You may have the opportunity to add extended warranty coverage to your car purchase either at the time you purchase your vehicle or at a later time. You’ve probably heard arguments on both sides on whether or not to purchase this extra coverage. Even if you have researched the car you’re buying thoroughly, you never know what lies “down the road” (if you’ll pardon the pun).

If you do have to pay for a major expense to get your car fixed, an extended warranty can certainly come in handy. On the other hand, adding a costly extra payment to your vehicle can be discouraging. You may have budgeted for a specific amount and reached an agreement on the highest amount you can afford to pay possibly. Then you discover that an extended warranty is going to add on an addition $50 or more per month during the 18-month period. Ask the dealer how much it will increase your payments upfront, rather than wait until you get to the end of the contract negotiations.

It’s best to find out what it is going to cost you, what it includes, and how long it is in effect before you move forward with the contract.

Tips to Take With You

Here are some tips to take with you when you buy your next car so that you can make an informed decision about your warranty coverage.

Extended Warranties are Sold after the Sale

It’s hard to figure at the extended warranty price as you’re shopping for a vehicle because these offers are normally presented at the end of the transaction rather than at the beginning. But, even though this is often the case, you can do something to make sure you understand before you buy!

You can take it with you

In the case of auto warranties, you can take it with you. You should ask the sales representative to let you take the information on the extended warranty home with you so that you can carefully read over the agreement before making a final decision. Read the fine print and conditions so that you’ll know what you agree to.

Salespeople often wait to present the extended warranty at the end of an agreement to catch you off guard because you have often already agreed to the other terms and conditions. They think people will agree to this on an impulse and they think of it as insurance in case something happens to their car.

They don’t think about all of the things the warranty does not cover and this is what you need to find out when you take the policy home. Doing your homework now can save you a lot of money and headaches later.

Don’t let the salesperson pressure you

With a purchase as large as a vehicle, you have the right to take your time with your decision. If the salesperson pressures you and says the warranty must be purchased right away, you should consider delaying your final decision until you have read everything in detail. It’s just not worth the headaches you will have to deal with later if you fail to take your time at the front end learning all you need to know about how it will work.

Some Great Advice

One way you can be a step ahead of the game is to be direct and take the first step regarding your warranty by asking the salesperson for information on the extended warranty long before you get to the final paperwork. If the sales representative understands that this aspect is important to you, they may be less likely to pressure you to purchase at the end of the deal.

Why Purchase an Auto Warranty?

You may wonder why even consider an auto warranty if it may not cover what you need it to cover? That’s the point. You do need an extended warranty in most cases. An extended warranty allows you to have things worked on should a part go bad that you thought was in good working order when you bought it. But warranties do not cover every part. They also have specifications or contingencies that must be adhered to in order to redeem your warranty.

A warranty is a type of insurance that most buyers don’t think they’ll ever use. This is why many buyers decide to forget purchasing an extended warranty completely. But is this the best decision to make?

Car insurance is required, but warranties are not. So this is considered an extra type of insurance that many feel they don’t need. But, like insurance, you only need it when you have a problem with an auto part. When something does go bad, do you really have the $1000 or more it might take to replace the defective part?

Reasons for Purchasing an Extended Warranty

Below are some of the most popular reasons that people purchase an extended warranty. Think about whether any of these reasons apply to your situation.

• Helps cover the cost of unexpected repairs
• Avoids having to use your savings for car repairs
• Helps you maintain and keep up the value of your vehicle

The main reason people purchase extended warranties for their cars is for peace of mind. Like insurance, you can consider how much of a gamble you wish to take when you are purchasing a warranty. Consider whether you think a new or slightly used vehicle is likely to need a $1,000 repair job over the next 18 months. If you think the risk is low, you can forgo the warranty or get a smaller warranty.

