Essentially it is entirely at the discretion of the purchaser, where and from whom he or she decides to purchase their extended warranty product. There are any number of outlets selling these plans, and there will always be an extended warranty product available that will suit the purchasers pocketbook.
Of the three organizations that provide extended warranty products: the new or used car dealership, the manufacturer and the third party or independent company. There are pros and cons to each. We take a look at these pros and cons in brief, so that you have an idea where you would like to make you extended warranty purchase.
When you are in the market to purchase an extended warranty product, you have to bear a few things in mind and some simple yet effective tips might just help you find the right product for your vehicle. Most people who have recently purchased, or are thinking about purchasing a new or used low mileage vehicle, should also be thinking about making the purchase of an extended warranty product.
Today an average vehicle in the US costs around $26 000, this is just and average family, car, not a luxury vehicle. When this kind of money has been spent, the owner of the vehicle expects it to be trouble free for the length of its life. However, even with manufacturers’ guarantees in place, why are so many new vehicle owners purchasing extended warranties? The answer to this question is pretty simple really, the new vehicle owner purchases an extended warranty product to protect this large investment.
extended warranty companies have found that it pays to advertise. But advertisements do not go into great detail; they only tell you what they think you want to hear. Car dealers wanting to sell you an extended auto warranty and telling you that you are obliged to purchase this through them is a scam. You are not obliged! You are able to source your own extended warranty product, but you have to be able to ask the right questions.
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An extended warranty is a product that insures your vehicle for repairs once the manufacturers guarantee has expired. It is a vehicle service contract that is taken out between your-self and the extended warranty company. These are not insurance policies, they take the money that you contribute to the extended warranty product and deposit this in a “claims reserve account”. This account is insured and hopefully re-insured, so that if the extended warranty company is unable to pay you claims, the insurer and re-insurer will be able to meet these claims. Car dealers sell extended warranties and this is one of their most profitable activities. If you do not understand contract, you will find that the language used in an extended warranty product is tricky. However you are not obliged by any means, to purchase an extended warranty from your car dealership. It is very important to remember this as this is the only way to obtain a reliable extended warranty product. Extended warranties quite simply extend the life of the original manufacturers warranty beyond the expiry period. If you have purchased an expensive vehicle (and let’s face it, today all vehicles are an expensive purchase), repairs can be costly. When gadgets and electronics fail, say nothing of engine and transmissions, you don’t want to have to fork out the cost of these repairs and so should ensure the most coverage possible on an extended warranty product.
Before you ever go to a car dealer to purchase a vehicle, do your homework and ensure that you receive a few comparative quotations for extended warranty products for the type of vehicle you want to purchase. This is because of the forewarned is forearmed principle. Car dealerships and car salesmen in general, have very little knowledge of extended warranty products. The generally just punt the flavor of the moment and have no idea if it is a good product. All they know is that they earn a commission for selling it and this is not to your best benefit. more…
Contrary to popular belief, it is possible to obtain extended warranties that cover older, more high mileage vehicles. There are a number of products available and this is very good news for anyone wanting to purchase and older vehicle that has reasonable high mileage on the odometer. more…
A fully insures extended warranty product, is generally more expensive to purchase, but you are able to rest assured that any claims you might have on your vehicle will be met. extended warranty companies that offer cheapie rates are often not covered or insured themselves. Let me explain, in order for a claims reserve account to be able to cover all their customers repairs, they have to have their fund insured. If not, this claims reserve account quickly empties out, and they are unable to meet their obligations to their clients. more…
If you are unsure about extended warranties for your new or used vehicle, you need to know that in the most part these are a good insurance policy for your vehicle. First time car buyers may not know this and be unsure about purchasing and extended warranty product. After all we all perceive insurance as being a “grudge purchase”. more…
