When buying a car, whether new or used, from a car dealer you may be offered an extended warranty. The question is should you buy it? Our suggestion is that you consider this before you go to the dealer, then you aren’t rushed to make any decision on-site. Let’s take a quick look at some of the salient points.
Let’s demystify these things first. Extended warranties are just insurance policies for a car. 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 and yes, that’s a lot of money but car repairs can be very expensive.
What the warranty covers depends on the warranty. Some warranties are comprehensive and cover the entire vehicle regardless of what occurs. Less expensive policies usually only cover limited basic components. The decision of what type of policy to buy is really a function of the level of risk you are comfortable with.
Who is behind them?
There are two primary institutions that offer extended warrantees. The first are the car manufacturers themselves. The policies they sell essentially extend a car’s warranty beyond what the factory warranty offers. 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.
The other groups are third-parties (Independent 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 Len Stoler Chevrolet of Westminster, a local Chevrolet dealer in Westminster, MD, for their opinion. They feel that customer satisfaction is usually better when the extended warranty comes from the automobile manufacturer. This is because they typically specify that any repairs be done using factory parts by factory trained mechanics.
Despite what you may have heard or read, 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 $1500.
What makes a good warranty?
A great auto warranty should provide extensive, affordable coverage and specify quality automotive parts. 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.