Intelligence is the Key

We’re not talking about being smart, here. We’re talking about “intelligence” as in information. If you have a keen knack to research and you find out the entire history of a car, talk to the dealer, and even the previous owner, you can gather the intelligence you need to make an educated decision. If you find out the motor is good, but the alternator is a potential problem, you may want the extended warranty because the chance of the alternator needing a replacement over the next year is good.

It is a gamble when you purchase an extended warranty because you are putting down your money in case something significant goes wrong with your vehicle past the time that your normal warranty is in effect. Find out when the normal warranty expires first, then estimate the risk and assess how likely it is that you will need to have a significant repair done within the period covered by the warranty.

If you are purchasing an older car, chances are the extended warranty is not going to cover as many things as the warranty you are buying for a newer model car. But there are exceptions. If you purchase a sports model, for example, the likelihood of having something go wrong may be more significant since these cars are often more delicate or prone to malfunction. As a general rule, the more complicated a vehicle is, the more likely it is that it will have something go wrong. Keep this rule in mind when shopping for a car and considering whether you want to lay down your money for an extended warranty.

How to Find Information About Your New Car

If you are wondering how you can find out more about your vehicle, there are many places you can go to find this information.

• Kelly Bluebook
• Carfax
• National Vehicle Registry
• Auto DNA

These are some of the best sources to go to online to find out about a VIN that you are considering purchasing. There are other ways to get this information, though. If you are good at accessing public records or you know the car was produced or sold in your immediate area, you can find the information using simple OSINT (open source intelligence) techniques such as court documents, vehicle registration information, and collision history, all of which are available in the public record through the Freedom of Information Act.

How to Reduce Your Risk

Even if you think the chance is low that your new car will have repair issues within the next year and a half or so, you may still want to invest in an extended warranty. Like a computer, machine, or any product that is based on mechanical working parts, these parts can go bad from time to time.

They will eventually break down, wear out, or need replacing and it is up to you, the owner, to take care of your vehicle. This is not only a responsibility you have to yourself and your family to make sure your vehicle is maintained and taken care of, but also a responsibility to other drivers.

If you let something go that is in need of repair, it could cause an accident or mishap involving other drivers. In some cases, you could be held liable for the damages if you knew it was a hazard but you did not get it fixed.

The main reason people do not get repairs done that need servicing is the cost. Even for people who have an emergency fund, finding the extra money needed to get the repairs done may be difficult.

Best Predictor of the Future

You may have heard the phrase, “The best predictor of the future is the present.” No matter how good of a car you get driving it off the lot, how you maintain and take care of your vehicle over the long term is the best indicator of future problems or mechanical failures than any other factor.

People put too much stock in where their vehicle was manufactured, the make and model, and how new it is. Certainly, these factors can affect the quality of the vehicle you get. But more important is the way the car is cared for after the sale.

Additionally, people who hold an extended warranty for a vehicle they have purchased increases the likelihood that they will get the necessary repairs done so that their vehicle is safe on the road and needs fewer repairs later on.
When do you pay for repairs under an extended warranty?
This will depend on the stipulations and regulations of the extended warranty that you sign up for. Some warranties require you to authorize a repair with your credit card ahead of time and apply for reimbursement later. Others do not require any money upfront at all. You just call in the number and information about your warranty and the company will pay for everything after showing your proof of warranty.

Is there a deductible?

Some warranties have a deductible that you must meet first. Like insurance, if your policy has a deductible, this means that you must pay in a certain amount (the amount of your deductible) before being able to use your warranty. Once the deductible is met, you will be able to cash in on your extended warranty which will pay the rest of your bill for repairs.

Replacement Parts

Regarding replacement parts, it is important that you are aware of the policy on your warranty agreement. Some allow you to get new parts and some may only source the parts from a wrecker service. If your warranty says this, you cannot get new parts. Your parts will only be obtained from wreckers, meaning that some parts may not be in as good of condition and this can lead to further repairs later.

Repair Restrictions

Does your extended warranty have restrictions on how much you can apply the warranty? For example, many warranties do not allow you to utilize the same warranty for the same part more than once. This can be a “Catch 22” situation for many people when they have to settle for second-hand parts and then it tears up again. What is the use of a warranty under these conditions?

