Buying An Extended Warranty
For A Used Car
What you should consider when buying an extended warranty for a used car. If you’re reading this, you’ve probably already discovered just how much valuable information is available through our blogs and articles. Most of it is very specific, detailed information pertaining to a multitude of subjects within the auto and auto warranty industries.
Some Tips When Buying
An Extended Warranty?
Below, you will find just the opposite. We’ve put together a short and simple list of our top tips. Following this advice will take you a long way towards being an informed consumer and understanding exactly what you are paying for. Remember, an informed consumer is usually a happy consumer.
1. Understand When The Warranty Begins and Ends
- Is there a wait period?
- Is mileage “add-on” or “total” miles?
- How is the expiration date calculated?
2. Is An Inspection Required? Who Pays For Inspection?
- Most good warranty companies do not charge for their inspection and do their best to accommodate your schedule.
3. Know Where Repairs Can Be Done
- All good extended warranties allow you to have your car repaired at any certified facility. Do not buy a warranty that restricts you to only their repair shops.
4. Know How Claims Are Paid
- The best warranty companies pay the repair shop directly by credit card. Some warranties require you to pay the repair in full first and then submit a claim to be reimbursed.
5. Understand the Deductible and How It’s Applied
- Is the deductible a “per-visit” or a “per-repair”? Per-repair can cost you more out of pocket if several problems are diagnosed when in for a repair.
6. Know the Cancellation Policy
- Most warranty policies can be canceled, however some cannot. Typically you will have 30 to 60 days to cancel a policy and get a 100% refund. After the initial period you will receive a pro-rated refund based on how many miles or months you were covered and any claims you may have filed.
7. Is The Contract Transferable To A New Owner?
- A transferable warranty will increase the resale value of your vehicle. Companies typically charge a small fee of $25 to $50 to transfer the warranty.
8. Keep a Copy of the Policy in Your Car
- You’d be surprised by the number of people that have a breakdown and don’t have the warranty company’s phone number or roadside assistance number with them. Always keep a copy in your glove compartment. In fact, it’s a good idea to throw a large baggie in your glove compartment too and use it to store your repair or maintenance records as well.
9. Perform Routine Maintenance
- Always perform the manufacturer’s routine maintenance as suggested in your vehicle’s manual. You’ll actually be accomplishing two important tasks: First, taking care of your car is always a good idea and Not only does this reduces the likelihood of problems occurring and it also can help you avoid a possible claims denial.
10. Always Read the Service Contract Before You Buy
- Ask to see a copy of the contract you are going to buy. If the company you are dealing with will not show you the contract before you purchase walk away, the reputable ones always do. Lastly, if the contract is not clear, beware and ask questions until it is.
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