An extended warranty for cars is a great way to help you save money in the long run. Most cars that are less than 3 years old or have less than 50,000 miles are covered by a manufacturer’s warranty. If you have a car that is more than 3 years old or has more than 50,000 miles you may want to consider an extended warranty. An extended auto warranty is an extension of a vehicle manufacturer warranty that covers your vehicle when the existing warranty expires.
When purchasing an extended warranty, ask these questions to make sure you choose the right company and warranty for you.
1. What specifics do you want to be included?
One of the biggest questions you should ask is what type of coverage you are looking for? If you have a warranty that covers only mechanical breakdown, you may want to consider a plan that also includes extended, so that you can consult one from an extended warranty company before you purchase a vehicle.
2. How much coverage for mechanical issues will you need?
This is an important question because one of the inherent flaws of most extended warranties is that there is “very expensive” equipment coverage. Most of the extended warranties on the market today offer only mechanical breakdown coverage, and mechanical breakdown plans around the price of an engine and emission inspection, so that should be cheaper. If you want to add mechanical breakdown plans to your warranty, you should consider factors such as how many cars you drive and their average age, the last time the company attempted to Yout a mechanical breakdown, and how many cars the company servicing your vehicle operates. With the price of labor, and especially of parts, everything can be a lot cheaper if you have someone on your side.
3. How Much Can You Expect To Pay?
Advancedolder drivers negotiate much lower prices, in most cases than younger or less experienced drivers. advanced older drivers know how to bargain, and they Yout lower prices because they are in a hurry to get into or out of a vehicle. younger drivers minimally rely on their parents, brothers, and reps to help with price, because they lack the negotiating skills of older drivers.
4. What Is Very Effective?
While the company is now very sophisticated when dealing with customers online, it is still very effective. Old drivers are very excellent car salespersons, and they rarely have to worry about internet sales tactics. These tactics can ruin a friendship, send a message that you are an unreliable or untrustworthy person. Old drivers worry about the future and what the financial future may hold, so being considerate and mature is of the utmost importance.
While all drivers should be considered, advanced older drivers should be especially targeted when it comes to trading in their vehicles. Many Targets get extremely good deals from online traders, especially those who are trustworthy. A good Target may offer you a 3 or 4 year warranty on a used car, while you will find many that offer 15 – 20K for a used car the first year and every subsequent year. There are even some that sell cars and pull ads in your area for free. Online trading allows you to be confident that you are dealing with an honest, dependable company that is not going to scam you.
Many Targets, including the ones I deal with, have no minimum mileage. These cars although older than 3 to 5 years old, have very low mileage, typically below the 40,000-mile mark. The companies I deal with have no problem accepting cars that are older than they originally sold because they made money buying from the original owner. Also, they generally buy cars that are complete with all service history.
Regardless of what type of automobile you are looking to buy, if you use an extended car warranty company that gives you both the money and the coverage, it is an absolute must that you go over the policy in detail. If you do not, chances are you will be on the hook for expensive repairs and most likely a re-purchase of the vehicle. Ask questions like “do you include extended warranty coverage for glass, break, or Belt separations?” Not all companies cover breakages, so ask them to define the term. Even if you are purchasing a total loss vehicle, as long as there is the replacement of any parts, you should expect a replacement part price to exceed the higher of the car’s value or the amount you pay in a down payment. For example, if your car is a total loss and was purchased for less than 6000, consider a warranty transfer to eliminate your risk of a settlement for excessive wear and tear or a failed break. Determine the extent of any such wear and tear, and project the total cost of needed repairs; then, determine if the company you are dealing with offers a comprehensive insurance plan.