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Tips for Getting an Extended Warranty

Before getting an extended warranty think through your automotive needs. If you’re spending a significant amount on a new car paying a bit extra for an extended warranty makes sense. You’re likely to run into small or big problems a few years down the road.

Why not spend more now to cover future headaches? Most warranty plans are solid, dependable packages with extensive coverage.  Do strict research to find a good plan that fits your requirements.

Do You Need it?

Just because more folks are buying extended warranties doesn’t mean you should too. Depending on how much you’ll drive your car and the type of miles the car will see you may be better skipping the extended warranty. Any car undergoing serious wear and tear may be a strong candidate for a warranty. Think of the long term investment. If you’re driving 12,000 miles or more on a yearly basis consider an extended warranty as an investment in your future.

Never give into a particularly pressurized sales pitch from a shifty dealership employee. Some dealerships receive hefty commissions on warranty plans sold. If a sales person treats you like prey instead of a valued customer ignore their desperate pleas and move on to another dealership.

Select a Warranty Provider

Independent warranty providers, manufacturers and dealers are your 3 choices. Independent companies offer low costs but may be here today and gone tomorrow due to their unstable nature. Also, repair shop coverage may be different than initially agreed upon. Dealers are also lower cost warranty providers but they offer you only 1 service point. If a dealer can’t fix your car where else can you take it? Unless your dealer is close to home you may be making a long trip for basic services like oil changes.

Manufacturers charge high upfront costs but have a factory-backed repair network nationwide. You don’t need to haggle about price or repair and can find a shop in a convenient location. Paying a higher amount ahead of your repairs may be worth the convenience you’ll experience with a manufacturer provided warranty.

Go Over the Plan

You need to know what to look out for when reviewing car warranties. It’s easy to fall prey to warranty overwhelm with all the options you can take. Take a deep breath, relax and dive into your due diligence campaign. Good plans are Better Business Bureau certified, offer a free loaner car, transferable warranties and the ability to choose dealerships or car repair shops. Poor warranty plans have a bad track record of customer satisfaction, are non-transferable, place specific limits on repair costs and make you pay out of pocket to cover certain repairs.

Do your homework. Thinking through your prospective plan now can create smooth automotive sailing in the long run.  Some seemingly effective warranty plans fall apart if you dig a bit deeper. Make sure your money is well spent. See a warranty plan as an investment for your future when your auto needs some light or extensive work done.

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