Reader’s Question:
Why should I get a car extended warranty plan when my car manufacturer already provides a factory warranty on my vehicle?
Jonas
Houston, TX
Good question. This is best answered by knowing how long you plan to keep your vehicle. If it’s at least for the next five years (or at least beyond your car’s factory warranty period) then you should seriously consider obtaining an extended car warranty. Listed below are some advantages of owning a car extended warranty service:
1. Minimize Maintenance Costs - Maintenance costs exert a heavy toll on your pocket. If your car breaks down after the manufacturers factory warranty period, expect to pay thousands on repairs if you don’t have extended warranty. A good extended warranty plan can save you from all that trouble and save you a lot of money in the long run.
2. Get Covered for Costs if Your Car Breaks Down - One of the best reasons to get an extended warranty plan is to cover for mechanical breakdown and wear & tear. The plan can also cover for most parts of your car including high-end devices such as DVD players, Bluetooth devices and state-of-the-art stereo systems.
3. Provides a Wide Variety of Additional Coverage - If your car breaks down, an extended warranty can reimburse your car rental expense, travel costs, and towing services.
4. Transferrable Ownership - the extended warranty plan can also be transferred should you decide to sell your car. This can help you sell the car much easier and faster to potential buyers.
The coverage provided by an extended car warranty is usually more comprehensive compared to regular car insurance. This gives you the peace of mind knowing that you won’t have to spend thousands of dollars in the event your car needs repairs.
June 12th, 2009
Reader’s Question:
I have just purchased my new car here in Maryland. My dad says that it is better if I get extended warranty, but I disagree because I already have the original manufacturer’s warranty. What exactly is the difference between the two?
Mary
Baltimore, MD
As with a lot of other products, vehicles initially come with a warranty that is given by the manufacturer to protect the consumer within a period of time or a limited amount of miles. Others call this the basic factory warranty.
The majority of vehicle manufacturers here in this country provide warranties that take effect to as long as thirty-six months, if this comes first, or 36,000 miles, if this comes first. In addition, most manufacturers here in the country offer a warranty on all legally required emission’s components for a matter of five years or 50,000 miles and a warranty for corrosion that would not expire until the sixth year or the 100,000th mile.
What the original manufacturer’s warranty does is it serves as a sort of assurance that the newly purchased vehicle is not defective.
Now, what are you going to do beyond the allotted amount of time or amount of distance?
Beyond the basic factory warranty’s allotted amount of time or amount of distance, you are going to be the sole person responsible for any repairs or malfunction that your vehicle would have.
This is where extended warranty comes in.
Extended warranty protects you from any repairs that you would have to undergo during the time that the original manufacturer’s warranty has already expired. This is the difference between the original manufacturer’s warranty and extended warranty.
Different companies offer different types of extended warranty coverages. It is up to you to just check out the ones there in Maryland that would best satisfy your needs.
And your dad has some point. Even though you are still covered by your basic factory warranty, it is better to avail of extended warranty right now because, like life insurance, extended warranty becomes more expensive as the vehicle becomes older and gathers more mileage.
Tags: auto warranty
December 12th, 2008
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