Reader Question
I bought a new Honda Odyessy for my wife and they tried to sell me (PUSH ME) to buy an extended auto warranty contract for it with a price of $1100. Does this sound like a good deal or a rip off?
Dan,
Little Rock AK
First off I would not buy an extended auto warranty contract on a Honda…or Toyota for that matter, their quality is too high to warrant the cost of the policy. Second, the price that was quoted does seem a bit high for a Honda vehicle…I would expect to see something in the $900 range.
June 23rd, 2008
Reader Question I am trading in my old Ford Mustang for a new one, but I owe some money still on it. I was told that I would get more money from the old car if I trade it in at the dealership and I could use that money to get a service contract on the new car incase something breaks down it would be covered under my extended warranty. Is this true?
Shannon,
New Orleans, LA
Dealers may have already greatly raised the price of the car that you are buying to offset the value of your trade-in. Also, any debt still owed on a trade-in will be added to your new loan. Dealers’ service departments routinely get notices about car defects from the manufacturers. These so-called “hidden warranties” often never find their way into the public knowledge.
April 24th, 2008
Reader Question Can the car dealer sell me a used vehicle from their lot without having an extended warranty contract on it? I bought this Mustang used from a Ford dealer, and they said it does not have any warranty…but they are the dealer, shouldn’t they warranty it?
Steph
Phoenix AZ
Dealers must post a Buyer’s Guide on all used vehicles. This window sticker will tell you if the vehicle is being sold “as is” or with a warranty, and the terms of that warranty. Dealers may describe the right to cancel as a “cooling-off” period, a money-back guarantee, or a “no questions asked” return policy.
Before you purchase from a dealer, ask about the dealer’s return policy, get it in writing and read it carefully. Dealers are required to post the Buyers Guide on all used vehicles, including used automobiles, light-duty vans, and light-duty trucks. A “used vehicle” is one that has been driven more than the distance necessary to deliver a new car to the dealership or to test drive it.
April 24th, 2008
Reader Question Does the phrase Bumper to Bumper coverage really mean with auto extended warranty contracts? I am thinking of buying a contract from the Ford dealership…and I am confused!
William,
Washington DC
Bumper-to-bumper auto warranty covers all the non-wear items of the car. Emission parts can be covered for 2-8 yrs and if, taken on mileage, 24000-80000 miles. Bumper to Bumper: Bumper to bumper, or premier plus auto warranty coverage is provided with the purchase of all new vehicles. If any part of your vehicle wears out or breaks down, it is covered under a bumper to bumper warranty.
Save yourself that mark-up by NOT BUYING an extended auto warranty from an auto dealer. That’s your money! Save over 20% on extended vehicle warranties by shopping with us instead of other warranty companies. To get your free auto warranty quote simply enter your vehicle details in our FREE auto warranty quote wizard above and you’ll be on your way to saving money on your next extended auto warranty purchase.
April 24th, 2008