Getting an extended auto warranty can be a complex and confusing purchase. However, there are some general tips and tricks to avoid the potential pitfalls brought on by questions about manufacturer's warranties, car dealerships, pricing and fine print. An extended warranty can be great for the car, and doesn't have to break the bank, either.
The best advice that can be given to people who don't want surprise vehicle expenses is to buy an extended auto warranty. A manufacturer's warranty may seem like enough, and many people delay extending to the point that the coverage expires. Unfortunately, manufacturer warranties tend to cover the years when the car will run at its smoothest. Most promise compensation for factory parts that break down or malfunction. They don't cover wear and tear, and the time is limited. Most cover the car between 35,000 and 50,000 miles, or three to five years. After that period of time, the car is much more likely to experience problems, and therefore should be covered more extensively.
New and used car dealerships often try to bully customers into buying an extended warranty from the dealer and also at the same time that the car is purchased. Neither of these actions is necessary. In fact, car salesmen make a large percentage of their commissions from the extended warranty. That means that their warranties can cost twice as much as a warranty purchased from an online broker or private company.
Pricing is flexible, so it is important to do research into the car's history, age and price. From there it is possible to estimate potential repairs and their varied costs. An extended auto warranty can be modified to fit the need of the car, so that it doesn't have to be terribly pricey. While some extended warranties are very expensive, these tend to be the warranties that cover major breakdowns, wear and tear and over heating. Not all policies need to be that extensive or specific.
Pushy dealers and salesmen want customers to believe that extended warranties are fixed in both coverage and price. In reality, a vehicle owner should just be aware of future problems with the car and have a rough idea of how long they want the car to be covered. Without a warranty, unexpected malfunctions or accidents can cause a terrible, unexpected blow to people who are already in financial straits.
no definitive extended auto warranty that everyone should buy; every policy and contract is going to depend on the driver's financial situation, how long they are going to own the car and how much repair the car is estimated to need. However, there are some common misconceptions and beliefs that are widely held, and it is important to know the facts when purchasing extended coverage.
The belief that double coverage is an issue is widespread on the internet. The cautious researcher won't be able to help seeing that myth splashed on many warranty websites. These places claim that once you purchase an extended auto warranty, it goes into effect immediately, whether you have still have the manufacturer's coverage or not. Double coverage is actually not really an issue, since an extended warranty's price mostly depends on how new the car is and how many miles it has on it. The coverage is designed to extend
the original warranty, not to uselessly overlap it. In fact, the earlier a driver buys the extended warranty, the cheaper it will be.
It should come as no surprise that dealers can be pushy, but many new and used cars salesmen will also downright lie when it comes to extended warranties. They will say that the warranty has to be purchased with the car, claim that there is only one kind of warranty, and that the contract cannot be reviewed before it is signed. None of these things are true. It is essential to always review the warranty before allowing it go into effect, to get a written copy before leaving, and to get the coverage that best suits the driver and vehicle.
One thing to look out for with an extended auto warranty is the driver's maintenance requirements. In one sense, maintenance requirements are nice. The driver is given periodic notices about what processes need to be done and when. These are small things that keep the car running, like oil filter and coolant changes, and must be done out of the driver's pocket. Beware contracts that have demanding requirements or large amounts of maintenance. When a real break down occurs, it could be too easy to blame it on lack of upkeep.
The most important thing to know when shopping for extended warranties is that personal research and preference is important. Year, make and model will change what policy the car and the driver need.
When it comes to insuring against future break down, there is no hard and fast set of instructions for length of coverage or pricing on an extended auto warranty. Different vehicle owners will have different standards. Some drivers are willing to pay more for total security and peace of mind, while others would rather take some repairs as they come. Similarly, an extended warranty's policies should be modified according to the car's year, make and model.
Before purchasing an extended warranty, a vehicle owner should always decide what their spending cap is going to be. When purchased as the manufacturer's warranty runs out, an extended auto warranty is usually paid for as one large lump sum. Some people will be willing to pay more than others. Someone who pays for a five year coverage at 1500 dollars total is essentially paying hundreds of dollars a month for a sense of security. Some drivers may prefer to take the risk and leave out coverage of certain parts or breakdowns in their policies. Other drivers may prefer to have everything from major malfunctions to seals and gaskets covered so that there is never a surprise expense.
An easy way to customize an extended warranty policy is to check the vehicle's statistics online. Many broker websites offer free cost estimates; all the customer has to do is plug in the year, make and model. These factors affect how much the brokers will charge for the extended auto warranty. Research will also reveal what kind of problems, malfunctions and part replacements that the car is prone toward. Once the vehicle owner knows what kind of issues other owners of faced, they can reasonably estimate the most important issues to cover in their extended warranty policy.
Some drivers want bumper to bumper coverage, but covering every possible issue is not necessarily the best idea. That can end up costing hundreds and hundreds of dollars a month for repairs that may never crop up. Instead, it's important to research the car's strength and weaknesses and to discover the best balance when it comes to payment installments versus repair coverage.
