Questions to Ask before you Buy an Extended Warranty

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Questions to Ask Before you Buy an Extended Warranty

If your auto factory warranty is about to expire, you may be thinking about getting an extended warranty. We all fear what would happen if our car's motor or transmission were to go south, leaving us with major repair bills. Is an extended warranty or "service contract" right for you? Such a vehicle service contract can cover your repair costs for mechanical breakdowns. Let's find out with these six questions to ask before you get an extended car warranty.
 
Do you have four or five thousand dollars socked away for a rainy day should your car break down? If so, an extended warranty plan may not be a big priority for you. Likewise, if you seldom use your car, you're at less risk of having a breakdown that someone who uses their vehicle heavily every day. If, on the other hand, the idea of sudden major mechanical failures causes your stomach to knot up, you may prefer the peace of mind found in having an extended auto warranty.
When shopping for an extended auto warranty, be sure to read the entire coverage contract so you understand what exactly is covered by the extended warranty as well as what is not covered. Compare the specific details of the plans you are considering so you can find the one that best suits your needs. These plans generally cover your vehicle from two to seven years, depending on the contract. How long are you intending to keep your car? Take that into consideration for the length of coverage.
Some extended warranty plans are transferable to a new owner, while others are not. Transferable warranties can be a good thing because they increase the value of your used car when you sell it. There is usually a small fee to transfer the warranty that will cost you around fifty dollars. It's worth asking your provider about.
 
A number of auto warranty businesses have turned out to be scams, taking your money and giving nothing in return when you need them. To avoid being taken, consult the Better Business Bureau to find providers that have been in business for a long time and who have an excellent rating with customers.
Read all the fine print thoroughly when you choose an extended auto warranty. You may be pleased to find a number of perks you didn't expect. These can include a free rental car while your car is being repaired, and trip interruption reimbursement. Some include 24-hour roadside assistance that comes in mighty handy when you and your vehicle are stranded.
 
One last thing to consider is, "Who services the contract?" Many auto dealerships offer extended warranties from third-party companies. Keep in mind that it is best to have a service contract that is backed by a major automaker, rather than a private company. For one thing, you have the peace of mind that the warranty is backed by the vehicle manufacturer, and you can get your car serviced and maintained at any dealership of that brand in the country. A third-party contract might only be good at the dealership that sold it to you.
Let Lithia Help!
We have been helping people with all their personal transportation needs for over 75 years and have over 260 auto dealerships from coast-to-coast. If your vehicle's warranty is close to expiring, give your local Lithia dealer a call. If an extended auto warranty is in your future, we can get you into a plan that's right for your needs.