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Extended Warranties: Ask, Who Holds The Warranty? Posted by carsandtrucks on Tuesday, November 06 @ 06:59:23 PST In most cases I am a strong advocate for buying an extended warranty. The only time I can think of that an extended warranty doesn't make sense is when you trade new cars every 3 or 4 years. There are several types of extended warranties. Some are admimistrated by the manufacturer and others by third party companies. I am partial to the manufacturers extended warranties as they tend to provide more hassle free coverage. These extended warranties are only available from franchised new car dealers. This does not mean that the only extended warranty franchised dealers sell are backed by the factory, so make sure you ask who holds the warranty. If it is not the manufacturer then research the warranty company before committing to buy. Extended warranties do not cover everything, even though you will hear a salesman assure you that it does. Maintenance items and normal wear and tear items such as brakes, hoses, and spark plugs are not covered EVER. Always ask for documentation of what parts are covered by your plan. Extended warranty plans are available in several levels of price, parts coverage, and time and mileage coverage. Your decision of which amount of coverage to buy depends on your how long you plan on keeping your car, and what type of equipment is on your vehicle. If you are buying a car that is loaded with all the latest electronic equipment you would want assurance your extended warranty is covering failures to these items. Most extended warranties have a deductible. The deductible is charged for each repair visit for a covered repair. Extended warranties are much like your health insurance plan. If you never use it you tend to think you are wasting your money to have. However, when the service advisor tells you that the transmisson repairs needed on your vehicle will be $2500.00 and your responsible for only $50.00 because you have an extended warranty you will be glad you bought the coverage   Sales & Service Tips Random Photo

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