Auto Extended Warranty Plans – Are They Worth It?
Whether you buy a new or used car, you usually get some form of warranty. A new car typically come with a three year or 36,000 mile warranty; a used car probably comes with a three or six month warranty; depending the age.
The warranty offered by a manufacturer on a new car is an indication of how confident they are that you will have trouble-free driving during the warranty period. There are a couple of car companies that now offer warranties of five years or more which really does show confidence in the product. None of the aforementioned types of warranties need to be paid for; they are already included in the package. They generally cover major parts, but they do not cover items that are subject to usual wear and tear during driving, such as tires.
Warranties offered on new cars are generally very good and you can be certain that in the event of your car developing a problem, the matter will be dealt with quickly and efficiently; in many cases you will get a replacement car while the car is repaired. Additionally, you will usually find the warranty documents easy to understand and because the warranty covers so many items you will find that only the exclusions are listed.
However, extended warranty plans or vehicle service contracts, as they are often referred to need a lot more consideration. On face value they offer to cover your car after the car manufacturers warranty has expired, providing you peace of mind in the event of problems occurring.
You need to undertake research before choosing an extended warranty. Always choose a company that has been in the extended warranty business for many years. Remember, is not really any different than other insurance contracts you enter into; except that the likelihood of them getting a claim is higher than a regular insurance company.
Check out their claims handling procedures. Always get testimonials from satisfied customers. Make sure that you are not too limited as to where repairs can take place. It is usual for warranty companies to specify certain places where you can get you car repaired; they don’t want you doing a deal with you garage friend down the road for example.
Importantly, make sure that you are not liable for having to pay for the repair up front and then get reimbursed by the warranty company later. You have no idea how much it may cost; and you may not have the money. Additionally, you don’t know how long it will take for the company to reimburse you; or even if they will.
Check that the warranty covers parts and labor costs. Some warranties pay for the parts, but not the labor and you can be sure that the labor costs will far exceed the cost of the part.
Lastly, read the warranty document before you sign. Check all the small print, read the exclusions. Extended warranties can be expensive, so make sure you shop around and get the best deal, but always remember, you tend to get what you pay for, so a cheap warranty may mean you are not properly covered.
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For more information about engines and other used auto parts, check out http://www.woodfins.com. And you can visit their website for their selection of used engines.
Author Bio: For more information about engines and other used auto parts, check out Woodfins.com. And you can click here for their selection of used engines.
Category: Automotive
Keywords: auto, cars, auto parts, car parts,