Manufacturer Extended Warranty
UNDERSTANDING EXTENDED WARRANTIES:
THERE ARE 3 TYPES:
VEHICLE MANUFACTURER BACKED
INSURANCE COMPANY BACKED
INDIVIDUAL DEALERSHIP BACKED
In my opinion, the only warranty worth buying is backed up by the Vehicle Manufacturer. Most Manufacturer Extended Warranties (aka Extended Service Contracts) cover the vehicle bumper-to-bumper less wear items. The Vehicle Manufacturers Extended Warranty is valid at every New Car Dealership of the SAME MAKE in all 50 States and you never have to lay out any of your own money. Plans vary from Manufacturer to Manufacturer. Some Manufacturers only have ONE LEVEL of COVERAGE with DIFFERENT LENGTHS of TIME & MILEAGE VARIATIONS to tailor the plan to your specific driving habits. This REDUCES the cost of the warranty, a Lower Mileage & Longer Term Warranty is LESS EXPENSE than a Higher Mileage & Shorter Term Warranty. Example: a 6 year or 36,000 mile warranty is much CHEAPER than a 3 year 75,000 mile warranty for obvious reasons. The likelihood of a mechanical breakdown is much higher between 36,001 – 75,000 miles and 3 years than it is for staying under 36,000 miles with a 6 year term.
MANUFACTURER WARRANTIES WITH DIFFERENT LEVELS OF COVERAGE
When different levels of coverage are offered by the Vehicle Manufacturers, there are some Business Managers (not all) who will EXPLAIN (SELL) the top level Verbally BUT they will CHECK OFF the NEXT LOWER LEVEL of COVERAGE on the CONTRACT! This is THEFT by DECEPTION and is all too common place in a car dealership. You MUST be diligent and pay attention to everything you are signing! Do NOT trust the business manager! See: BLOG “I thought I’d seen it all” for more THEFT by DECEPTION
DIFFERENT LEVELS OF COVERAGE INCLUDE BUT NOT LIMITED TO:
- POWERTRAIN CARE
- BASE CARE
- EXTRA CARE
- PREMIUM CARE
Pay close attention to the explanation of each level and ask to see a chart. You must SEE the correct level of coverage CHECKED OFF on the Warranty Contract itself, to be sure you are getting what you are paying for. Otherwise, you will be disappointed when your claim is denied.
Most warranties are sold by the finance manager or sometimes a warranty girl will come to the desk just after you sign the deal and will make a pitch for you to purchase an extended warranty, but she/he will tell you that you must buy it now to qualify for this price. Not true, just sales hype…
BUYER BEWARE! Extended Warranties are one of the Most Overcharged Products Sold at every dealership. If you do not know EXACTLY what you are buying, you will overpay every time!