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Vehicle Cost in Relationship to Extended Warranties

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 warranties have been describe as “health insurance” for vehicles, along with a whole lot of other fancy sales talk, but essentially they are an extended service plan. In some ways they are similar to normal insurance that has to be taken out on a vehicle, but this is really simplifying matters. What happens when you purchase and extended warranty plan, is you pay money in advance to avoid paying out even more money should something go seriously wrong with any of the components of the vehicle. These components are those that are covered by the extended warranty plan.

As with any other product, whether it be a pair of jeans or an health insurance plan, you get what you pay for. In other words, paying less for a cheap extended warranty product does not mean that you will receive the best quality plan, and you more than likely will not receive the coverage required.

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