 Extended Warranties: Ask, Who Holds The Warranty?
Posted by carsandtrucks on Tuesday, November 06 @ 07:59:23 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
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