Price

The True Cost to You

Make an estimated guess of the cost of future repairs you’ll incur in the coming years without the assistance of an extended warranty plan. Next, subtract your figure from the price of the extended warranty you are purchasing. The new value is your true cost for warranty coverage on additional repairs including major breakdowns such as a transmission or ABS breaking system. It is common today to see repair bills totaling in the thousands.

What if You Decide to Trade or Sell Early?

If you decide to sell your vehicle sooner than previously expected, you may transfer your extended warranty plan thereby allowing the new owner the benefits for the remainder of its life. This may become a key tool in your effort to sell your vehicle in a competitive marketplace.

If you trade-in your vehicle earlier than you thought you would, you many cancel the time remaining and receive a pro-rated refund, thus reducing the total cost of your extended warranty plan.

Be sure to follow the procedures for both transferring and cancelling spelled out in the extended warranty contract as many warranty companies have stipulations that must be followed closely.

Getting the Best Price

Should you negotiate for a better price? It doesn’t hurt to try. If you are at your local dealership, start by asking the salesperson for a $500 discount. Tell them you’re aware of many online deals available, including websites selling the same programs at deep discounts! You may not get the full $500 off, but you’ll be positioning yourself for a discount at some figure. In my experience, most dealers and online sellers will settle for very little profit.

What if Your Dealer Won’t Discount?

If your salesperson acts offended when you ask for a big discount, give him a big smile, you’re playing his game now! But hold your ground. You may get the price you’re looking for. But if they won’t budge on the retail price, just say no to their offer. In most cases, the same factory or aftermarket extended car warranties are offered online, some at deep discounts. With a little research and effort, you will find the right auto extended warranty at a price you can afford.

Should you buy at your local dealership or shop online for your extended service contract?

Be sure you know what situations to avoid when making a claim and collecting from your extended warranty company.

The financing manager will present his sales pitch, asking you to buy a vehicle extended warranty.  Automobile extended warranties are a guarantee that repairs on mechanical and electrical components for your vehicle will be paid for by the warranty company. This is protection coverage that begins after your vehicle’s full factory warranty expires.

Let’s say you plan to keep your car after its original factory warranty expires. Should you purchase an automobile extended warranty? Ask yourself these questions, they might help you decide;

1. Do unexpected auto expenses cause me great anxiety?
2. Could the cost of replacing an air conditioner or transmission strain my monthly budget?
3. Would I sleep better at night knowing major vehicle repairs are covered under warranty?
4. Can I afford the increase in my monthly payment?

If you answered yes to some of these questions, you could be a good candidate for an auto extended warranty plan. But make a wrong move here and it could cost you hundreds of dollars.

Extended Vehicle Warranties Sales are an Important Income Stream for Your Dealer.

Chances are your auto dealer is going to do everything he can to convince you to purchase an extended warranty contract. The dealer markup amount varies across the nation, but aggressive dealers on each coast are known to make as much as $1,000 just from the sale of one vehicle extended warranty.

Don’t be Pushed Into Buying at Their Retail Asking Price.

Driving worry-free from repairs is a nice idea, but paying too much for the privilege isn’t smart. You can and should negotiate a better price. Start by asking the salesperson for a $500 discount.  Tell them you’re aware of all the online deals available. You may not get the full discount, but you’ll be setting the stage for a discount at some figure. In my experience, most dealers will sell their service plans for as little as 2-3 hundred dollars profit. That’s the deal you want!

Your Dealer is Not the Only Provider of Good Auto Extended Warranty Plans.

If your dealer won’t budge on the profit margin, decline their offer. In most cases, the same factory auto warranties and excellent aftermarket extended car warranties can be found online, many at deeper discounts. With a little research effort, you will find an auto extended warranty that’s right for you at a price that won’t break your budget.

You know you’ll get the hard close from your dealership on the extended warranty, but how should you respond to their “take-no for an answer” attitude?

Consumer Reports rarely forgets to comment about auto extended warranties. But are they right this time?

If you have an extended auto warranty on your vehicle, you don’t have to worry. Yes, your vehicle will still need repair, and delays are inevitable, but your expensive repairs are covered. Even the tow bill is covered. How much better does your vacation feel now?

Are extended warranties worth the price? All vehicles eventually break down, but extended vehicle warranties can save you time and money in the long run. For many of us, one large repair bill can pay for the entire extended warranty cost. You’ll still have to pay for routine maintenance on your vehicle, but auto breakdowns can be even more costly. One big repair bill covered by your extended car warranty (like an A.B.S brake system, air conditioner or transmission failure) will convince you that having a good extended auto warranty is the best way to go.

Is it an Advantage to Buy at Your Dealer?

If you plan on having your car serviced at the place of purchase, it does make sense to buy at your dealership. But many auto owners are searching online today for better deals because doing so can save hundreds. In some cases, the identical dealer warranty plan can be found through online distributors at discount prices. Manufacturers GM, Ford and Chrysler have discount online outlets for their factory extended warranty plans. A quick search reveals their locations.

Do You Need an Auto Extended Warranty?

I have always felt auto extended warranties offer a great value in the market place. With the annual increases in dealership parts and labor costs, protection from these rising costs makes good sense.

Before you purchase, think about the answers to these questions;

1. Does the thought of unexpected auto repairs make you feel nervous?
2. Could a major repair bill strain your budget?
3. Would you feel much better knowing you don’t have to worry about car repairs?
4. Can you afford the increase in your monthly payment?

If you answered yes to these questions, you are a good candidate for an auto extended warranty plan. Follow the buying advice in this blog and you’ll find the best extended auto warranty plan at the best possible price.