One Way To Avoid Car Warranty Scams Online

Thinking about an extended car warranty but heard things that concern you? Consumer trust is essential in the rapidly expanding online marketplace. Unfortunately, there are con artists who try to pass themselves off as legitimate, reputable online businesses in every industry. Their scams not only harm individuals financially; but also destroy consumer confidence in Internet commerce.

Here is one quick way to check out an online extended warranty merchant who you’re not familiar with: Ask the company for its physical location (address and phone number) so that you can check on its reliability with outside organizations like the Better Business Bureau (BBB) and other consumer agencies. If a company refuses to supply you with this information, simply return the favor and refuse to do business with them.

Car Warranty Robo-Calls Fed to Take Action

Unfortunately, 140,000 complaints to the Better Business Bureau from angry consumers about those incredibly annoying car warranty phone calls didn’t create enough of a buzz... to stop those warranty scammers who call consumers repeatedly at all hours of the day and night.

However, according to the APS, those exasperating vehicle warranty rip-off artists have finally called the wrong guy. Sen. Charles Schumer, of New York, announced at a news conference this week (May, 2009) that he wants “a more concerted effort at the federal level to stop and punish auto warranty companies who engage in this practice”. This will include the Federal Trade Commission (FTC) wielding more power through the Do Not Call Registry. We Agree, Good Luck Senator Schumer! NOTE: Auto Service Warranty, Inc. is NOT a Telemarketing Company! Even we are getting these types of calls. :-(

Auto Dealer Financing Fact or Fiction

FICTION: In order to qualify for auto dealership financing, you must purchase an extended warranty at the time of purchase. Salesmen often hint that spending more money on an extended warranty or other add-ons will help you qualify or save on financing at the car dealer.

FACT: Don’t fall for this sales ploy. Purchasing add-ons or an extended auto warranty will never increase your chances of being approved for dealer financing. Qualifying for financing depends on three numbers and only three numbers: the purchase price of the vehicle, your down-payment or trade-in and your credit score. Take your time and look for the best warranty coverage, from a reliable company and at a fair price.

Diesel Cars - Time To Buy A Diesel Car?

Diesel cars... has their time come? The gasoline prices of last summer are still fresh in the mind of many consumers around the nation and many potential buyers are finding themselves wondering what the green fuel-efficient alternatives are out there.

Is It Time To Buy A Diesel Car? Gas-electric hybrids have received a large amount of attention recently; but a diesel powered car may be a good alternative for now. Maybe a VW, BMW, Renault or even a Turbo Mercedes Diesel?

Diesel autos have gained a lot of popularity around the world. They account for approximately 50% of new cars in Europe. However, U.S. car shoppers have been slow to gain interest. Even though fuel mileage levels can be around 40% higher with diesels than gas powered cars, diesels only account for 2% of the new cars in the U.S.

You need to know that there is a whole new generation of diesel powered vehicles on the market that are quiet, clean, and much more performance than in the past. For example, the 2007 Mercedes-Benz E320 sedan will prove that this recent diesel technology can be luxurious in addition to giving you 37-mpg.

So rest assured, that the new diesel cars have come a long way and are becoming a real option for more and more drivers. Especially now with more and more models for consumers to choose from. Of course, once you purchase one, think about protecting your investment with an extended warranty in order to avoid budget busting repair costs.

The Best Time to Buy a Car

Car Buying? Knowing the best time to buy a car can give you a huge advantage. The sales staff at most car dealerships operate on a quota system, where they receive a bonus each time they hit their next sales goal for that month. So, if a car dealer is coming up on the end of the month and he's a few cars short of that next target, he or she has an incentive to get the sales manager to knock down the price of a car in order to hit that car buying quota.

Car Buying Tips: There's another reason to look for a deal near the end of the month. Car dealerships themselves also have monthly quotas to hit. If they meet or exceed their sales goals, the manufacturer may allocate more vehicles to that dealership. That gives that car dealership a larger inventory and more vehicle choices for their buying customers. If they don't meet their goals, the manufacturer may cut back on that dealership's incoming inventory of vehicles until the excess inventory is sold.

Car Buying Help: Car sales managers are more prone to shave a little off the car's price if the end of the month is looming and their sales goals have not been met. This is good information to know when buying a used car or buying a new car or truck.

So when is the Best Time To Buy A Car? Happy Hunting!

How To Buy a Car Battery

Picture this, you’re a bit late for an appointment; you jump into your vehicle, turn the key and nothing happens. To make matters even worse, you’re sitting in the parking lot with a car load of groceries. You turn the key again, nothing. Who hasn’t experienced a DEAD BATTERY at the most inconvenient moment? Here is a tip that should help prevent this from happening.

The average life span of a battery is 3 to 5 years. When it’s dead, it’s obvious. Wouldn’t it be great to have a little “heads up” before it dies? Each time you have your oil changed, ask for a “load test” on the battery. That simple analysis will indicate how well your battery is holding a charge.

Buying FRESH Car Batteries

Think of choosing a replacement battery like shopping for a quart of milk, you want a fresh one. We recommend not buying a car battery more than 6 to 10 months old. How you can tell? All batteries have a date code that the manufacture must stamp on the lid or case telling when it was made. Here’s the secret of deciphering their code. The first 2 characters are the most important. Jan is “A” Feb is “B” and so on. The numbers stand for the year. For example a “6” would indicate a battery built in 2006. D8 would signify a battery made in April 2008. More on where to buy a car battery.