Does a warranty have cash value?

A warranty does not hold any cash value other than the value that is included when having repairs done under the warranty. In other words, you cannot make any money from it, unlike some insurance policies such as Universal Life, which allow you to get cash out of your policy if you need it.

Warranties work by agreeing to take on the expense of the repairs rather than you having to pay for them yourself. But again, warranties do not cover everything. Read the fine print before signing!

Questions to ask a dealer

Most dealers are fairly honest in most cases. They just leave out information they don’t want you to know. For example, they may not tell you that the car has been in a flood or that it has minor hail damage. You may be able to see hail damage if it is severe, but you may not notice it if it has had body work or a paint job done before being placed on the lot.

You can find all of this information out on your own by applied research techniques. You don’t have to have a college degree to do the right research. Sometimes, you can even find information on the VIN number by typing in the number online and looking at the results you get.

But, to have an idea of what kind of vehicle you are getting and the level of risk you may be dealing with, ask the following questions when talking to a dealer about a vehicle.

• Has the vehicle ever been in an accident?
• Has it been in a flood or fire?
• Has the car been stolen or vandalized?
• What is the condition of the important mechanical parts?
• What is the repair history of the vehicle?

To make sure you’re being thorough, you could also ask whether the car has been maintained properly by the previous owner. All of this information is found in the CarFax report or on Kelley Blue Book, but it’s good to hear it from the dealer, as well.

If the dealer is honest, they will tell you the answers to your concerns and questions. If they are not, you do not want to deal with them anyway. This may be a good test on whether you want to continue with the contract or take your business elsewhere.

Some Final Advice

When offered an extended warranty, don’t feel pressured. Do your homework, take it home and look at the fine print. Then come back the next day with your answer. It doesn’t hurt any to make the salesperson sweat a little. Their goal is to close the deal. But you should only feel comfortable doing so when you are thoroughly familiar with what you are getting on both the vehicle and the warranties.

The post What should I know about Extended Auto Warranties? appeared first on AutoPair Warranty.

When it comes to warranties on brand-new vehicles, you are typically given two different warranties. The powertrain warranty is the longest of the two because it only applies to the costly but rugged mechanical parts of the drivetrain itself. The bumper-to-bumper warranty is there to cover everything else in between. However, this warranty is generally for a much shorter duration of 2 to 5 years at most.

Yet, when it comes to warranties, the devil is in the details. Some warranties may flat out exclude repairs of certain items. Others may claim that the warranty is void if you make any modifications or install anything other than factory parts in the new vehicle. In most cases, the factory warranty is only valid if you follow the factory-recommended maintenance.

You must also have any repairs or maintenance carried out by the dealership for the term of the warranty. This is an easy way for the dealerships to generate funding with their inflated part prices and labor rates. It is an additional hedge against the costs of performing any warranty work. They may charge you $150 for each oil change, 6 times during a 3-year period.

Technically, the dealerships are not allowed to void the warranty under the Magnuson Moss Warranty Act. That is unless the dealership demonstrates that the repairs or modifications created the current issue.

This may seem impossible to prove conclusively, in many cases, where the parts you installed did not fail. However, they can always make a professional assumption that the aftermarket parts or unauthorized repairs were somehow to blame. This is because all the electromechanical systems of the vehicle are so intermeshed.

Therefore, it is not advisable to put yourself on thin ice by trying to argue that that modifications did not void the warranty. Good luck convincing them that the oversized intercooler and turbo piping that you installed did not lead to your turbocharger burning out.

A warranty is a good thing because it will protect you against the obvious defects in manufacturing. It is your first line of defense when purchasing a new vehicle before Lemon Laws might apply. Some manufacturers offer warranties that cover the vehicle for as long as 10 years or 100,000 miles as a method of ensuring customer satisfaction and quality.