A car, new or used, represents a huge investment of money rivaled only by payments on house mortgages. Cars, more than any other any investment, tend to malfunction at the worst possible time. Repairs could pop up for wear and tear, overheating, accidents or part malfunction. An extended auto warranty reflects the concern over losing a vehicle to breakdowns or malfunctions, and the potential costs that could break the bank of the average driver.
An extended warranty is the best way to ensure that a sudden breakdown of a vehicle doesn't result in the driver getting stranded. Drivers who can't pay for repairs have no way to go to work, pick up groceries, or take their children to school. An extensive warranty that covers breakdown and wear and tear means that the driver will not have to pay for the labor fees that come with repair bills--fees that can end up being anywhere from 60 dollars an hour to over 100 dollars an hour. In fact, aside from regular and basic maintenance, drivers with the best coverage won't have to pay for repair bills at all.
Different policies have different coverage, and obviously the price will reflect what is covered under the extended auto warranty. Bumper to bumper coverage tends to catch most problems, but it is important to go over the contract to see what is and is not covered before assuming that all repairs will be taken care of. Named and exclusionary coverage are also extensive, naming what is not covered, rather than what is. From that point on there are also policies that only cover mechanical breakdown, ones that cover wear and tear, and ones that include roadside assistance. All of these allow security and peace of mind.
As any car owner knows, the question is not whether a car will break down, but when it will break down. With good extended warranties, the vehicle owner knows that they are taken care of when something goes wrong. Instead of being caught with an empty bank at the worst possible time, low monthly payments are made to ensure that the car stays protected, maintained and in good condition. Now that's a good investment.
The best extended auto warranty is the one that has to be attained with a little work and a firm knowledge of the best kind of coverage for the vehicle at hand. There are four basic steps to finding the policy that suits the driver and car and that also costs the least amount of money in out of pocket expenses. The essential steps are: vehicle research, market comparisons, choosing a dealer, and calculating what time the coverage should begin.
1) Vehicle Research: It's always important to know what kind of coverage best fits a vehicle. Year, make and model can be plugged into search engines to calculate what the car will need over time. Based on reviews and other users, it's possible to know which cars are lemons that are going to need constant care and which ones run smoothly for a long time. Some cars will have certain parts that always need to be replaced, while some will only break down when the car itself malfunctions. Once the driver has the right information about the car, they can reasonably estimate the amount of coverage they need to purchase.
2) Market Comparisons: Comparison shopping is essential to getting a good deal on an extended auto warranty. Most dealers admit that they will quote the highest rate that allows for the most coverage. If the driver knows what amount of coverage they want, they can get at least two quotes that will give an idea what the average broker will ask for as payment.
3) Choosing a Dealer: The dealer who sells the driver coverage gets a much better deal on the policy when they buy it from the factory. It's best to assume, when bargaining with the salesman, that he got it for as much as half of what he is asking. While he will try to get full price, it's important to always offer a low price and not to be concerned with low balling. Offer half of what the coverage is priced at, and be willing to split the difference and pay an amount somewhere in the middle.
4) Calculating Timing: This depends on the driver's financial situations. Some people prefer to buy the extended auto warranty when they buy the car, meaning that it becomes a small monthly payment. Other people don't mind paying in one large lump sum that starts several years after the car was purchased.
An extended auto warranty may seem like an unnecessary expense when coupled with the cost of buying a car. However, it isn't always possible to know when a breakdown is going to occur, what will be damaged, or how much money it will cost to fix. An extended warranty is insurance for future breakdown and repair that often ends up saving more money than it costs.
The cost of an extended warranty inevitably varies on the amount of coverage required. The most basic and least expensive plans simply cover mechanical breakdown. This can be useful in many circumstances involving accidents or sudden part failures. Since many mechanics charge around 100 dollars for labor alone, the extended warranty can be a huge money-saver. However, normal wear and tear is itself an extensive category in vehicle repair and is not covered by the mechanical breakdown extended auto warranty. While extended warranties cost more, it ends up being infinitely easier to get the entirety of the repair bill covered by the warranty broker, rather than having to pay out of pocket.
The best warranties are the ones that leave no room for interpretation or loopholes. Exclusionary extended warranties are the best way to plan for any future automobile troubles. They tend to cover not only mechanical breakdowns and normal wear and tear, but also emission systems, seals and gaskets, and occasionally even problems that result from overheating. An exclusionary extended warranty lists the problems that are not covered by the broker, rather than listing the issues that are
covered. The list of excluded problems should always be carefully perused before purchasing the extended auto warranty. The most comprehensive exclusionary extended warranties are the bumper to bumper warranties. These warranties tend to cost the most, but they cover the largest amount of issues and list the ones that cannot be paid for through the broker.
Planning for the future means knowing not only coverage, but also the repair facilities that are the most easily accessible. Through the extended auto warranties, repairs can only be done by the broker's specified service facilities. Customers who do a lot of traveling will want to purchase an extended warranty where repairs can be done in a wide variety of mechanical shops.
An extended auto warranty removes the fear and uncertainty over sudden or unexpected breakdowns and mechanical problems. The better the coverage, the easier it is to reasonably plan for the future.