Recently I had a conversation with Tom Besler, a resident of Lansing, Illinois, about his decision not to purchase the auto extended warranty offered to him by the dealership where he bought his car. Tom said, “I didn’t buy it because I’m usually able to fix my cars myself.” I admire people who can repair things, and by declining the extended warranty Tom figured he was saving himself $1,500.
But he went on to explain that during his drive home from the dealership he noticed the passenger-side remote mirror did not work. He called the dealer and asked them to fix it, since it was clearly a preexisting condition. But he was told, “Sorry, your car was sold ‘as-is.’”
I asked Tom if he fixed the mirror himself. He said “No, that repair could be tricky. The door panel would have to come off first, and they never go back on tight as they did in the factory. Then I’d have to work around the power window and lock mechanisms and wiring because I wouldn’t want to disconnect anything along the way. Then maybe I could get to the power mirror, but I still would not know what the problem was.”
Not only did Tom not fix the mirror himself, he decided not to have the dealer fix it either, because the cost was too high and “it was not really necessary that it be in working condition.” If Tom had purchased the auto extended warranty, he would have paid only a small $50 or $100 deductible and his power mirror would have been repaired or replaced. I wondered what breakdown would occur next that he also wouldn’t be able to fix.
Shade-tree mechanics who are used to fixing their own cars often can’t fix today’s vehicles. Automobile electronics get more complicated all the time. Modern-day dashboards display error codes for electrical and mechanical malfunctions that require repair facilities to own a special computer to evaluate problems and recommend a repair. Eventually, an accumulation of broken components on Tom’s car will lower his expected resale value.
An auto extended warranty would have kept Tom’s vehicle in good repair, and Tom would have had a more enjoyable ownership experience without the frustration of broken components. Auto extended warranties also replace the need to budget for future repair expenses (how many of us are saving for that now?). Most important, a well-maintained vehicle has greater resale value. Whether owners trade their car in or sell it outright, dealers or potential buyers will take notice of every repair left unattended to.
Most Americans purchase and drive pre-owned vehicles. But with an auto extended warranty, their vehicles could be worth more.
Make sure your auto extended warranty includes the right coverage. Read more here.
Planning to purchase? This information may save you hundreds. Read how auto extended warranties work here.
About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.
Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.
