What You Should Look For When Buying An Auto Extended Warranty Plan

extended warranty plan

"How can I afford the extended warranty plan?" some auto buyers wonder. It is a natural consumer instinct to hunt for the best deals and the lowest prices, without getting ripped off. However, the internet has become one of the best places for the keen car buyer to purchase auto extended warranties, since there aren't dealer markups. It can be a daunting task, with so many scams and ramshackle, fly-by-night operations out there, but these tips will help you to make an informed decision.

First of all, be sure you're dealing with a solid company. See that they're listed in the Better Business Bureau or Web Assured, and that they have years of experience. For example, Warranty Direct has been in business for 26 years and NWC have been in business for 20 years. Read consumer comments and testimonials, check to see if the company services any dealerships and ask if they have a reinsurance program, which means they will be good for the money, even if many people are filing claims all at once.

You may have heard that it is next to impossible to find a warranty company to cover some cars. For example, forget about snagging a deal on your low-end Land Rovers (with poor quality, frequent and costly repairs). If you have a turbo engine in your Porsche or a really old car, then you may have a hard time finding an extended warranty plan as well. If you're stuck in this situation, you may want to consider putting ,000 into a long-term CD or money market account to save for repairs. If you have an older high mileage vehicle, then you can still find a reasonable deal through Warranty Direct, which covers vehicles up to 150,000 miles ("PowerShield Plan"). NWC also has a plan covering you up to 90,000 miles ("AutoXtra"), which covers components like the engine, transmission, drive axles, belts, water pumps, fuel pumps, rental car insurance and emergency roadside assistance. Before you visit the dealership to wheel and deal, be sure you arrive with an online quote in hand as a bartering tool.

There are some common lies that dealers tell consumers to get them roped into an extended warranty plan prematurely. Remember, they are salesmen and they're out to get the highest commissions and the highest interest, thus gaining them more profits. One excuse is that "the loan won't be approved unless you buy the insurance." Be aware that most auto extended warranties can be returned within 30 days with a 100% moneyback guarantee, so if you're coerced, you can always rid yourself of the plan if you find a better deal elsewhere. Another lie dealers tell is that "you must buy now or you can never get extended warranty coverage." This is simply not true. The problem with buying from a dealer is that they like to draw up slick pseudo-contracts without showing you exactly what's covered before you buy. If you look online, then you can go directly to the source and see what you'll be getting.