One problem with warranties, however, is that they do not cover what is termed “normal wear and tear.” Normal wear and tear can be anything that cannot be pinpointed to a manufacturing defect. Therefore, your brakes, steering parts, suspension, and even your wheel bearings may never see any warranty work.

At this point, the manufacturer will say that they commonly wear out at this time and that you are responsible for replacing them yourself. Wheel bearings often go bad because the driver speeds and exposes them to excessive heat. Brakes likewise are wear items that have a variable life depending on how hard you use them. All that a warranty really covers, then, is the premature failure of specific itemized parts that are guaranteed to last so many years or miles.

What Does a Bumper-to-Bumper Warranty Cover?

A bumper-to-bumper warranty is a comprehensive warranty that is meant to ensure the lifespan and function of your vehicle from bumper to bumper for the length of the warranty. It may be a good idea to get an extended warranty on this type of comprehensive coverage if you are able to make the right deal for your needs.

Although many say that a bumper-to-bumper doesn’t cover the bumpers themselves, they may be wrong. Many modern uniframe cars have bumpers that are fitted with explosives to repel the force of an impact. If these explosives were to go off prematurely or the bumper was to come loose, you should certainly be entitled to coverage. The same would be said for a front fascia or the mounted bumper of a truck.

Although cosmetic wear and tear would not be covered, defective manufacturing processes may be covered. One example is paint peeling prematurely for no reason. This should certainly fall into the range of items covered. But, of course you would have to ensure that all this is written in the contract. This is because contracts are strictly construed and can only be interpreted to cover what is expressly itemized.

The items that are typically itemized in a bumper-to-bumper warranty are as follows:

A bumper-to-bumper warranty will often expire before the powertrain warranty. The powertrain warranty covers all the internal pieces of the engine and transmission. The powertrain warranty may cover differentials, driveshafts, and other items.

Most of the powertrain warranties are limited to manufacturing defects that may cause these parts to deteriorate or fail before a set mileage. In most cases, the powertrain warranty will even cover engine gaskets, seals, timing chains, and other smaller parts besides the forged metal precision parts.

What Are the Benefits of Bumper-to-Bumper Warranties?

Even if you never have to make a claim on your bumper-to-bumper warranty, it is an excellent method of pre-allocating any repair costs. This eliminates the stress of worrying about breakdowns and major repair bills. Some warranties will even offer free rental cars if the repairs take longer than a day.

One thing that you should double check before you commit to a bumper-to-bumper warranty is service coverage. Check whether it will be redeemable at any dealership or repair shop nationwide. You need to have a certain level of flexibility if the warranty is going to work for your lifestyle.

You can also purchase bumper-to-bumper warranties for used vehicles that you buy on the private market. These may require an inspection to assess the condition of the vehicle before a policy is created. The warranty provider may limit the number of places where the automobile can be repaired and limit what is covered under the warranty.

In any case, the warranty work will come at a cost because a deductible is used to prevent fraud. It is easy for someone to sabotage a system this is under warranty to upgrade their vehicles. If there is some gray area about whether it is covered and a cost to pay, they are less likely to try.

A mechanic can tell if a vehicle was operated in an excessive manner or modified to cause the failure. Therefore, most of the fraud that occurs in warranties is from the sellers who take money but never provide protection when it is needed.

For this reason, you have to be careful about which companies you trust. Ensure that you always work with an established business that is not going to go bankrupt before you can redeem your warranty.

The same is true with extended warranties that are available for vehicles that are approaching the end of their factory warranty coverage. A third-party warranty provider can step in to save the drivers from having to purchase a brand-new vehicle. But, if the drivers select the wrong third-party warranty provider, they will have nothing to show for it.

The advantages of third-party warranty providers boils down to competitive rates and broader options for service. You may not have to take your vehicle exclusively to a dealership. The dealerships charge up to 8 times more for parts.

