 Car Warranties: Should I Buy The Extended Warranty?
Posted by carsandtrucks on Monday, January 14 @ 06:56:52 PST
Many of my customers ask me if they should buy an extended warranty for their new or used car or truck. My answer is always the same. Yes, definitely buy one, but buy the right one. There are more warranty companies and warranty packages then there are scales on a fish. You have to be sure you are buying a warranty that is going to provide you the best coverage for the time and mileage you intend to drive your vehicle. It would not do you any good to buy a warranty that is going to give you coverage up to 100,000 miles if you replace your vehicle after 50,000 miles of driving. Another thing I caution people on is
be careful of the term “bumper to bumper coverage.” There just isn’t a warranty out there that covers everything. Make sure the salesperson presenting the warranty gives you a thorough explanation of the number of components that are covered and what deductable you can expect to pay. My experience with warranty companies has been this: the ones that are backed by the manufacturer, such as Fords ESP (extended service plan), are warranties that provide the best coverage with less hassle. These warranties are accepted at any of the manufacturer’s dealerships and the personnel at the dealerships are trained in how to administer them. The key problem with aftermarket warranties is they are not always accepted everywhere. This means you may have to pay out of pocket for repairs and apply for a refund. I know of people that have been solicited by mail or telephone and have bought a warranty only to find out when they needed it no such company existed. These solicitations are often disguised as coming from the manufacturer, my advise is check it out before you buy it. Ask who backs the warranty and how does the repair shop get paid etc. Warranties also vary greatly in price. The longer the coverage, the more parts covered, the higher the price. In most cases you can negotiate the price of the warranty. Finally, if you are buying an extended warranty for a new car, you do not need to buy it at time of delivery. You can buy the extended warranty anytime that the vehicle is still with in the manufacturer’s warranty. So don’t let the salesperson pressure you with the “this is the only chance you will have to buy this.” line. So yes, buy an extended warranty, but make sure it is the right one.
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