Automotive Extended Warranties

Also known as an extended service agreement, an extended warranty is a contract through which a manufacturer or a third party warranty providers carry out the necessary repairs on mechanical break downs for a given duration of time as stated in the contract. The vehicles come with an original warranty that usually covers the car for a period of three years or 36,000 miles, whichever comes first. The users can then purchase an extended car warranty to cover the repairs when the original warranty expires.


The coverage of the extended warranty varies from one provider to another and therefore the car owners need to check out the details to ensure that they know what they are paying for. It is recommended that the car owners read the fine print of the warranties, as it will provide them with the insight on the type of repairs covered. This will enable them select those warranties that are suitable to their needs and they will be in a better position to reduce the out of pocket costs they will have to foot.

The car owners are required to consider a number of things before they settle for an extended warranty. One of them is if they are planning to keep the car especially after the end of the original warranty. If they are hoping to keep it for along time, then they should buy a warranty before the original one expires to avoid being uninsured.

They will also need to consider their financial responsibility. This will deal with the deductibles they are required to pay when they have purchased the extended warranty. They have the option of selecting the per repair deductible which will require them to pay the deductible each time the vehicle is repaired. They can also select the per visit deductible which will require them to pay the deductible each time they visit a repair shop. It is the best choice because some time the vehicle may require more than one repair work.

The warranties come with different payment options. Some of them will pay the repair shops once the repair is done while others will require the car owners to pay the repair costs and then they will be reimbursed later. To be reimbursed, they will need to send the receipt to the administrator of the warranty who will give the authorization. The other consideration they need to check is whether the warranty can be transferred to a new owner, especially if they are thinking of selling it.

Avoid Affiliates and Lead Generation Companies When Buying Your Car Warranty

So you've made it through the stress of buying a new vehicle, you haggled with the salesman, negotiated a price for the new car, they even let you feel like you beat them up for a good trade in price and your about to get your keys and ride home in your nice new car but wait! You have to stop and see the finance manager. This seems pretty harmless he’ll make you feel like a rock star as he asks you for your autograph 53 different times, the champagne is chilling…. But wait there’s options and one of them is would you like to purchase an extended auto warranty?


Now this sounds great with an extended car warranty you’ll get extra coverage, an extra piece (peace) of mind if something happens to the car that they just spent a good amount of the day telling you was the greatest machine ever built and if you pay even more for it they’ll guarantee this great expensive machine just a little more. now after the stress endured from shopping and haggling the extra warranty is enough to make my wife jump at a few extra dollars for them to guarantee an expensive machine that was the highest of technology when they were telling you the price, but then they back peddle and contradict themselves and tell you it's a good idea if you pay extra for them to cover THEIR product! How does this work? What’s next? Will the supermarket charge me more to guarantee that the steak I just bought will stay fresher longer and be more tender even though I paid top dollar for it?

Now as always I'll probably be misinterpreted as an angry negative kind of guy and despite what my wife says I’m not. I’m skeptical for myself and all the rest of the hard working people like myself, so they say they gave me a good deal on the car close to the msrp and they aren't making any money on the deal (when that line comes out I start rolling up my pant legs because it's getting deep) and I’m not totally against auto warranties but lets call it what it really is you pay more for them to guarantee their product.

In closing some people swear by the car warranties offered by dealers and yes if you get a lemon it's covered and you will be safe from costly repairs. All I’m saying is that for what cars are costing these days I think that the dealers and manufacturers should at least be honest and say “yes there’s a chance we screwed up somewhere and we’ll get you insurance against us if it breaks down.

Truth and honesty in sales and America.. All right now I’m dreaming.