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How to get the best Price from an Extended Warranty

In General by Josh S0 CommentsLast Updated: May 20th, 2019

car marketplaceIf you are unable to afford a new car, you always have the option of a used one.

However, the car’s manufacturer’s warranty expires after a certain duration of time. The seller extends an extended warranty. A warranty protects you from unforeseen repairs. It is the manufacturer’s guarantee that the car you have purchased is in working condition.

If you are looking to get the best price from your extended warranty there are a few crucial factors that you need to consider.

Tips when getting car extended warranty

Evaluate the need for extended warranty

A new car will come with the manufacturer’s warranty. It is their way of saying that they have confidence with their product and should any issues arise they are willing to fix it. The manufacturer warranty comes to an end and you may need an extended warranty. The first thing you need to evaluate is whether you really need it. Car reliability will be a determining factor. You can inquire from other car owners who have the same model as yours on the challenges they encounter with their cars.

Once you have made the decision to get the warranty you need to get it as soon as possible. Cars wear and tear and this causes the warranty to become more expensive. There is also the issue of inflation. The longer you wait the more it will cost you in dollar terms.

Consider different providers

Do not just go for the dealership extended warranty. Shop around for the best price. Inquire from the providers what is covered by the warranty and compare offers. Most of the dealers have extended warranties from the manufacturer or they offer their own. You should read the fine print before making payments. If you are getting a warranty from a different service provider it is good to ensure that the dealer is reputable.

However, reputable service providers tend to charge extra for their services. Since the dealer is going to be taking care of your spare parts you need someone who has solid financials. Not one who will file for bankruptcy after a few months. You can contact some of your family members or friends on the quality of their services.

Before signing in the warranty negotiate the price. It is not fixed on stone and the dealers are always willing to sign in new clients.

What is offered?

Once you have negotiated the price you need to read the fine print to find out what you are getting from the extended warranty. Typical warranties will have things like roadside assistance and car rental reimbursement, and travel expense warranty. The more the list of items offered the better the warranty. Warranties differ and one particular item to look at are the deductibles.

If you have an auto repair some of the service stations will charge you for it. Look for one where there are zero charges for deductibles. Just like home appliance systems some of the service providers will offer a 100% money back guarantee. This ensures that you get your refund should you find your policy not satisfactory.

Transferable warranty

In some instances, you can purchase an extended warranty but decide to sell your car mid-term. In this case, look for a service provider who lets you transfer the warranty to the new owner without any additional costs.

Ensure that the warranty you are getting allows you to have the repairs done by a certified technician as opposed to your dealership. A good extended warranty should cover all the car parts that are subject to wear and tear. In the bumper to bumper warranty, you are covered for all the car parts.

Understand your policy

The reason you are getting an extended warranty is to prevent the need to pay from your own pocket. You need to understand what is covered by the policy and whether you will be required to chip in for some repairs. In some instances, the dealer will promise reimbursement but you need to confirm that this was part of the policy. Do not go for those that promise reimbursement because they make take longer to do so, they may require a lot of paperwork or promise partial reimbursement.

Just like it is the case when you are signing a big contract always follow your gut instinct. If the deal is too good to be true then walk away. Look for hidden charges in the contract. You can request your lawyer or friend who understands warranties to accompany you during the signing process. Contracts that encourage you to keep receipts are good because they will carter for them.

Conclusion

Extended warranties cover you from unexpected repairs. Car repairs can cause a huge dent on your pockets especially when they follow each other. Extended warranties have you covered. And there is more, you get roadside assistance depending on the policy and rental call service. Most of the extended warranties will keep your car covered for the next five years. This ensures you enjoy stress-free driving. But, before you settle on a service provider take time to do your research.

Shop around for the best deal and when you find one that covers most of all that you are looking for haggle for the reduction of the price. It is not mandatory to sign in with your dealer for a warranty. However, the dealer may offer some bonuses that have being extended by the manufacturer. You also want to know who backs the warranty. Most of the service contracts are serviced by third parties.

You need to ask yourself whether they are reputable firms with the financial muscle to handle the repairs. If you plan to sell the car during the term of the warranty ensure that you can transfer the warranty to the new owner without any hidden costs. Just like any contract that you sign the devil is in the fine details. You need to get it clear what is being covered by the warranty. Also, ask how they handle claims and reimbursements.

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