Yes I’m a mechanic, but I wish I had a car warranty at times. I bought a used C5 1999 Corvette for a great price and I checked it myself. About 3,000 miles later the transmission had a major internal failure that damaged the case.
It couldn’t be fixed and I had to buy a whole new transmission. This failure would have been covered under some extended warranties. The cost of the transmission was about double of what a warranty would cost me.
Switching out the transmission in my driveway was even more painful then the cost of parts. Here’s a car buying tip. If purchasing from a dealer whether it’s a new or used car dealer they will offer an extended car warranty.
In fact, It’s such an important profit center to the dealer that they might even try to hide it in the paper work. Look into this a little further and read the fine print.
I prefer factory backed coverage like GMPP (General Motors Protection Plan), but they are also the most expensive kind of plans. As a mechanic I’ve dealt with several aftermarket and factory backed extended warranties.
I have also seen transactions from the mechanical and service management side of the equation. In the end, I found very little difference in coverage or service in my opinion. So consider saving some money and securing your own coverage from an outside vendor.
When the dealer presents you with prices for extended warranties remember thanks to the power of the Internet you do have options.
Also note the dealer may hard sell their in house coverage due to large profit margins, spiffs and bonuses. You can shop for coverage online just like you would for any kind of insurance. Use a website that is based on the power of the quote. The power of the quote forces the vendor to bring their best offer.
Eligibility for Car Repair Coverage
This coverage is not just for new car buyers. A full car warranty can be added to the vehicle you are driving right now. Keep in mind there are limits to current mileage and when you can submit the first claim. This is to avoid people seeking coverage for preexisting coverage.
Also consider picking a car warranty that will let you use the repair facility of your choice and pays your claim quickly and efficiently over the phone via their corporate credit card.
Notify the auto repair facility to contact the claims department and they take care of the bill. You pay your deductible (if any). No paperwork, no need to lay out any cash, and make sure there is no limit to the amount of claims you can have.
Look into any complaints registered about the performance or service of the company. Research and investigate the provider thoroughly with internet searches.
Research the benefits offered including, 24/7 roadside assistance, free rental and trip interruption expenses, and road hazard protection on the tires for the life of the cars warranty.
Watch out for exclusions of seals and gaskets coverage, wear and tear coverage, and be sure toll-free nationwide service and support is available. You can add and subtract options and compare prices until you have the custom plan you want.
Transferable Extended Warranties
Another car buying tip for you, is to think about the future and get a warranty that is fully transferable. This gives you an extra feature that few other car sellers can offer. And it might push you ahead of other sellers.
This can now extend a worry free purchase to your potential buyer. In turn you will be able to ask for top dollar maybe even full retail like a car dealership when you go to sell your vehicle.
This also increases buyer confidence in the car for sale because vehicles that have up to date protection are much less likely to have hidden or even major problems. The goal of buying a warranty is to get the most competitive price and coverage on the parts that you might need fixed.
The cheaper the warranty the fewer covered repairs. Use the extended warranties quote form to find not just great pricing but real coverage backed by solid companies that know the auto industry.
Note that most providers will let you cancel contracts within the first 30 or 60 days for a full refund. After that most will provide a pro-rated refund for the unused portion of the contract. So there is very little risk.
Auto Warranty Buyers Tip
Here is a feature I have never heard of before. You can also look for a 100% money back guarantee that insures you will receive a full refund at the end of your contract.
How? When the contract matures and you haven’t made any claims you get 100% of the purchase price back. The warranty company doesn’t walk away empty handed. They earned interest or invested the funds before refunding the premium total.
Money back Guarantee programs are not available in all states. I heard the aftermarket automobile warranty was started by a group of consumers like us, who were tired of dealerships hiding ridiculous price mark-ups in higher monthly car payments.
People are starting to buy more cars over the internet. Learn more on the subject and the challenges associated with Internet car buying. This next link takes you from car warranty to more online buying tips. Learn more about the car mechanic that created this car portal website on the homepage.
You will also find a lot more automotive information. This next page focuses on how to make money buying and selling cars but it also includes an important link to obtain blue book values on any car or truck for free. Visit my page about used car book values.
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