How To Evaluate an Auto Repair Facility

Here are two bits of advice... from a retired mechanic to help you find a good car repair shop. The first thing to look for is Automotive Service Excellence (ASE) certification from places like AC Delco, Ford Motor Company or Bendix. While ASE certification does not indicate that they're really good... it does indicate that the technicians go on their own time, or the business has given them the incentive to study, to take the course and go and show their skills are worthy of certification.

You should also take a look around to see that a car repair shop has all the right equipment in place (like a proper tire mounting machine with rubber mounts that don't scratch your wheels or an alignment rack with laser measurements) to do the job well. Updated, proper diagnostic equipment is also important. A shop that has invested in the proper equipment to service today's automobiles is usually a shop that you can trust, because they are not going to buy that expensive equipment and then have people who are not qualified to use it.

Who will pay next time you have a major auto repair? Protect your investment with an extended warranty. Get a Free Rate Quote!

Buying an Extended Warranty from Dealership?

BUT will the car dealership be there when you need them? In 2009... for the first time in American history, consumers have to be concerned about the survival of their car dealer. Most professional analysts project 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.

Many individuals choose to purchase an extended warranty from the dealership... just for the convenience of returning to that dealership for repairs. Have you considered what would happen if you find the doors closed when you return? Bankruptcy is all to common these days. Will the car dealer where you bought your warranty be one of the thousands closing?

Even if you purchased your extended warranty from the dealership, the warranty itself may be from a third party. Feeling safer? Not yet, that third party may be an outstanding, reliable company. However, there is a great probability that the dealer has a considerable period of time BEFORE he has to pass your dollars along to the actual warranty company. In these tough economic times, would you be shocked to find that the dealership used that time and your cash to help solve their own cash-flow problems? Stranger things have happened. Imagine... forty warranties... at an average cost of $2,500 each... in just one month that adds up to $100,000 in Cash. A tempting number to hang onto if it means keeping the doors open.

Be sure your extended warranty provides you with peace of mind you expect from it. For additional security Auto Service Warranty Inc. allows car repairs to be done at ANY dealership or certified repair facility.

Trouble ahead for US Car Manufacturers

Low sales... combined with this Summer's HIGH cost of gas going OVER $4.00 a gallon in many places... and an economy already sputtering... spells trouble for the US car manufacturers. Banks and lenders by getting ever tighter and tighter with their credit approvals have compounded things even further.

Good car buying opportunities should be right around the corner though. So those with the means and a credit score to match will be able to take advantage of some Great Deals waiting for them. However we expect more and more drivers will be keeping their cars longer in the coming years while this economic storm blows over... making an extended warranty very comforting to have.

How Extended Auto Warranty Eligibility Is Determined

The 10 – 120k Rule: So... you’ve been shopping around for an extended warranty for your car or truck and you are more confused than ever. One company has offered you a fair price and a 36,000 add-on mile plan. Another company offered you a better price, but only 24,000 miles – but they include towing and trip interruption insurance. The last company offered five years and 100,000 miles at an even lower rate. It’s tempting to go for the longest time and most miles, but it may not be the smart decision and here is why.

There is a rule of thumb in the extended warranty business. The actuaries, they are the “bean counters” who study the repair history of all makes and models and then set the rates. These experts want the full-service plans to end either on the 10th birthday of the vehicle or somewhere around 120,000 miles. Every reputable company in the country follows this rule. Any company that breaks this basic rule is courting disaster and may not be around when you need them.

There is nothing wrong with searching for the lowest priced auto warranty quotes online and you definitely need to compare coverage; but beware when it sounds just a little too good to be true. It probably is...

Where can I take my vehicle for repairs?

Consumers buy extended auto warranties for their cars and trucks for peace of mind. True peace of mind should include business or leisure travel away from home. That’s why the best warranty companies, like Auto Service Warranty, Inc., allow you to choose your repair facility. You can go to any dealership, national chain (like Sears, PepBoys, etc.) or a favorite local mechanic anywhere in the United States or Canada. Since we also include free roadside assistance and towing up to 150 miles in the U.S. or Canada, you're totally covered no matter where you might find yourself in trouble.

We also have an extensive database with thousands of repair facilities who have already accepted our plans and can even help you locate a reputable repair facility anywhere in the US. You will not find a plan more widely accepted than ours.

Repair facilities are happy to do business with you and us since we pay your claims quickly and efficiently over the phone with our corporate credit card. You simply give your extended warranty information to the service professional and they will contact our claims department directly. Call Auto Service Warranty and speak with an extended warranty specialist who will be happy to answer all your questions and give you a quick quote.

Snowball Effect of the Financial Meltdown

Some of the worst months in the automobile industry since World War II. Two factors have dramatically impacted your buying power. First... regardless of the huge federal bailout, banks are hoarding their cash and financing is tougher than ever. It is not uncommon for many dealerships to ask for thousands of dollars down - on top of the customer's trade.

Second... car dealerships are saddled with large inventories due to the economic slowdown; so they are being especially stingy with trade-in dollars. This situation leaves many owners with only one option... keep that car or truck as long as possible.

The downside of an older vehicle is... of course... the cost of repairs. That's where an extended warranty becomes a life saver. For approximately $350 per year (the cost of an average warranty) you can keep "Betsy" running for three or four more years and sleep like a baby knowing that you are covered. Lastly... Auto Service Warranty provides in-house financing as a courtesy and everybody qualifies. Zero % interest... zero fees. How's that for service?