A new Electronic Control Unit (ECU) from an independent shop may only cost $100. The dealership may demand $800 for the same item or void your warranty. This is often why the rates are more reasonable from third-parties. They may offer more flexibility to dodge the dealership monopolies and price gouging.

Conclusion

A bumper-to-bumper warranty provides drivers with the comprehensive care and peace of mind that they need to buy brand-new automobiles. This should be the case because even a $100,000 vehicle is just about worthless if it doesn’t start. A bumper-to-bumper warranty also forces the manufacturers to build their vehicles to a higher quality level. They don’t want to tie up the lifts of the dealerships and upset customers with frequent repairs.

You should shop for a third-party warranty to take advantage of substantial savings. But, you should also be careful about which warranty provider you choose and which plan. Do some research on the parts that are likely to experience problems on your model. This way, you can put a small cap on the coverage to cover these parts and pay the lowest price possible for protection.

The post Blog-Bumper to bumper warranty: coverage and should you buy it? appeared first on AutoPair Warranty.

Purchasing a new car is a big investment and a tough decision to make when you are busy. You have work and other obligations to deal with and don’t have time to research the best buy. The car dealerships are there to streamline the process but may take advantage of your ignorance and alacrity.

They do this by padding up the bill with all sorts of overpriced extras. Among those extras, the financing specialists tend to push all sorts of additional protections and coverage down your throat:

They have the calculator there to tell you how little it will add per month when spread out over a 60-month auto loan. When they put it that way, it can seem like sacrificing a few dollars a day saves you from a lot. However, the dealerships are not always there to make the best deal for you. So, you should always compare plans and decide whether the dealership’s offer is really the best choice.

Don’t fall for the high-pressure situation when they have you tied up in their dominion. You are always free to walk away and compare the numbers. In the worst-case scenario, the competitor’s price can be used to negotiate a better rate if you do decide on dealership extras.

What Are the Main Types of Warranties?

Warranties are usually broken up into two main categories. Most brands focus on the first type, a robust 5- to 10-year powertrain warranty that covers the following:

The bumper-to-bumper warranty is the second type that is often limited to a mere 3 to 5 years. This warranty covers all the body system components such as the following:

The only thing that these warranties won’t cover is normal wear and tear to the following:

Warranties will also exclude any cosmetic or body damage that you incur on your own. Now, if the paint all peels off for no reason, you can expect a replacement.

The warranties will also have some additional obligations that prevent you from modifying your vehicle. But, you may be able to modify some non-mechanical issue like installing a body kit or seat covers, etc.

The warranty will generally prohibit you from taking the car for service at an unauthorized repair shop. This means that your warranty protections can be voided if you get your oil changed at the zippy lube around the corner. In addition, the warranty often requires you to have regular maintenance performed at an authorized dealership. This requires you to pay for pricey factory parts that are marked up outrageously.

These factory warranties are important because they act as a safeguard for lenders to prevent you from defaulting on your loan. For example, you can enter into a 5-year financing plan on a vehicle that develops a no-start electrical issue. It may cost endless sums of money to pinpoint and solve.

You may ultimately decide that it is impossible to do anything other than ceasing payments. It may be smarter to take a hit on your credit report just so that you can buy another vehicle and retain your job. As a result, dealerships have to provide these warranties to ensure a good reputation with lenders.

What is an Extended Warranty?

An extended warranty, in the general sense, is an extension on the protections available to you when you buy a new auto. Opting for an extended warranty requires you to pay thousands of dollars for additional protections above the standard coverage. An extended warranty is usually sold at car dealerships with brand-new vehicles. The basic factory powertrain warranty coverage on such vehicles may be as short as 36,000 miles or 36 months. However, extended warranties come in all shapes and sizes and may even be customizable to the needs of each customer.

How Much Do Extended Warranties Cost?

The average extended warranty has an entry price of $2,000. When you purchase this from a dealership, however, you may pay $500 or more in maintenance during a two-year period. On top of this, there are different deductibles that can lower or increase the price of an extended warranty. So, if you have to have a $700 repair and your deductible is $200, you have only gained free oil changes.

