Selecting An Extended Warranty Service Requires Careful Thoughts

used car warranties

When consumers shop around for a pre-owned car deal, they may wonder what the difference is between a traditional automobile warranty and extended warranty service. A traditional warranty, or "manufacturer's warranty," as it's sometimes dubbed, is included in the purchase price of the vehicle. These warranties vary greatly between makes and models, ranging from 3 year/36,000 mile warranties to 7 year/100,000 mile warranties. Also, not all used cars come with manufacturer warranties attached. Extended warranty coverage is purchased through a third party at a separate price. Here, consumers will come up against different options and levels of coverage, so it's important that they do their research before arriving at the car dealership. Checking the internet for an extended warranty quote or two is probably a good idea.

First, consumers should check to find out who is backing the extended warranty service. Is it an independent company or the vehicle manufacturer? Generally, manufacturer-based used car warranties are ideal, known for the easy-to-use guarantee. With an after-market extended car warranty, the owner will need to read the stipulations to ensure that everything is covered.

For example, some companies require that owners call before the work is done. Some companies require regular oil changes and fluid top-ups for work to be covered. Depending on the arrangement, sometimes the company pays the auto mechanic directly, whereas other times the warranty company pays the car owner back later. Reading and understanding the agreement is crucial in preventing unpaid claims.

Secondly, consumers should ask if there is a deductible. For some people, paying a fixed amount per visit or per repair is a relief. For others, this deductible may still run up a hefty bill that is unacceptable. Sometimes, an extended warranty program will have a "per visit" deductible, which is one payment per shop, no matter how many parts are repaired. By contrast, a "per repair" deductible applies to each and every serviced part. While a "0 deductible" sounds like small potatoes, it could add up if the fine print says it's a "per repair" deductible. After getting an air conditioner, fuel pump and alternator repaired, suddenly a 0 bill may appear. The extended warranty service contract should be looked at carefully. Many warranties have a 30 to 60 day money back guarantee, so some consumers purchase it and have their lawyers look over it later to be sure it's fair.

At the end of the day, it's up to the owner whether or not extended warranty service is needed. Some people are perfectly comfortable setting money aside to save for possible repairs, whereas others want to feel that they can call on someone to help, no matter what happens. Extended warranty plans may not be essential for every computer, iPod or blender purchased, but for a car worth ,000 or more, it's certainly a smart consideration for that extra peace of mind.