When shopping around for auto extended service warranties, it is important that you check for the scariest intangible of them all. Hidden costs will infuriate you and make you feel as if youve been violated. I cant help but feel personally responsible when I fall victim to a hidden charge. I feel like I let myself down and immediately get depressed and start eating a gallon of chocolate ice cream.
Even though auto extended service warranties are not the same as insurance, you may still have to pay a deductible. After youve sorted out that dilemma, you have to decide if your deductible covers the trip to the service station or just the part youre having repaired. If the fuel-injection pump is clogged with engine scraps and the four-wheel drive is malfunctioning, youll have to pay two deductibles. If the mechanic finds two more small problems, you might be paying four times the amount that you should be.
Unraveling the Mystery of Auto Extended Service Warranties
I know its cynical, I know its conspiratorial, but old practices dont soon die. I cant keep from remembering the stories of warranty companies denying every claim they received without looking twice at the ink on the paper. It was just common policy that they would initially deny the claim. Some insurance companies have been accused of the same thing.
If your claim is denied, be sure that you understand the reason why. Ask all kinds of questions. After all, if youve read all that youve been assigned to read on auto extended service warranties, theres no reason a reasonable claim should be declined. As long as you upheld your end of the bargain and the part is still covered under warranty, theres no reason the company should not cover your costs. Persistence always pays off.
There are a handful of factors to consider that might help you make your decision of whether or not to buy extended service agreements. One, which you might not consider immediately, is what year your model is and the history of that model. If your car is the first generation of its kind, it will be more prone to problems. Unproven car models historically have more problems than those that have been around for a while.
I personally think that any problems a new car model might have should be covered under recalls and the manufacturers warranty. Ive been wrong once before, so dont take my word for it. Those who demand to have the latest model of car dont usually have a problem with purchasing an extended warranty. These extended service agreements help assure them that theyve made the right decision in purchasing the newest of cars on the market.
Extended Service Agreements Can Wait
Some experts recommend that you wait until after your existing warranty is up before purchasing any new extended service agreements. At the end of your cars original warranty, you have a better idea of how well you are going to like your car and how long you plan on keeping it. Signing an extended warranty right off the bat is like marrying your car. But if its love at first sight, you might get a more comprehensive plan by signing right away.
Whichever option you decide upon, you should know that cars dont typically explode the day that your first warranty expires. Sometimes its a good idea to wait 60 days to see if the honeymoon is over. If youre still head-over-heels in love, you should try and get a good deal on an extended service agreement.
Auto extended warranty plans are negotiable. Come on now, you didnt think that after all that head-shaking and heavy sighing you did while purchasing your car youd be done, did you? Whatever your bargaining practices are, sharpen them up before heading into the warranty salesmans office. If you did as much research on warranties as you did before purchasing your car, youre probably still under prepared. If you did more research, you might be close enough to play with the big boys.
Bargaining auto extended warranty plans is like skiing moguls in a blizzard. Sheets of white are flying at your face, and you cant even begin to see whats around you or coming at you next. The only chance you have is to know the mountain like the back of your hand. Before you go into the sales office ready to sign that warranty, there are a few things to keep in mind.
What to Ask for in Auto Extended Warranty Plans
With markups as high as 100 to 200 percent, you should be prepared to ask for a cheaper plan. No, not a cheaper plan, but the same plan at a lower price. Make sure you know you are getting the same exact plan that your car needs. Once you have all your questions answered and you know your plan includes everything you could have hoped for, youre ready to bargain for the price.
After you ask for your ideal price on this one of a precious few ideal auto extended warranty plans, be prepared to leave. Ask the price, brace yourself knowing that if you get awarded this plan at this price, you will be immediately upgraded to the status of immortal. But if you are not so lucky, you can always come back and talk to the salesman the next day. If I were you, I would wait until you shop around to see if anyone else is selling auto extended warranty plans at the price you want. Then take the best of three offers.
When people I know want to go out and buy extended warranties, I try and remind them of the little things of which they may not be aware. After Ive gone through my extensive list of what to look for, what to avoid, what to pay for, and what to pray for, I try and cover all the details where the devil likes to play. The first two of these small caveats I group together in what I call renewals and transferability.
If you buy a three year-old car whose original warranty has run out and you also buy extended warranties for that car for three more years, what happens then? You have a six year-old car that still runs smoothly. Whether you want to sell it or keep it around for a while, you need to make sure that your extended warranty can do what you need. If the warranty has run out, you want to be able to renew it at a similar rate. If youve taken good care of your car so far, you should not have a problem.
Everyone Wants to Buy Extended Warranties
If you find yourself in a situation where you have decided to upgrade to the latest model following your brief stint with a used car, youll probably want to trade it in or sell it. If you decide to go the private sales route and your warranty is still active, you will want to have an extended warranty that can be transferred. This transferability ranks as a major sales point when you are trying to unload your used car. People–even if theyre family–trust a warranty more than they trust you.
I know that these are the annoying minutiae you feel that you dont need to waste time thinking about. I encourage you, however, to pour over every deal of a contract and make sure that your brain has tied up all the loose ends. Peace of mind doesnt come when you buy extended warranties; it comes when you buy the right one.
Everyone wants car service contracts. Nobody wants to go shopping for them. It can be zero fun when you are sitting down with a salesperson, bored to tears, trying to decipher everything that is flying at you. Wouldnt you rather have information flying at you sitting at a desk than cars as you stand next to your broken down car on the side of the road? Think about that moment and then decide whether or not you should go shopping for service contracts.
Car service contracts dont do you any good when they are purchased after your car has broken down. They arent even on sale anymore. I cant think of any great inspirational quotes or pep talks to get you out there to get one, but I can definitely try to use some logic. Follow me as this simple, easy to understand information flies quietly at your head.
Nobody Regrets Buying Car Service Contracts
I said the word nobody. I meant it. I have never, in my short-but-action-packed life, had anyone tell me that they regretted having purchased a service contract. Someone hands you a piece of paper that promises to fix the items that are listed if you uphold your end of the bargain; you have to take good care of the car you already love. Im trying to put this as simply as possible but to truly understand, you sometimes have to consider the alternative.
When somebody has a problem with their car, the first thing everyone looks for are any car service contracts. The mechanic wants to know if its under warranty. Your friends want to know if its under warranty. Even you, who secretly know it isnt, want to know if its under warranty. Everybody regrets not buying car service contracts when its too late. You can make your life a whole lot easier with one slip of paper.