Extended Warranties: Should You Get One?

Should you purchase an extended car warranty for your vehicle? This question is a common concern among many consumers. Although manufacturers do have longer warranties nowadays, they often do not cover many parts, leaving you, the consumer, to pay the remainder of the costs. With the price of car repairs constantly rising, it is important that you do get extended auto warranty coverage.

An extended warranty can also add to the resale value of your vehicle, provided of course that you do ensure that the auto warranty is transferable to another owner. What is a fair price to pay for an extended warranty, though? In order to get the best price possible, it is vital that you do get various quotes before deciding on a particular type of extended warranty coverage. Among the places online to get these quotes are independent warranty companies such as WarrantyDirect.com and online car websites like Edmunds.com. You should seriously consider true "bumper to bumper" coverage that includes "wear and tear" coverage as well, as without it, you once again will be left to pay for the rest of the often costly auto repair bill.

Also, it is important to ensure that you deal with reputable extended warranty dealers such as the ones mentioned. If you are considering buying an extended warranty from another company, always ensure that you contact the Better Business Bureau to validate the reputation of the company.

What Types of Extended Warranties Do Most Car Dealers Provide?

Now that you do have this quote, you will be better prepared when you are finalizing your car deal with the dealer. The car dealer will often have an extremely high mark-up price (some estimates state $1,000 or more) on the extended warranty price and often this mark-up is more than the profit that is actually made on the sale of the vehicle itself. Thus, the car dealer will definitely attempt to sell you on the dealer's extended warranty coverage.

Please be aware that the car dealers often use third parties to administer the extended warranties and often these warranties are policies that will provide minimal car repair coverage down the road. This bare-bones policy will not deter dealer's from charging you the same amount (or even more) than the best policy offered by an established independent warranty dealer such as WarrantyDirect.com. Consequently, it is always better to just purchase your extended warranties at an independent warranty dealer.

If for some reason you wish to purchase your extended warranty at the car dealership, you can use the quotes that you received as a bargaining tool to lower the price of the car warranty at the car dealership. Always ask the car dealer if you can look at the written warranty contract and see what will actually be covered with this policy. As mentioned before, car dealers often use third party extended warranty providers to maximize their profits.

Make sure that you are familiar with the company as many "fly by night" extended warranty providers do go out of business prematurely and leave you with no coverage at all. Many extended warranty providers have strict policies as well, so ensure that the policies are as good as the ones sold at WarrantyDirect.com. If, of course, the car dealer will not offer you true "bumper to bumper" coverage with competitive policies and prices from a reputable provider, simply purchase the quality plans offered by the independent extended warranty providers at WarrantyDirect.com.

Although extended warranties on cars are important to consumers, it is more important that you find the right coverage at the right price.