Extended Warranty Reviews
- Buyer Beware
Auto Extended Warranty insiders hear horror stories of all kinds, first hand. Here are some of the most outrageous, but also common, lies that some sales representatives have been known to tell potential customers.
• Lie #1 In order to qualify for auto dealership financing, you must purchase an extended warranty at the same time. This is usually followed by a strong hint that spending more money on an extended warranty or other add-ons will help you qualify or save on financing at the dealership.
Never fall for this blatant falsehood. Purchasing add-ons or an extended warranty will never increase your chances of being approved for dealer financing and the bank never requires it. Qualifying for financing depends on only three numbers: the purchase price of the vehicle, your down-payment or trade-in and your credit score.
• Lie #2 The dealership is the best place to buy an extended warranty. That was true 15 years ago, but not since the world went online! Things have changed. For example; this is the first time in American history that consumers have to be concerned about the survival of their car dealer. Most professional analysts forecast that at least several thousand dealers will be out of business in the coming year and no one is sure which ones will survive these economic times. So, will the dealership be there when you need them? Many people are influenced by the convenience of the dealership warranty; but have given little thought to what would happen if you returned there only to find the doors closed. Or, worse yet, what if they filed bankruptcy? Your warranty could be worthless.
You’re looking for peace of mind, right? To find that, you might be better off purchasing from a reputable company that allows your car to be repaired at any dealership or certified repair facility. Lastly, relaxed rules, about where you take your vehicle for repairs, allow you to relax while traveling away from home.
• Lie #3 “You need to buy today. If you don't, your vehicle may not qualify” or, “this special price will not be available”. These are both outrageous and a signal that something isn’t quite right. You wouldn’t believe how many people fall for it. It’s also a sure sign that you are dealing with a broker working in a robo call-room just trying to sell you a warranty as quickly as possible so he can move on to the next sucker.
• Advertisement Lie #4 “Buy from us at 60% off!” The big question is, “Off what?” If you haven’t done your homework, collecting at least 4 quotes from reputable companies not offering 60% off, how would you know what 60% off means? You will also need to compare details of the coverage. Are they comparable? Lastly, ask yourself this, “If I had a great product, why would I offer to sell it 60% less than other companies?” Or, why haven’t those companies brought their prices down to match? The answer is simple. To a certain extent, you really do get what you pay for.
Of course, this is not a complete list. But this short list should at least equip you to deal with the biggest and most common whoppers out there.
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