Avoiding the "Auto Warranty" Scam

Dealerships often save this intimidating trick for customers with less than perfect credit. Please remember that even clients with the worst credit have rights. If you run into a finance manager who starts playing games with the APR... telling you that you must buy the extended warranty... or claiming that the APR goes up if you don't buy the warranty... run for the hills or ask them to put in writing. Tell them the contract must state that the warranty “is required to be approved for your loan"... so you can show it to your State Attorney and the Better Business Bureau. Watch how quickly they back off.

One of the best ways to avoid this situation altogether is not to finance at the dealership... especially if you have bad credit. Look for the best deal online or at a credit union and then search for an extended auto warranty separately online.

Many... like Auto Service Warranty... have 0% interest and zero-fee financing plans to match their already lower prices. Lastly... only the uniformed roll the financing of a warranty into a car loan. Over the life of the loan... you often end up paying two... if not three times the original cost.

The "Forced Auto Warranty" Scam

This is an old trick... but unfortunately still common. You're ready to sign papers when the finance manager says you must buy a $2,500 extended warranty from the dealership “…because the bank requires it... or you won't get the loan". BEWARE! In truth... your FICO score... and only your FICO score... determines the financing deal you are offered.

In a case like that... there is only one reason the dealership wants to sell you an extended warranty... and that is to move more money from your pocket to theirs. Buy the right extended warranty... for the right reasons.

Buying a Warranty for Used Cars - Part #2

Buying a Warranty for Used Cars... continued: Next, don't let anyone pressure you into signing on for an extended warranty before you're ready and you're sure you need one. An extended auto warranty is a contract which covers the cost of certain repairs and problems after the vehicle's factory warranty expires.

Before you consider any warranty, take a close look at your car's original warranty.

• How much coverage is left? One year? Two years?
• A thousand miles? Ten thousand miles?

For example, new cars from Acura, BMW, Cadillac, Volvo, Saab, Mercedes, Lincoln, Lexus and Jaguar are sold with four-year or 50,000-mile warranties. Cars from Infiniti have four-year or 60,000-mile warranties. However many, but not all ,factory warranties get transferred to used-car buyers at the time of purchase. So be sure to check.

Once you determine just how much warranty is left on your used vehicle, you'll need to think about how long you plan on keeping the car. Read our blog on Monday, February 12, 2007... Who should not buy an extended warranty?

Buying a Warranty for Used Cars - Part #1

Just snapped up a great used car and thinking about purchasing an extended warranty?

Proceed with caution. Extended warranties are enormous moneymakers for dealerships. That's why they are so likely to use their best "strong-arm" tactics to pressure you buy one. One wrong move could cost you hundreds, even thousands of dollars.

Also, be aware that some dealers may try to sell you a dealer warranty instead of a manufacturer's warranty. Often with a dealer warranty, all the repairs and services on the car have to be done at a single dealership, theirs. So, if you have car problems while traveling out of town, you may be out of luck. Therefore many feel it's best to steer clear of dealer warranties.

Stay tuned for Part #2 of "Buying a Warranty for Used Cars"

Know Your Rights as a Potential Extended Warranty Customer. Shop Smart!

The best extended auto warranty company is one with satisfied customers. Clients are perfectly willing to pay for value. However, beware of their wrath when they sense unfair play.

Potential extended warranty customers have the right to know all of the details and parameters of a contract prior to purchasing.

1. Rule number one: No surprises!
2. The Customer Service Representative should not spend all their time telling the customer what they want to hear. Clearly explaining the rules regarding wait periods, maximum payouts and behaviors that might void their contract is also imperative.
3. A sample copy of the contract should be available to potential customers as well as a patient representative to explain and answer any questions.

The easiest way that I know of to predict a company’s future behavior is to take a good look at their past. Many extended auto warranty companies list links to sites that monitor their on-line performance, like “Web Assured” or “Safe Shopping Network”. Take the time to view these sites, and Compare!

How-To Find Vehicle Identification Number (VIN)?

The Vehicle Identification Number or VIN number is the unique 17-digit identifier often needed for used car buying. It can be located on most vehicles in several areas.

The most common places to find your VIN number:

• On the driver's side dashboard of your car
• On your insurance card
• On the title to your vehicle
• On the vehicle's registration card
• On a sticker inside the driver's side door

Sounds simple, but when you don't know where it is,
it can be very frustrating. :-)

What Does Extended Warranty Wear and Tear Coverage Really Mean?

Most used car warranty policies are not maintenance contracts and that is okay. That just means that you are responsible for routine maintenance items like oil changes ¤ brake pads ¤ windshield wipers etc.

Many buyers and just as many warranty salespeople... confuse this coverage with "wear and tear" coverage. There is a clear distinction and understanding the difference can be valuable to you.

"Wear and tear" is the expected reduction in performance of a part due to the cars age ¤ mileage and/or use. This coverage should be clearly defined in any warranty contract and it should read something like this: "It is the company's responsibility to repair or replace any part that no longer meets the manufacturer's specs whether it is broken or not." Look for this simple statement and be assured that you will never face the rejection of a claim on the grounds that the failure can be attributed to "wear and tear".
See Auto Service Warranty coverage « here.

Does Your Extended Warranty Cover Overheating Damage?

While many extended warranty companies shy away from damage caused by overheating, Auto Service Warranty takes a much different approach.

Although damage sustained when a vehicle OVERHEATS can be severe... we take care of all repair costs for covered components provided the vehicle does not overheat due to negligence and provided you act immediately to prevent unnecessary damage when your vehicle overheats.

