Buy Extended Warranty or Not?
Posted by Elizabeth Dennis on April 25, 2011 | No Comments
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.
Tags: Auto Warranty
Filed Under: Auto Warranty, Newbuyer's Own
