Extended Warranties for Your Auto, Are They Worth It And How Do You Know Which Company To Trust?
In today's tough economy, there are ways to safeguard ourselves from unexpected expenses, especially when it comes to our main source of transportation...
our car.
When you think about it, our car is an extremely important part of our life and if you have a breakdown due to a mechanical failure, what options do you have in place that will not only pay for your repairs but will also furnish you with a rental car while yours is being repaired.
There are several questions that you need to ask before you purchase your next extended warranty.
Should I purchase my extended warranty from the dealership where I bought my car? The finance manager, also known as the F & I manager is usually the person in the auto dealership that will close your car loan and have you sign all of your legal documents.
He or she is the person that quotes you your monthly payment, interest rate, length of the loan, and everything that pertains to your new or used car that you just agreed to purchase.
He may also attempt to sell you credit life insurance, disability insurance and an extended warranty.
These three products are extremely high profit items for the dealership and high commissions for the F & I department and you should avoid purchasing them at that time.
They mark their warranties up by as much as 100% profit or more if they can close you on it.
There is no cap on the price unless you are financing your warranty into your car note and then a lot of lenders will make them stay from 40 to as much as 90% mark up in profit.
If you don't buy from the dealer that sold you the car, then where else can you go to find a good warranty company that you can trust? You obviously want a company that, if you should have a claim, they will pay the repair bill without a hassle? There are a lot of warranty companies on the market today and while there are a hand full that are good, there are a lot that are not so good.
How do you know what company to choose? Check them out! I cannot stress that enough because if you don't do your homework, nobody else will do it for you.
I like to begin my investigation with the Better Business Bureau because they give you all the facts about the company such as, years in business, how many employees, complaints and unsatisfied complaints in the last 36 months and so on.
As everybody knows, there are two side to every story so you have to look at the satisfied complaints versus the over all complaints filed.
Lastly, I would suggest you call a couple of the repair facilities in your area to make sure they have had a good history with them and they paid the warranty claim in a timely manner.
That is where you will get a true gauge of the overall reputation of the company.
In closing, I hope this article has given you a few ideas and important areas to look at when searching for an extended warranty for your present of future car, truck or SUV.
Please watch for my next article entitled "How to watch for the hidden loopholes in a service contract" coming soon.
our car.
When you think about it, our car is an extremely important part of our life and if you have a breakdown due to a mechanical failure, what options do you have in place that will not only pay for your repairs but will also furnish you with a rental car while yours is being repaired.
There are several questions that you need to ask before you purchase your next extended warranty.
Should I purchase my extended warranty from the dealership where I bought my car? The finance manager, also known as the F & I manager is usually the person in the auto dealership that will close your car loan and have you sign all of your legal documents.
He or she is the person that quotes you your monthly payment, interest rate, length of the loan, and everything that pertains to your new or used car that you just agreed to purchase.
He may also attempt to sell you credit life insurance, disability insurance and an extended warranty.
These three products are extremely high profit items for the dealership and high commissions for the F & I department and you should avoid purchasing them at that time.
They mark their warranties up by as much as 100% profit or more if they can close you on it.
There is no cap on the price unless you are financing your warranty into your car note and then a lot of lenders will make them stay from 40 to as much as 90% mark up in profit.
If you don't buy from the dealer that sold you the car, then where else can you go to find a good warranty company that you can trust? You obviously want a company that, if you should have a claim, they will pay the repair bill without a hassle? There are a lot of warranty companies on the market today and while there are a hand full that are good, there are a lot that are not so good.
How do you know what company to choose? Check them out! I cannot stress that enough because if you don't do your homework, nobody else will do it for you.
I like to begin my investigation with the Better Business Bureau because they give you all the facts about the company such as, years in business, how many employees, complaints and unsatisfied complaints in the last 36 months and so on.
As everybody knows, there are two side to every story so you have to look at the satisfied complaints versus the over all complaints filed.
Lastly, I would suggest you call a couple of the repair facilities in your area to make sure they have had a good history with them and they paid the warranty claim in a timely manner.
That is where you will get a true gauge of the overall reputation of the company.
In closing, I hope this article has given you a few ideas and important areas to look at when searching for an extended warranty for your present of future car, truck or SUV.
Please watch for my next article entitled "How to watch for the hidden loopholes in a service contract" coming soon.
