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Survey By The Consumer Reports National Research Center Recommends Extended Warranties By Manufacturers

The Consumer Reports National Research Center did a nationwide random telephone survey in October 2007 covering 2,000 households so they could get a fix on how new car dealers felt about their dealerships. The criterion was that they should have bought a new or a used car in the past one year from a new car dealership.

A research done among both men and women who were buying cars showed that more often than not, the dealers made a very strong pitch for an extended warranty on the vehicle – men were more at the receiving end than women. It was found that of the ones targeted for the pitch, 15% went ahead and bought the extended warranty at the price that was quoted while 29% bargained and bought it at a negotiated price.

Consumer Reports recommends that the extended warranties from the auto manufacturers were a better bet than the ones that third-party companies offered. They also felt that maybe an extended warranty isn’t necessary unless you aim on driving your vehicle well beyond the original warranty period.

Their research shows that of the 44% of those in the survey who bought extended warranties, it could just be that many of them were really wasting their money when they could as well spend it better on a better predicted reliability rating vehicle or saved it instead.

The research also says that most car buyers seem to be satisfied with what they get at their dealers. However, a better understanding of how to negotiate can always get a car buyer a better deal. Once consumers have a better grasp of the car buying process and how negotiating strategies help, it would definitely make them even more satisfied.

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