03 Dec 2009 23:32:36 +0000

An eye-opening story from an extended auto warranty buyer. Learn how important it is to read the fine print of a service contract and how difficult it may be to cancel one. See why you should thoroughly research the provider before purchasing the extended warranty. Advice includes having a mechanic review the agreement and contacting the Better Business Bureau to view any complaints filed against the provider.

From the resource: “Don’t rely on your dealer to be straightforward with you. He may be benefiting from the sale more than you know. The fact that there is a lot of small print on these agreements should make us all very cautious.”

Source: Stretcher.com

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