In fact... if your vehicle overheats and you require a tow or fluid replacement, Auto Service Warranty's FREE Roadside Assistance makes sure you get taken care of... Fast!

What is the No In-Service Date Program?

...and why should I care? One major warranty company (that shall remain nameless here) offers a no in-service date program. What's the DIFFERENCE?

Auto Service Warranty (ASW) offers vehicle warranties that BEGIN on the day you buy the warranty and not the in-service date of the car. Quite simply... ASW offers you MORE time than the others.

When you purchase a 4 year/100,000 mile warranty today... it will expire 4 YEARS FROM TODAY or when your ODOMETER REACHES 100,000 miles. BEWARE of plans being offered by other national companies... that start your coverage from the day the vehicle was purchased brand new, the (in-service date).

Compare your extended auto warranty coverage.

No Extended Warranty for Your Car?

People regularly ask me why some extended warranty companies refuse to offer them a contract on their high performance car. For example it's pretty difficult to find any warranty company foolish enough to offer coverage on certain vehicles built by Land Rover (possible quality issues, frequent and expensive repairs), Jaguar (expensive repairs), Mercedes AMG ($20,000 for an engine) and many turbo engine models like Porsche etc.

If a warranty company turns you down they should be honest about why. Be more concerned with the company that is crazy enough to cover these cars. First of all you can bet they won't cover wear and tear failures and the foremost thing on their minds will be trying to somehow get out paying your repairs.

My best advice for you if you have a high end car which no warranty company will touch, is to create your own claims reserve account and don't be stingy. Then you can be your own extended warranty.

Where is Your Auto Service Contract Honored?

Will you be traveling or perhaps moving to another state? Is the contract honored across the United States and Canada? What are the restrictions or limitations on emergency repairs when you are traveling?

Asking these questions up front can save many headaches when you are on the road. Auto Service Warranty allows you to take your vehicle anywhere in the U.S. and Canada for repairs. There are also no restrictions on emergency repairs and roadside assistance whenever you travel in the U.S. and Canada.

Is Your Extended Waranty Transferable?

Another much overlooked but important perk is the transferability of the contract. Also you will always want to be sure that you can transfer your extended warranty contract to a new owner if you decide to sell the vehicle before the warranty expires.

Not only will prospective buyers feel safer purchasing from you, but they will probably be willing to pay more for the peace of mind a warranty offers. Don't forget to ask about this standard perk. You'll save yourself aggravation and maybe even make a few more dollars when you decide to sell.

Rental Car Reimbursement

Envision this: You take your vehicle into the shop and the mechanic announces that it will take 2 to 3 days to repair. You have work to do... places to go and people to see! You can't be without your car.

Some auto warranties offer a free rental reimbursement service that will pay for a rental car for 4 days if your own vehicle is ever in the shop for more than a day. Don't overlook this perk while shopping for just the right extended warranty.

If your vehicle has a "salvaged title" by all means let the warranty company know. Otherwise you may make a costly investment only to find out that a salvaged title voids your warranty.

REMEMBER to: Always check a used car's VIN# prior to buying and get the accurate status of the vehicle.

Four Simple Ways to Avoid Rejected Warranty Claims

1. First and foremost, always get approval from the warranty company before repairs are done! You'd be surprised how many people are denied re-imbursement for a normally covered claim because they failed to get prior authorization.
   
   
2. Most warranties, if not all, require the owner to follow the manufacturer's maintenance guide for your car or you'll be denied a claim. For example, If your engine dies and it's been over a year since you changed the oil, there is a very good chance that your warranty will not cover the repairs.
   
   
3. If your car overheats, please pull over. Damage caused by continued operation after a failure is not covered. Even a rookie inspector can tell when you kept driving with an overheated engine. Towing it to a repair shop is much cheaper than a rejected $2,000 engine repair and your warranty probably includes a roadside assistance program.
   
   
4. If your vehicle has a "salvaged title", by all means let the warranty company know. Otherwise, you may make a costly investment only to find out that a salvaged title voids the extended warranty. Check any used car's VIN# prior to buying to get the accurate status of the vehicle.

How can I compare extended warranty offers?

Below you will find a warranty comparison chart that will help you to compare “apples to apples” so to speak. Complete one for each company that you are evaluating. Simply answer the questions “Yes” or “No” or fill in the information.

• Is this a full-service warranty company? Yes____ No____
• Is the plan comprehensive? Yes____ No____
• Is the warranty transferable? Yes____ No____
• Does the contract include wear & tear? Yes____ No____
• Are parts & labor paid at 100% ? Yes____ No____
• Can you choose the repair facility? Yes____ No____
• Does the deductible apply to each visit? Yes____ No____
• Are claims paid with a corp. credit card? Yes____ No____
• Are inspections free and/or random? Yes____ No____
• Zero Interest and Zero Fee Financing? Yes____ No____
• Name of Company: ______________
• Effective Date: ___________
• Miles: _____
• Are the miles “add-on” or “total”? __________
• Months: _____
• Deductible: ______
• Price with Deductible: _______
• Price with Zero Deductible: _______

You'll know you have found a good company and a great deal when the first 10 questions are answered "Yes". Then, choose the best fit for you regarding months, mileage and deductible at the lowest price.

Who should not buy an extended warranty?

