Truck Articles

When buying a new or used car from a dealer, it is likely they will ask the customer about purchasing an extended auto warranty. They make it sound like a reasonable thing to do in case something should happen to the vehicle. These types of warranties can be quite expensive and are usually a better deal for the dealer than the customer.

As car makers have made advances over the years, cars are lasting longer all the time. Transmission will go for at least one hundred thousand miles, while an engine can last two hundred thousand. This time frame will outlast the extended warranties expiration dates. Now the consumer has paid for something they never had a chance to use and the money spent is gone.

These warranties are pushed by the car dealers for one reason. They make more money off the warranty than they do from the sale of the card. Most often the coverage is not even needed. It will likely be many miles down the road before an automobile needs any of those costly repairs.

The other problem with extended warranties is that they usually do not cover routine problems. Most of them cover what is called power-train repairs. These include transmissions and engines, but brakes that are failing or the exhaust that is smoking will ultimately be the problem of the owner.

Another problem to be aware of is that warranties purchased by a third-party company are more often denied even if they should be covered. They will find any loophole they can to avoid paying for the costly repair. Of course, this is after they already have the money for the coverage. And if they do pay, most likely there will be a deductible that will have to be paid first. Often times the deductible is based on per repair, not visit, so if there is more than one problem, a deductible is required for each item.

The best advice is to do some research. Look for vehicles that have high maintenance rankings. These cars usually are less expensive and offer a long manufacturers warranty which comes at no cost. That way they will be covered for a very long time.

There are times when purchasing an extended auto warranty may be the way to go. If the car is a new model that has not had a chance to be proven mechanically sound, the purchase may be warranted. But before purchasing it, wait until the manufacturer warranty if almost up. Then do not be pushed into purchasing from an independent company. There are factory-backed warranties, and while they are a little more expensive, they are more likely to pay out if needed. Remember, dealers probably make more on the independent warranties, so they will push them. Finally, always get several quotes before deciding. Prices will vary from dealership to dealership, so be sure to find the lowest price.

auto warranty

Looking to find the definitive source of information on auto warranty?

Apr222011

Tags: auto, automobile, cars, Trucks, vehicles

Trackback URI | Comments RSS