An extended warranty serves as an extension to your manufacturer’s warranty and provides additional coverage to a vehicle. This coverage serves as protection against unforeseen damages and expenses to a car. There is much debate over if an extended auto warranty is needed or not. Regardless of your view on the pros and cons, here are some helpful tips and secrets about extended warranties that you need to know.
Extended Warranty Secrets
1. Don’t Rush Into It
If you need time to think about getting an extended warranty for a car, you have time to decide. An extended warranty does not have to be bought the same day a car is bought.
2. Be Timely and Follow a Schedule
Extended warranties companies will provide a schedule to get recommended services done on a vehicle. If the vehicle owner does not or cannot prove that their vehicle has been serviced, the warranty provider may refuse to cover a repair.
3. Remember That Not Everything Is Covered
Vehicle warranties do not protect and cover routine maintenance and fixes such as tune-ups and oil changes. This also includes items such as brake pads and other parts that wear out over time.
4. Extended Warranties Don’t Last Forever
An extended warranty may be canceled at any time. If applicable you will receive a prorated refund for the unused amount on your policy.
5. Warranty Prices Are Flexible
Similar to the cars they sell, dealerships will mark up and raise the prices of extended warranties. However, you are more than able to negotiate with the provider/dealer to get a lower price.
6. Extended Car Warranties Can Be Transferred
If a vehicle has an extended warranty on it and it is sold to a new owner, then yes that warranty can be sold with it. Although this is possible, it is not possible with every extended warranty contract. The best way to find out is to read the extended warranty contract to be certain.
7. Not All Sellers Are Safe
When assessing the best extended warranty plans and options, buyers need to additionally review the warranty sellers as well. There are many extended auto warranty providers who are dishonest and lack a good reputation. Along with them there are also many extended warranty scammers. Those who are shopping for extended warranties will need to use caution and protect themselves from deceitful providers.
8. Warranties Are in Many Locations
Extended auto warranties are not only found through dealerships and online providers. Other places that provide extended auto warranties include credit unions/banks, and insurance companies.
9. Warranties May Have Loopholes
From your perspective you want a safety net for your vehicle. From the warranty providers perspective, they want to get money from you and not have to pay for the costs of your vehicle. For this reason, many auto warranty contracts have loopholes and technicalities that allow the provider to avoid responsibility and be able to legally not honor certain requests and repairs.
10. Warranty Prices Fluctuate with the Car Brand
There is no industry standard for extended auto warranty costs, and each warranty will fluctuate depending on the car brand. A warranty on a Buick, will differ from that on a BMW for example. Typically, more reliable car brands will have lower warranty rates compared to less reliable cars. Some factors that are considered are vehicle make, model, mileage, and history.