Extended warranties are a waste of money for lazy owners. Timely vehicle maintenance is a demand of any reputable auto warranty company. So, if little Joe Jr. is heading off to college and you have the slightest suspicion that he might skip an oil change or spend the bucks you send for brake pads on beer, do not waste your money on an extended warranty. It is also important to keep records, so when a claim is filed the maintenance of the vehicle is never an issue.

How are claims paid?

Some warranty companies ask you to pay and wait for reimbursement. Others pay promptly with a corporate credit card. No brainer... right?

Search until you find an extended warranty company that pays all parts and all labor... allows you to go to the repair facility of your choice and pays with a company credit card.

What do I need to know about my warranty?

What about parts... labor and qualified repair facilities?

Many companies will only pay what is known as "reasonable" or "standard" rates for parts and labor. That means that if your mechanic charges $85 per hour and the contract's "reasonable" is listed at $55 per hour, you pay the difference.

Beware of companies that include a cap on parts or labor since those extra dollars will be coming right out of your pocket. Also, choose an extended warranty company that allows you to go to the repair facility of your choice, including the dealership if that’s what you prefer.

What different types of vehicle warranties are available?

There are Powertrain warranties that only cover the engine, transmission and drivetrain. Since the average vehicle contains thousands of parts that are not covered, the Powertrain warranty is not a great value, even though it is often the least expensive.

There are also Breakdown warranties. These only cover breakage, no wear and tear items.

There are also warranties that list everything that is covered and others that list only what is not covered. Whichever you choose, you will want to ask about a wear and tear clause. That means that the warranty will pay for worn parts that need to be replaced. This is superior since not replacing a known worn part is not only dangerous, but will likely result in a more costly repair down the road. A comprehensive auto warranty that includes wear and tear coverage is generally the best choice.

Will my vehicle be inspected?

Some warranty companies inspect every vehicle. Others rarely inspect. The best companies conduct random inspections on 10 -20% of the vehicles they cover at no charge to you. This is good because inspections are expensive and the money saved by conducting fewer is often passed on to you. However, in order to protect themselves from covering a disabled vehicle, your coverage may not take effect for 30 days and/or 1,000 miles or both.

If, for some reason, a wait period does not work for you, do not hesitate to ask what other options are available. Again, good companies will work with you. Look for a warranty company that conducts random inspections and never pay for an inspection unless you are asking the company to waive a waiting period. Even then, ask them to pay for it if your vehicle passes.

Extended warranty comparisons and decisions?

What extended warranty comparisons and decisions should I be prepared to make? First, find out what kind of contract each company is willing to offer you. Generally, you will be comparing time, mileage, deductibles and price. Nevertheless, you need to compare other factors too.

For example, are you being offered "add-on" miles or "total" miles? Often, you will find the high mileage contracts are based on total miles. "Add-on" miles refer to mileage the contract will offer you in addition to your current mileage. Both are acceptable, as long as you are clear on what you are actually paying for.

Let's say that you do not plan to keep the vehicle very long. In that case, ask for a quote with fewer miles and/or less time and be sure to ask if the warranty is transferable since a warranty can be a good selling feature if you decide to sell the vehicle on your own.

What about an extended warranty for a used vehicle?

No problem. Again, the best time to buy is when the mileage and age are at their lowest. However, there is an industry rule of thumb that you should consider prior to purchasing your used vehicle. Any reputable warranty company, that plans to stay in the business, wants your warranty to end before that vehicle has reached 10 years of age and/or about 100,000 miles.

Also, don't forget to discuss the maintenance with the prior owner and ask for the maintenance records. No records? Just be honest about your knowledge of the vehicle's history with the warranty company. The good ones will try to work with you.

Lastly, you cannot make comparisons by just visiting web sites. There are often understandable surcharges makes, models, four wheel drive, turbo engines, 1/2 ton trucks, etc. Therefore, you will need to speak with someone in order to get an official quote.

What are the risks of waiting to purchase my extended warranty?

As the vehicle accrues mileage, the cost of an extended warranty increases.Labor rates are constantly rising. Many parts of the country have seen labor rates increase as much as 20% just in the past few years. Naturally, warranty coverage costs rise as well. As your vehicle ages, more repair data becomes available and many vehicles, especially high-line models, are placed into higher rate classes. However, once you buy coverage, your rate class is guaranteed not to change.

Here’s a final rule of thumb for you to consider. Any reputable warranty company who plans to stay in the business wants your warranty to end when your vehicle has reached 10 years of age and/or 100,000 miles. Not following this basic rule will lead them to bankruptcy. So beware of any company that promises more than common sense can deliver.

Can I finance an extended auto warranty?

The short answer is yes. However, beware of the auto salesman who trys to lure you into buying an extended warranty by rolling the price into the sales price of the vehicle. That may sound like a good idea; but remember that you will be paying 6 to 10% interest for years on that extended warranty. That $1,800 extended warranty, tacked onto an 8% loan for 5 years, will actually cost you $2,644.79. And, that figure doesn’t even included the commission that you will be paying to the salesman, the finance guy and the dealership for acting as the broker!

What is the alternative? Simple. Shop direct and save. Don’t buy into the inflated pricing from a dealership. Take advantage of those internet-based warranty companies “Zero interest – Zero financing plans” with no hidden monthly fees. Some companies will promise you a zero interest-zero financing plan and then turn around and charge you a monthly “handling” fee, which can be up to $20 per month. So, look for the very best deal, which is an extended warranty company that is willing to accept a modest down-payment at 0% interest-financing with no monthly transaction fees.