Furthermore, you have to read the fine print about what all is covered. Find out whether the company will reimburse your payments or pay the mechanic directly. You should also ask whether you are able to shop around for a competitive price on repairs. Some companies may only allow the service to be performed by authorized repair shops.

On top of this, you have to consider how many times you might use the warranty during the coverage period. If your deductible is too high, you may wind up with very little benefit. Of course, a plan with a low deductible will cost more in general. Finally, you should also find out whether you need pre-approval for repairs and how coverage is determined.

What Are the Different Types of Extended Warranties?

Extended warranties are broken up into two main categories. You have those offered by the dealerships and the competitive packages offered by third-party companies. The factory warranties continue your obligations to have all the service, maintenance, and repairs carried out at an authorized factory service center. A third-party warranty generally allows you to have your vehicle serviced at any repair shop.

Both warranties may have a deductible and a cap that is negotiable just like car insurance. In either case, drivers must speculate about how much protection they may need. They must also consider the resale value of the vehicle at the end of the warranty.

Should You Fix Your Vehicle By Yourself After the Warranty Expires?

The automotive market is changing rapidly. Like all other fields of science, specialization has taken over the trade. Having a car serviced and repaired now requires a lot of specialized tools and training.

You are not going to find the same universal issues occurring in the same manner across manufacturers. Each manufacturer, model, and even production run is prone to incurring highly technical problems. These problems would be impossible to diagnose if you did not know that these issues were trending in a specific line.

For example, the 1.8T turbo engines that were originally being run in Audi and Volkswagen vehicles were poorly engineered. They were designed with an oil sump that was too small for the oil cooling needs of the engine. Dealerships were not properly advising customers of the high-grade synthetic lubricants that they needed to run.

As a result, vehicles that were fitted with this early production oil pan would burn out their bearings. The engines would seize up with as few as 50,000 miles on the clock. This was often due to coking and sludge from the oil burning up in the oil pump pickup screen and oil cooler lines.

For this reason, you should not expect to be able to fix your vehicle by yourself once the warranty runs out. The learning curve and investment into proper tools have become much steeper. If you want to fix your vehicle after the warranty expires, you also need flexibility. You have to keep open the option that your vehicle may require a specialist. Only a specialist may know about the particular problem that you are experiencing.

The dealerships mostly perform maintenance on vehicles and rarely get into the types of repairs that require skill to pinpoint and diagnose. They are happy changing oil, brake pads, and making time on the easy work of brand-new vehicles.

The independent garages that are focused on building a customer base are better suited for repairs. They don’t have to gouge to pay overhead. Their paychecks are often based on making a set quota of work for the day and getting a job done in a reasonable budget.

A lot of systems may need to be overhauled as they age. Rubber bushings go bad, steering components and suspension wear out, bearings start to whine. If you don’t keep up proper maintenance as parts start to fail, it can be difficult to figure out what is causing a running condition.

When your vehicle is under an extended warranty, you will stop in for checkups more often. The mechanics will have a greater desire to maintain a good working relationship with you. This means that they will recommend the proper services and help you keep your car going longer. Then, when something breaks that is covered under the warranty, they will have an easier time solving the problem.

Having an extended warranty also works to your benefit when a car shop does shoddy work. This happens when you have a reoccurring problem that should be covered by the repair shop’s warranty. Your warranty provider may be able to help you enforce that coverage so that they do not have to foot the bill again.

Benefits of an Extended Warranty

Repairs Are Expensive: When you purchase an extended warranty, you can hedge against major repair bills. If the transmission clutches burn out or the plastic components inside of it breaks, you are covered at 100,000 miles. If a water pump on your engine seizes, your extended warranty is there to protect you. This altogether will save you from having to enter into a debt treadmill of monthly car payments for the rest of your life. It will also protect you from unpredictable expenses that you can’t afford. Something as basic as a single tooth sheared off a timing belt can destroy an engine in seconds.

