Buying an extended used car warranty
As has been pointed out in other articles the purchase of an extended car warranty is a "buyer beware" market. One in which you need to be an informed consumer.
Unfortunately, there are some extended car warranty firms that will rip you off. That said, the question answered in this article is this: how can I avoid being ripped off by unscrupulous extended car warranty firms?
As with most types of insurances there is a large number of companies offering to the public extended car warranties. Some good, some not so good, and some simply fraudulent. This said "how can I avoid the scams that some extended car warranties offer?"
Here's a set of general questions to get you started:
1. First and foremost determine whether you will need an extended car warranty. Many used cars are covered by the initial warranty and, depending on how long you plan to keep the car you may not need extended car warranty coverage at all.
2. Avoid high pressure techniques used by some car dealers to get you to purchase an extended car warranty.
3. Only buy an extended car warranty once you're sure you need one.
4. Take your car in for regular service. No matter how good your coverage is, warranties won't cover damage if you fail to maintain your car properly.
These things said, please take your time before committing to any extended car warranty plan. Do your homework, ask your questions, and compare your answers.
The starting point is a set of questions and answers you need to ask:
Is an inspection of your vehicle required before coverage is issued?
When does the coverage begin?
Will my vehicle qualify for coverage?
What are the mileage/year requirements for coverage?
Does the coverage offer both mechanical and wear and tear warranties?
How is the extended car warranty financed, i.e., insurance or bond?
Who receives the payments the mechanic or the policy holder?
Can I choose where to have my vehicle repaired?
Are Seals and Gaskets covered?
What are the deductibles, if any?
Can I transfer my warranty if I sell my car?
Perhaps the most important and revealing question you can ask is one asked of your mechanic. Will they accept the extended car warranty and if not, why?
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