What is the difference between a broker and a warranty administrator?

...and Why is it important for me to understand the difference before I purchase my warranty?

A warranty administrator is the company responsible for actually paying your auto warranty claims. A broker, on the other hand, is a person who sells you an auto warranty and then “farms” the deal out to an outside administrator. There are lots of brokers, but relatively few actual full-service warranty companies who administer their own programs. Understanding the difference is important to you for several reasons:

1. It is impossible to research the claims handling history of a broker since they do not pay the claims.

2. Brokerage firms often need the services of an outside administrator because their own company does not have the financial assets to back up their claims. You want a company with a claim paying history and the assets to service your vehicle over the entire term of your contract.

3. Common sense tells you that you will receive much better customer service when your contact for claims is the same contact that sold you the coverage. Remember, the average consumer buys many cars during a lifetime and reputable companies depend of happy consumers purchasing repeatedly. They also depend of their customers to refer friends and other family members. Brokers are not worried about you after your contract is signed. You will be someone else’s problem.

So, be careful. The first questions you need to ask a warranty salesperson is “Are you a broker or does your company actually process and pay the claims?” We recommend dealing directly with the administrator, also known as a full-service warranty company, like Auto Service Warranty.

What are the risks of waiting to purchase my extended warranty?

As the vehicle accrues mileage, the cost of an extended warranty increases. In addition, labor rates are constantly rising. Many parts of the country have seen labor rates increase as much as 20% just in the past few years. Naturally, warranty coverage costs rise as well. Lastly, as your vehicle ages, more repair data becomes available and many vehicles (especially high-line models) are placed into higher rate classes. However, once you buy coverage, your rate class is guaranteed for the life of your contract.

Here is a final rule of thumb for you to consider. Any reputable warranty company who plans to stay in the business wants your warranty to end when your vehicle has reached 10 years of age and/or 100,000 miles. Not following this basic rule will lead them to bankruptcy. So beware of any company that promises more than common sense can deliver.

Smart Extended Warranty Deductible Decisions

Extended auto warranty plans frequently offer consumers a wide, and often confusing, range of deductible plans. Beware of companies that offer too many choices. The best plans are usually the simplest.

Remember, warranty costs are based on a few simple principles. The make, age and mileage of your vehicle are the most important. Therefore, watch out for companies offering you multiple deductible options. More than likely, these plans include complicated “frill” options that the salesperson knows you are unlikely to need or use. However, you will be paying for them.

Also, be sure to ask if the deductible applies to each "repair" or each "visit". A per repair deductible means that if your mechanic find three problems during one visit and your deductible is $200, you will be charged $600. That is simply a rip-off.

Choosing the right deductible for you should be a simple mathematic consideration. It is a lot like playing the odds. For example, if it costs $500 to go from a $100 to a $0 deductible, you only save money if the car is repaired less then 5 times. However, if a company is offering you a zero deductible for $200, that means that you will save money if the car is repaired more than twice. That is a much better deal.

When is the best time to purchase an extended warranty?

The smartest consumers know that the very best time to purchase an extended warranty is while your vehicle is still covered by the manufacturer. It’s a lot like life insurance. You wouldn't wait until you're 85 to buy it and then expect a bargain, would you?

Here’s why: Naturally, the cost of a warranty rises as the vehicle ages and accrues mileage. You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage. And, no, you will not be paying for double coverage, this car warranty coverage is simply an extension of that warranty, not double coverage. The manufacturer's warranty has been factored into the price quote.

The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. In other words, you are paying for tomorrow's coverage at today's lower rates.

How can I compare customer service of different warranty companies?

Purchasing an extended warranty is a big ticket item for most people. You want a company that will respond quickly, treat you fairly and pay the claims. Every company out there claims that their customers are number one; but we all know that saying it doesn't necessarily make it so. Below are three tips that will help separate the best companies from the fly-by-nights.

1. The best way to evaluate a company’s commitment to service, is the most direct way. Ask the company for the names of dealerships that they have done business with, (not a local garage or independent) call several, and be very specific. Ask how quickly any claim was resolved by that company and how professional they were in resolving the situation. The service director knows the good and the lousy companies.

2. Another way to evaluate a company’s attitude and sense of fair play is to ask for a copy of the contract prior to signing. You will be surprised at how many companies are unwilling to let you see what you are really purchasing up front.

3. Lastly, beware of companies that try to pressure you to buy with threats of rising costs or huge discounts that are ending tomorrow. Reputable firms do not use these tactics. Reputable companies that intend to remain in the business use actuaries with mountains of statistics to produce their rates and those statistics do not change daily or weekly.

Using these three simple tips should go a long way in helping you to effectively evaluate the companies that you are considering doing business with.

Car Myths and Truths.

Myth: Running the air conditioning can put a lot of stress on your car and can reduce the life of your car.

Truth: Waaayyy back when, that was decidedly true. Today, it doesn’t hurt a thing. Enjoy the cool air.

Myth: Using the parking brake is a bad idea, particularly if the car is hit while parked.

Truth: Using the parking brake is a good idea; it protects the transmission if the car is bumped while in park. Use of the the parking brake keeps the brake cables and related parts from seizing and on some vehicles use of the parking brake is necessary to adjust the rear disc brakes

Myth: Fuel additives should be used as a preventative, or to boost performance.

Truth: To boost performance, No. For preventive maintenance, absolutely. Make sure to follow recommended dosages, more is not better.

