mileage and in most cases you won’t even use the Warranty because the vehicle is brand new. You can usually obtain a Wrap Warranty which will extend the bumper to bumper coverage for a reasonable price where you will most likely need it. Basic Maintenance Repairs: If you decide to purchase a Pre-owned vehicle and you decide not to get the Extended Warranty offered by the dealership, keep all of your mechanical receipts in the next three years and in most cases they will add up to more than what the Warranty would of cost you, but you had to pull the money out of your pocket each and every time when there was a mechanical repair. Plus instead of having the luxury of taking it to the best and most qualified repair facilities, you had to search for the least expensive place to take it. Not to mention Towing, Rental Car, etc. Major Repairs: Even though it is rare, I have seen Engines and Transmissions go out on Brand New Vehicles. So what can you expect from a Pre-owned vehicle? Especially if it has higher mileage. You’re driving down the road on a vehicle that is in good condition, all of a sudden a hose clamp brakes and it leaks out all of the coolant. You don’t realize it and don’t pull over immediately. Baam you’re engine blows and now you have to pay thousands of dollars out of your pocket because you felt that purchasing an Extended Warranty was a rip-off. Many Car Buying Websites tell you to only purchase Extended Warranty Coverages from online companies so that you can save money. Now, while this is true and I always suggest for people to search for different Warranty companies before visiting the dealership, especially so they know what a fair price is. I’ve also seen many people turn down the Extended Warranties at the dealership and forget to purchase one online or realize that they now have to pay for it upfront when the dealership could of either added to their financing or helped them finance it straight through the Warranty Company. What a good Extended Warranty should have Breakdown and Wear & Tear: A good warranty should cover breakdown and wear and tear, not just breakdown. Takes Effect Immediately: Make sure that the warranty takes effect immediately unless you are buying a wrap warranty which starts right after your manufacturer warranty goes out. Claims are paid to the repair shop not reimbured to you: You are supposed to be protected from out of pocket expenses. Some warranty companies want you to pay the shop and they will re-imburse you weeks later. Insured and Bonded: Make sure that the Warranty Company is Insured and Bonded in case it was to go out of business, you’ll claims will get paid. No Deductible: Make sure that the warranty does no thave a deductible, you will be paying $100 to $200 dollars every time if you don’t make sure that it has a $0 deductible. T Transferable extended auto warranty when you sell the car: Some auto warranties end when you sell your car. Choose an auto warranty that allows you to transfer it to the next owner. This very much helped us sell a car on eBay. Car Warranty Coverage For ABS Brakes and Overheating: Make sure that it covers ABS Brakes and Overheating. Repairs Can Be Done At Any ASE Certified Repair Shop: Don’t be fooled into thinking that with all warranty companies, you can take the vehicle anywhere you want, some warranty companies force you to go to specific shops.

Choose the best Warranty Services!

There are different types of extended warranties. When buying a 6,000 vehicle, it does not make since to purchase a top of the line warranty that cost 3,000 dollars. There are warranties that can cover what you need for about 500 to 1,500 dollars.

Now that you know what to look for in a Warranty, you can go to the next step and find out about Financing Scams.

Chapter 3 Steps

Do some research before buying an Extended Warranty! Some warranties will cover all the non-wear items on the car up to only three years or 36,000 miles. Others will cover repairs all the way up to 10 years or 100,000

Always purchase an extended Warranty. Especially when purchasing a Pre-owned Vehicle. Many websites will tell you that it is not wise to purchase a warranty and that it is only a rip-off and profit to the dealership. That is false. You can save hundreds to thousands of dollars by purchasing a good Warranty. Most Manufacturer Warranties on new cars are only good for a certain period of time and/or

1. Warranties Learn what to look for in a good Warranty

2. Finance Scams Learn about the Finance Scams that occur every day.

3. Auto Insurance How to buy Auto Insurance and lower your bill.

4. Insurance Store Get the lowest quotes on Warranties, Gap Etc.

Home  »  Auto Insurance Center  »   How to Choose a Warranty

CHAPTER 3