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Advice for Purchasing an Extended
Service Warranty
1. Before you begin looking at extended warranty service
contracts, you should use your own experience as a resource. Make a list
of what you believe are the 5 most important features in any warranty
or extended warranty. Then, begin looking at direct market companies who
can offer you a warranty with no middleman such as WarrantyWarehouse.com
The secret of saving money on an extended service warranty contract is
to avoid auto dealers and companies that act as a third party in the purchase.
2. Find a company that understands the concept of “solution
service” which means a company that can and will solve your service
and repair problems with no hassle. Quick and efficient solutions are
the long-term components of business. In other words, find a company that
offers premier service and can hold on to you as a customer for life.
3. Don’t forget the importance of your automobile’s
regular maintenance. An extended warranty does not cover regular maintenance
such as tire rotation and regular oil changes. Long-term ownership (5
years or more) does demand regular maintenance of the vehicle. Owning
an extended service warranty contract does not mean you don’t have
to regularly maintain your vehicle.
4. An extended service warranty contract will be less
expensive if you purchase it while your automobile is still under comprehensive
manufacturer warranty. However, purchasing an extended warranty from the
dealer will cost you more than if you purchase a contract directly from
a company such as WarrantyWarehouse. You can speak to your warranty service
contract specialist about the date your contract will come into effect.
5. Only buy a policy that can be transferred to your
automobile’s new owner should you decide to sell you vehicle. Not
only is this cost-effective, but it is an important aspect to the sale
of any used vehicle. As a buyer, wouldn't you rather buy a used car that
has a warranty?
6. Don’t wait until your automobile is “making
a strange noise” or “not switching gears appropriately”
before you look into purchasing an extended service warranty. Most warranties
don’t cover pre-existing problems or previously required repairs.
Think ahead.
7. Read everything. Like a reporter, concentrate on the
who, what, when, where, why, and how. Always review the complete contract
so that you’ll have no surprises. You may have a few exclusions
in your contract. However, that isn’t the problem; problems will
arise when you have exclusion you are not aware of. Demand a complete
contract and read it before you sign.
8. You should never pay for your service up-front. Your
extended service warranty contractor should pay the repair facility directly.
Remember, the facility should have an authorization prior to your personal
authorization for repair to your vehicle. Be an educated consumer. You’ve
paid for your extended service warranty contract. Don’t pay for
your service as well.
9. Review your contract and speak with your warranty
contract specialist so that you can create a specific list of certified
repair facilities that honor your contract. Knowledge is power so know
what is covered and where you can take your vehicle for service. You will
be happy with your contract if you know your coverage.
10. Remember, even if you plan to sell your car, regular
maintenance and a warranty are extremely important issues for consumers
who want to own their vehicles for longer periods of time or who may want
to sell their vehicles in the future. The service history and the extended
warranty may be the most important selling point for any used car.
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