Remember without respect to maintenance any part of any vehicle can fail at any time without warning.

Extend Warranty Available for Hybrids?

Over the past few months Auto Service Warranty has received quite a few calls about extended warranty availability for the new Hybrid vehicles. The good news is we now offer the same complete coverage as we have in the past for a standard combustion engine. About 95% of the inquiries evolve into the Hybrid prospective buyer asking about reliability of the Hybrid and how it works. Let’s take this opportunity to give a simple explanation of how Hybrids work.
Hybrid vehicles increase gas mileage by using battery-powered electric motors to augment small, high-efficient gasoline-powered engines. In some situations the electric motors can power the vehicles by themselves. Here is what takes place in a typical driving sequence:

1. STARTING. When the car is first started, the battery alone can power such accessories as the radio, air conditioning, etc. The engine only turns on if the battery needs charging.
2. LOW SPEEDS. At low speeds, the electric motor can power the car on its own.
3. ACCELERATION. During hard acceleration, the gasoline engine and electric motor work together.
4. CRUSING. At highway cruising speeds, the engine alone powers the car, with help from the electric motor if needed.
5. BRAKING. When breaking the electric motor is reversed-instead of the motor turning the wheels, the wheels now turn the motor, which acts like a generator to charge the battery.
6. STOPPED. When idling, the engine and motor are turned off to avoid wasting fuel, while the battery continues to run the accessories.

There you have it. Will the hybrids save you money on fuel? You can be sure it will, well maybe. Typically hybrids cost $2500.to $6000.more than comparable non-hybrid vehicles, the price of fuel will dictate any savings, obviously the longer an individual keeps the vehicle will add savings. The long term auto warranty will help reduce cost for those who keep their vehicles for an extended period.

ALERT! Auto Service Warranty. ALERT!

Approximately 470,000 vehicles or 10% of registered vehicles in Louisiana and Mississippi have been destroyed because of the servere weather and flooding from Hurricane Katrina.
Consumers must be on the look out for flood-damaged vehicles which are sure to pop up all over the country and may not be titled as flood or damaged vehicles. The problem is that only about half the states in the country require a "flood" or "salvage" brand on the title. Some states do not require that flood-damaged vehicles be labeled as "flood" or "salvage" when they are resold in another state.
Here are a few tips if you are considering purchasing a used vehicle.

1. Check the vehicles's title history. It may state if it has sustained flood damage.
2. Examine the interior and engine for evidence of water or grit from submersion.
3. Check for recently shampooed carpeting.
4. Check under the floorboard carpet for water residue or stain marks from evaporated water.
5. Check under the dashboard for dried mud and residue, note any evidence of mold or a musty odor in the upholstery, carpet or trunk.
6. Inspect the undercarriage of other components for evidence of rust and flaking metal not normally associated with late model vehicles.

These simple tips can save you from having problems down the road.

Your Cheapest Defense Against Major Auto Repair Bills.

Oil Change? I'm to busy.
Changing oil on a regular basis is important to help keep your vehicle running at top efficiency,not to mention that frequent oil changes can prevent many MAJOR breakdowns, that is the reason Warranty Companies are so insistent on regular maintenance. If your maintenance is not done you risk your repairs being denied.That being said lets examine who and where we should have this service done. All of us love a bargain but in this case the bargain may wind up costing a lot more.
Oil Change? I'll do it next week.
It seems that on almost every vacant corner lube/oil shops are popping up, their only function is to change your oil fast, no appointment required, and best of all CHEAP. Here is how they do it, the quality of oil used (it may have a well known brand name, but that company makes several qualities of oil under their label), it is not what you find off the shelf in most repair shops.
Oil Change? A few more miles won't matter.
The filters that they sell as replacements are again not top quality, and always come from a third-world country, (where they are made is not the concern but the quality is). Finally the employees generally have no mechanical or tech. training and if there is a problem or potential problem they won't find it. All that being said, our advice is take your vehicle to a certified repair facility, it may cost abit more but in the long run it will be worth it.
What's that clicking sound coming from my engine? Oil Change anyone?

Extended Warranty Company Customer Service Rating

Here is a way to see how the Warranty Companies treat their customers and pay claims. Ask the Auto Warranty Company you are considering, for the names of dealerships they have done business with,(not a local garage or independent) call several, and be very specific,ask how quickly any claim was resolved by that company, and how professional they were in resolving the situation. The service director knows the good and the lousy companies.

BUMPER TO BUMPER COVERAGE ON YOUR EXTENDED WARRANTY ?

Can you get "Bumper To Bumper" extended warranty coverage on used vehicle? Simply stated the answer is, "No"! True bumper to bumper coverage is only available from the manufacture and only on new vehicles. In fact, many auto manufacturers actually reduce the coverage for some vehicles in the last year of factory warranty. Bumper to bumper coverage, among car makers, may include slight variations; but, for the most part, they are identical. Coverage includes all the cosmetic items (seat fabric, carpeting, body moldings, paint, etc...). Basically, any item on that vehicle will be covered with the car manufacturer's "Bumper To Bumper" coverage. It now seems many Extended Warranty Companies are advertising their coverage as "Bumper To Bumper". That being said, should we not look a little more closely at these Companies who are misrepresenting what they sell?

PROTECT YOUR VEHICLE!