Custom Packages: You can research the components in your vehicle that are most prone to failure. This can save you considerable costs on covering items that are known to be well-engineered. You can purchase protection for just the powertrain or add on the extras. You should buy full coverage on a long-term plan when if you are unsure about the quality of the vehicle or it is super expensive to repair.

Stress Elimination: If you are able to pre-allocate the costs of potential failures in advance, this eliminates the speculation of a breakdown. Sometimes, the worry about what can happen in a vehicle can be greater than the reality.

For example, you may put off taking the at trip out of state. You might be worried that your vehicle will breakdown on a month when you are running behind on bills. Taking the worry out life’s biggest expenses is a huge relief. Paying for the risk coverage that you can afford upfront takes a world of stress off your shoulders.

The Downside of an Extended Warranty

Underutilized or Never Needed: The entire concept of warranty extension relies upon probability. Therefore, many drivers who opt for it will never use it or underutilize it. This is the only way that it would be possible to pay for your repairs beyond the purchase payment of the plan itself.

While this may be a gamble, many will find it worthwhile. Just think of the peace of mind and stress elimination it solves. Yet, at the end of the day, you may not care about your car breaking down. Many drivers are happy to buy a new one if it comes to that. If you like brand-new cars, saving thousands of dollars by avoiding an extended warranty is fine.

Holes in Coverage: No matter what warranty that you buy, not everything will be covered. You will still be on the hook for keeping up basic maintenance such as the following:

• Air filters
• Oil changes
• Gear oil changes
• Timing belt changes
• Tire rotations
• Brake fluid flushes
• And replacing any parts as they wear out

You have to be careful about investing in an extended warranty if you do not have a good mechanic. You need a shop who will cut you overhaul deals as components simply age on your vehicle. The dealerships and even commercial chains often charge piecemeal prices that can make the cost of basic maintenance repairs unaffordable. It can easily cost more than a new car if you try to hang onto your vehicle as it ages.

Unauthorized Service Centers: Your extended warranty contract does not allow you to take your vehicle to the mechanic of your choice. In this case, you may find that the warranty traps you within a local area. If you take that long road trip, you might wind up footing the bill yourself. The shops in the area where your car breaks down may not be affiliated or authorized by your warranty plan. You really need to read the details to ensure that the coverage that you obtain is flexible enough for your lifestyle.

Conclusion

Never enter into an extended warranty in a high-pressure situation. Know that there are many independent services that offer competitive warranty contracts that can provide you with more benefits than a dealership. Before you enter into an extended warranty, do some research on your vehicle. Note issues that you might expect as your particular vehicle reaches the 5-year mark, the 10-year mark, etc.

Finally, when comparing third-party warranty services, be sure to make a key comparison between these specific items:

• Reasonability of deductible costs
• Authorized service centers
• Your out-of-pocket maintenance obligations
• How “normal wear and tear” is determined
• How big the holes are in the coverage
• Transferability of the warranty
• Manner of payment, reimbursement or direct to mechanic
• Whether parts and labor are included
• The cap on coverage under the plan
• Whether the plan requires pre-authorization for repairs
• Whether rental cars are included, and if so, how much

We believe that extended automotive warranties are the ideal lifestyle choice. It is perfect for drivers who want to get out of the financing loop. You should buy this extra protection if you drive cars for many years after the warranties expire. The complicated nature of automotive repair on late-model cars is making it difficult for owners to take care of these repairs themselves.

An extended warranty can help you keep up maintenance and extend the life of your vehicle. You will no longer fear the bill when you take visits to a repair shop. But, like anything, the quality of the plan and the established reputation of the provider are key. The details can mean the difference between a good deal and deal that does you no good.

Be sure to work with a warranty company that has been around for a while. Also, find one that works in enough volume to hedge against losses. You never want to sign a deal with a company that goes bankrupt in a few years and leaves you with nothing.

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