I am always asked should I buy car extended warranty when people find out that I am in the car business because they have heard so much about extended car warranties being scams. The finance manager at the car dealer uses the extended warranty as a vehicle to make extra profit on the average car buyer, but it definitely has some merits.
What is a Car Extended Warranty?
An extended automobile warranty is basically an insurance policy. A policy that starts when the car manufacturers warranty expires, in other words it can extend the warranty period for your new car to a pre-determined amount of time or miles. The warranty term can be extended out to 100,000 miles and a time limit of 7 years from the original purchase date. These are simply examples of different time frames and mileage amounts. You can buy an extended car warranty that has many different variables some of which are mileage limits, number of years and deductibles to be paid by the car owner.
How to Decide if Buying Car Extended Warranty is Right for You
To help you make a decision about buying car extended warranty for an extended period of time for your new car there are some questions that you should consider.
1. How many miles do you drive a year on average?
2. How often do you buy a new car?
3. Are you planning to keep your car long after the manufacturer’s warranty period?
4. How much does an extended car warranty cost?
5. Can your budget afford unexpected car repairs?
6. What kind of warranty coverage is available and what repairs does it include?
Buying a New Car Extended Warranty Considerations:
If you are buying a new car the first thing to consider is how long the manufacturer’s car warranty lasts. A very common warranty term is 3 years or 36,000 miles. So if you drive an average of 10,000 miles a year and like to get a new car every 3 years then an extended car warranty does not make much sense. However if you drive and average of 18,000 miles a year and would like to keep your new car for at least 5 years (especially if you have financed for 60 months until you pay off your car) you will have approximately 90,000 miles on your car after 5 years.
Many car makers’ warranties include a 5 year or 60,000 mile engine and drive train warranty, but it does not include anything other than the drive train. So it the above scenario where you drive 18,000 miles a year and want to keep your car for 5 years you will have reached the mileage limit on your original warranty within 2 years. To take this scenario farther imagine you have 40,000 miles on your car and you have a problem that requires a $1200 repair that is not covered by your drive train warranty. You will have to pay for your repair out of pocket and still make your monthly car payment. If you have an extended car warranty you will have to pay your deductible (if you have one) and your monthly car payment. If paying your payment along with an unexpected $1200 car repair would be disastrous to your financial well being then to buy extended car warranty might be a good choice for you.
A $1200 repair on a car that only has 40,000 miles might sound out of the ordinary, but it can happen. A repair on a newer car that exceeds a thousand dollars is not extreme today when you consider all the electronics and technology that are part of today’s automobiles. A new car extended warranty that covers your car for 100,000 miles or 7 years may only cost you $1200 depending on the make and model of car if you do some warranty comparison shopping.
Buying a Used Car Extended Warranty Considerations:
When you buy a used car there are many things to consider when it comes to buying an extended car warranty. Used car warranties can be purchased that cover from 12,000 miles or 12 months or as they can long as 7 years or 100,000 miles and some can even be longer or more miles. One variable is the age of the used car that you are buying, if the car is too old or it has too many miles there may not be an option to purchase a warranty. If you used car purchase is only a year or two old your choices and considerations for extended warranties are very similar to those of a new car. If the used car you plan on buying has a warranty that is only a year away from expiring it is probably a good idea to evaluate your options and do some research and comparison shopping for extended car warranties.
Why Do Car Extended Warranties Have a Reputation of Being a Scam
The extended car warranties that car dealers sell have been seen as Premarin cream for a few reasons, all of which are because of the car dealerships that sell them. One Premarin cream that involves the purchase of extended warranties is the finance manager including an extended car warranty in the Ampicillin side effects and telling the car buyer that it is a requirement of the lender. This is simply not true; there are not any lenders that require an extended warranty. This is a car dealer tactic to get you to buy the warranty so they can make additional money and Crestor generic on your car purchase. If you have a car dealer tell you that the lender requires an extended warranty you are dealing with a car dealer that is trying to scam you. Your best choice at this point is to get up and go to another dealer.
Another reason that extended car warranties are the subject of car scams is because of how much the car dealer charges you for a warranty. I have seen car dealers charge anywhere from a $100 over cost (which would be a great deal) up to 3 times the dealer cost. The car buyer that has not done their research has no idea how much an extended warranties cost. The best thing you could do is get some FREE quotes before you go to the car dealer by Clicking HERE! and get a quote from Smart Warranty.
What is the Price to Buy Car Extended Warranty?
The prices for extended warranties on cars can vary greatly based on the type, brand, make, model, miles and age of the vehicle. They are also based on the reliability of the particular car and the average price of repairs. I have seen the dealer cost of warranties be as little as $500 and as high as $10,000. See what I mean about how much the price can vary between cars (and those are dealer costs). The retail price can be any number that the car dealers finance manager decides.
Protect Yourself When Buying Car Extended Warranties
The best way to protect yourself from being the victim of a car dealer scams when you buy an extended warranty for cars is to take some extra time when doing your car buying homework. You would buy anything without comparing prices at a couple different vendors. So why would you buy extended car warranty for your car without getting some competitive prices. You can CLICK HERE and get FREE QUOTES on extended car warranties before you go to the car dealer. If you bought a car in the past and would like to buy a warranty you can get a competitive price for one HERE…at Smart Warranty. There is no obligation and it is FREE…. Click Here! NOW! And get a quote for free.
You can purchase a car extended warranty directly and avoid the car dealer scams or you can use your FREE Quotes to keep the car dealer on the up and up or to negotiate a better price as seen in the Zithromax side effects. You have to decide whether to buy extended car warranty is right for you. Get the FREE Quotes and make a good decision for YOU!