Auto Warranty Facts
- At September 3, 2011
- By carservice
- In Auto Warranties
New cars right now cost an average of $27,000 – that takes both low cost and specialty cars into account, as well as the mid-price models that most people purchase. At this kind of price, people expect their vehicle to work correctly and last for many years. An warranty usually comes from the dealership with a brand new car, but many people are opting for an extended warranty to add more protection to this significant investment. There are some things to keep in mind when shopping around for an extended Auto Warranty, though.
Is an Extended Warranty Necessary?
Around 30% of vehicle owners are buying extended car warranties right now. This is to guarantee that they will not have to pay for repairs within a certain number of years or miles. If you put more than 10,000 miles on your vehicle annually or intend to use your vehicle for many years in the future – that is, you won’t be trading it off within just a few years – an extended car warranty would be a great way to protect it.
Finding a Warranty Provider
There are three basic avenues to purchase an extended warranty through: the manufacturer, the dealership, or independent providers. Each has its own benefits and disadvantages. Buying an extended warranty through the vehicle’s manufacturer means that the factory will repair your vehicle anywhere nationwide without having to haggle over the quality of parts or prices. However, this avenue usually has a higher cost up front. Purchasing an extended warranty through the car dealership provides a lower up front cost and the convenience of buying the warranty plan at the same place the vehicle was bought. It also means that you might end up with that dealership as your one and only service location, though. Buying an extended warranty via an independent warranty provider usually has the lowest costs and covers repairs through many dealers and local auto shops. Some of these independent providers are short-lived, though, and may not exist five or ten years down the line. It is important to decide which way is right for your unique situation.
Know a Good Warranty When You See It
If you want a bumper-to-bumper warranty, which provides the most coverage but also costs the most, everything on the vehicle will have coverage in the event that you need repairs performed and your deductible payment will be quite low. If you choose a warranty that has a higher deductible for each repair, it might make your up front cost lower, but keep in mind that you will pay a great deal more on repairs. Always make sure that your warranty is renewable as well as transferable.
Reading the Fine Print
Be sure to read any fine print that might apply to the warranty you are considering – you don’t want to get taken by surprise by a bit that you did not pay attention to when needing repairs by finding out that those particular repairs are not covered. Also find out whether you will be required to pay cash up front and be reimbursed later. Every warranty plan is different and each warranty will have different requirements and stipulations.
Take care that you are not pressured into purchasing a plan by anyone, even if it the dealership where you are buying your vehicle. An automobile is a big investment. Be aware of your options and shop around. While extended car warranties offer a great deal of peace of mind, you must first be comfortable with what it provides.
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