When buying a car from a dealer, whether new or used, you will probably be offered an extended car warranty. Should you buy it? Our suggestion is that you consider whether extended warranties are a good idea before you go to the dealer. Then you aren’t rushed to make a decision on-site. Let’s take a quick look at them.
It’s just insurance
Let’s demystify these things first. Essentially, extended warranties are just insurances. Like any other insurance policy, it is there protecting you until you need it. Studies show that on an average people pay around $1500 for an extended warranty. Yes, that’s a lot of money but car repairs can be very expensive today.
What do they cover
It depends on the warranty. Some warranties are comprehensive and cover the vehicle from bumper-to-bumper regardless of what occurs. Less expensive policies only cover limited basic components. The decision of what type of policy to buy is really a function of the level of risk you want to absorb.
Who is behind them?
There are two primary institutions that offer extended warrantees. The first is the car manufacturers themselves. The policies they sell essentially extend a car’s warranty beyond what they offer ordinarily. Since this type of extended warranty comes from the car makers themselves, you get a familiarity of your car’s brand along with the extended warranty. This can be important to some people.The other groups are third-parties (“Insurance companies”) that are in the extended warranty business. These third-party policies can usually be purchased from a car dealer or privately on the web.
Which is best?
We asked the sales team at Marlow Motors of Front Royal, a Chrysler, Dodge, Jeep, Ram dealer in Front Royal, VA, for their opinion. They feel that customer satisfaction is usually better when the extended warranty comes from the automobile manufacturer. This is because they usually specify that repairs be done using factory parts, factory trained dealers and certified mechanics. Also, many manufacturer warrantees can also be transferable when you sell your car.
Third-party warranty companies can be quite reputable and the policies they offer may be more affordable and comprehensive. That being said, customer satisfaction is usually a little less than those that opt for the car manufacturer extended warranty.
When to buy one
Although extended warranties are available through the car manufacturers, one does not need to choose that day only, but any day before the warranty that was originally on the car runs out. The price of the warranty depends and varies widely on the car, the coverage plan but on an average, it comes down to $1200.
What makes a good warrantee?
A great auto warranty should provide extensive, affordable coverage with cooperation with quality automotive parts suppliers. Also, in finding great auto extended warranty, one must be able to understand the simple and basic coverage extending the coverage and protection of one’s automobile vehicle, since this will extend their vehicle’s lifespan years effectively.