An Extended Warranty will give us "peace of mind" for those expensive repairs, but with summer trips just around the corner what else should be done before packing up the car for our trip?
Check tire pressure and look for signs of uneven wear or embedded objects that can cause air leaks. Always check tire pressure whenever there is a sharp change in temperature.
Check around the car and under the engine for fluid leaks. You can often identify the type of fluid that is leaking by it's color. Oil is black, coolant is bright greenish yellow, automatic transmission fluid is pink, and power steering and brake fluid is clear, with a slight brown tinge. All of these fluids are oily to the touch.
Check fluid levels, including engine oil, engine coolant level, transmission fluid and power steering fluid, according to the instructions in the owners manual.
Check under the hood for cracked or split spark plug wires, cracked radiator hoses or loose clamps and corrosion around the battery terminals.
Check for problems with the brakes. On a straight, flat and traffic-free stretch of road, rest your hands lightly on the steering wheel and apply the brakes gradually. If the vehicle swerves to one side, one of the brake linings may be worn more than the other, or the brakes may need adjustment.
Use a similar test to check for problems with wheel alignment. On a straight, flat and traffic-free stretch of road, rest your hands lightly on the steering wheel and drive at an even speed. If the vehicle pulls to one side, the wheels may be misaligned.
Have a safe, and trouble free summer!

Picking the RIGHT Warranty Company

How can we decide which extended Warranty Company is going to best serve our needs, no simple answer to this question! Price, coverage, stability those are all of the obvious wants by the average consumer, but lets dig a little deeper. The person on the phone we are going to talk to is a SALESMAN, and how the initial call goes, can tell us quite a bit about the company we are considering doing business with, remember the phone person is trained by that company and is always a good reflection of that companies attitude toward its customers, (That is ,unless your talking to a broker and he/she could care less, because after they sell you a vehicle warranty you are turned over to another company to handle any claims, questions, or complaints...not the best of situations). Let's go back to the phone person. The biggest BEWARE is if they will not have any dialog until you give up, first and last name, city, state, address, zip code, phone numbers, e-mail address, hey, what's going on here they didn't ask what kind of car, truck, or van, I have...Just remember, the first impression is a good indicator! One other little tid-bit here are some phrases that SHOULD make you look elsewhere. "Buy today the price is going up.""If you don't buy today your vehicle may not qualify.""We have a SPECIAL going on ";(If you monitor a site like this you will find the special is perpetual.) Last, but not least, those companies who spend all their efforts knocking others in the industry rather than answering your questions. Good Shopping!

Should I Purchase an Extended Warranty?

There is no universal Yes or No answer to that question you have to evaluate this decision on your own. Let's look at a couple of different situations, first a vehicle that has factory coverage. Most manufactures will cover (complete coverage) a vehicle for 36 months or 36,000 miles. So why buy an extended warranty while my vehicle is covered? If you plan on keeping your car, van, truck past the factory time or mileage coverage, this is the m0st economical time to buy an extended warranty. There is nothing the warrranty companies like better than to know that they won't be shelling out dollars on claims while the factory warranty is in effect, and in most cases this will be reflected in the price quote for your extended warranty. The time to buy in order to get the best deal is when you still have factory coverage with the manufacture, and the best price, will be if you purchase directly from a warranty company eliminating the middle-man.

The Actual Price of an Extended Warranty.

Auto sales people will try to lure you into buying their extended vehicle warranty by rolling the price into the sales price of the vehicle. That may sound good, but remember that you'll be paying 6-10% interest for years on that extended warranty. That $1800 extended vehicle warranty tacked onto an 8% loan for 5 years will cost $2644.79 . What is the alternative? Shop direct and save the inflated pricing from the auto dealer, and take advantage of those Extended Warranty Companies Zero% interest plans.

What Your Extended Warranty Does Not Cover!

All extended warranties are not "created equal", some cover more than others, but let's talk about that at a later time. One thing common among all extended warranty providers is you (the warranty holder) MUST maintain your vehicle or your coverage WILL be denied.
Vehicle extended warranty contracts require you to maintain your vehicle as per the manufacturer's instructions (found in the owners manual), items generally included using only approved parts, oil changes, fluids, etc...It's important to do the required maintenance but just as important keeping good records, so when a claim is filed maintenance of the vehicle is never an issue.

Extended Warranty Companies.

You have decided to buy an extended warranty for your Car, Van , Truck or S.U.V... You have been to the Dealer and he wants your "first born" (a lot of money) for his extended warranty protection. The next step is to head to the internet to search out information, and a better deal if possible.

Beyond all the obvious digging one should do to find the "right" company, there are some glaring similarities of several vehicle warranty providers. Primarily it's that 60% off, (of what) they want you to believe their pricing for identical coverage is 60% less than the competition," spare me PLEASE ", lets do the math, but before we do, request a quote from at least four companies (not offering prices 60% less), get an average price of the four and take 60% off. See what I mean, It's your choice, whom you purchase from....

BUYING AN EXTENDED WARRANTY?

If you’re thinking of purchasing an extended vehicle warranty, a couple of “for sures”, first make sure that the company who sells the warranty is the same company that is going to handle your claim. That’s always a good sign that the repair will be done in a timely fashion. What is more frustrating than having a vehicle in for repairs that take days to resolve.

Another area that is generally overlooked until the time of reckoning is upon us is a “labor repair standard rate” or a line in the contract that states “reasonable labor cost, for repairs” another watch-out for is a contract that states “labor cost is determined by the company and or administrator. Here is what all that mumble-jumble boils down to. If the repair facility has a labor rate of $90.00 and the warranty companies labor rate is $65.00. Guess who would pay the difference. You got it!