Should you buy an extended warranty?

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  • Dealers may try to sell you a extended warranty (also known as an auto service contract) when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract or extended warranty is sold separately and is a promise to pay for certain repairs or services. Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. If you want to get the additional coverage you can always negotiate the price of the extended warranty www.adviceontime.com is a good source of info. The service contract may duplicate warranty coverage you get from the manufacturer or dealer. Ask these questions: Does the dealer, the manufacturer, or an independent company back the service contract? What happens to your coverage if the dealer or administrator goes out of business? How are claims handled? Can you choose among several service dealers or repair centers or do you have to return to one dealer? Is your car covered if it breaks down on a trip or if you move out of town? Do you need prior authorization for repair work? Common repairs for parts like brakes and clutches generally are not included in service contracts. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made. Failure to keep up manufacturer's recommendations for routine maintenance can void the service contract. The contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself.
  • You must ask yourself how long do you keep your cars. If your history shows that you keep a car on average 3-4 years then you are fine under the Factory Warranty. You may purchase the Extended Service Plan any time up to the end Of the Factory warranty, but you must pay cash at that time. If you want to "Finance" at possibly lower rates you must do so at Time of purchase.Factory Warrantys(Ford, Chevy etc) are more $ than "After Market" but will cover you Nationally.
  • If you are buying a new car and only going to keep it for 3 years then no. But most people buy used then i say YES. Answer this question would you rather pay $1500 out of your pocket for 1 repair or a couple bucks every month and not have to. Plus the work being done is by a mechanic that only works on those type of cars so it will more then likely done right. Also how many times have you brought your car somewhere and they found things wrong and you said ill do it later so then you drive around with a annoying problem which then leads to another problem. When you could've got it done for free. Also most dealerships will give you a loaner car to drive while your car is being fixed!
  • I was an underwriter for an extended warranty company for two years, and I would suggest never buying one. The car dealers who sold them left out valuable information and gave out lots of misinformation when selling them to customers. Nine out of ten times, customers were calling to have them cancelled because they did not do what they were told they would do. They were 5 or 6 different types of warranties that fit depending on what type of vehicle you were buying, was it new or used and what the mileage is on the vehicle. The newer the vehicle the more money the dealer is going to get out of it, so regardless they sold the "new" one and when the customer went to use it they would find that there was not coverage for what they needed repaired. If you take the amount of money you are paying into your payment every month that is for the warranty and put it into your savings account you would have the money set aside when something does happen, then you don't have to go through the hassle of waiting while the warranty company decides if it is covered while your vehicle sits in a shop waiting to be repared.
  • I've been in the car business for 19 years. First as a mechanic, then in new and used car sales, and now for the last five years as a Fiance Manager in a new and used car dealership. If you KNOW that you will not keep the car past the factory warranty, then don't buy the extended warranty. However, if you drive higher mileage, keep a car longer than the factory warranty, or if you're buying a used car, then an extended warranty is probably for you. Since most Americans live paycheck to paycheck, the idea of putting money away for mechanical breakdowns is unrealistic. I deal specifically with people's credit and I see a lot of problem areas due to uncovered, and unaffordable mechanical breakdowns that could have been avoided with the purchase of an extended warranty. Make certain the warranty company you choose is nationally known and usually insured by an even larger mother company.
  • Not all warranties, but definitely GAP insurance.
  • If you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months !!!!!
  • For a car... if and only if you know nothing about cars and have a lot of money. In general an extended warranty is nothing but pure profit for just about any business. This is the reason employees make so much commission from selling extended warranties.
  • It's best to buy an extended warranty.
 ALTERNATIVE POV
Agree with the above for the most part, but disagree that it's a bad idea to buy an extended warranty. I did extensive research on warranties and found that most people who experienced a repair during their coverage were very glad that they had an extended warranty, and recommended to others that they purchase one. Those who did not experience a repair did not. About 80% of extended warranty buyers experience a repair during their coverage. So ... you have an 80% chance of being glad that you had one. Convinced me. Having said that, it does make sense to find out whether the company providing your coverage is legitimate and secure ... one of the best ways to do that is to ask about third-party certification and awards, from companies like BBB, or category specialists like Motor Trend or J D Power.

FURTHER CONSIDERATIONS

Keep in mind that extended warranties are also routinely offered during the sale, or shortly after the sale of consumer goods other than automobiles. Many of the same considerations disccssed regarding auto extended warranties apply to warranties on consumer goods. Perhaps the biggest difference is that many of the vendors of consumer product extended warranties are separate companies than the manufacturer of the item. so it is very important to know who or what you are dealing with (that is, a company such as Ford Motor Company will not be standing behind the extended warranty on your refrigerator).

Understand that an extended warranty is essentially an insurance product, in the sense that the consumer is paying a premium at present for the promise of performance at a later time. Most states license and regulate legitimate extended warranty companies, including to ensure that they maintain sufficient levels of capital to sustain operations and to pay anticipated claims.

An extended warranty may be sold under a product name (for example, "Best Forever") but what is important is the identity of the entity that is financially responsible for the payment of warranty claims; it is that entity that has to be licensed. If an extended warranty is offered at the time that the product is sold, the store salesperson may not know all of these particulars. Do not be pushed into buying the warranty at that moment, as you will doubtless have the chance later to get one if you desire it. In the meantime, do the necessary homework, including contacting the state insurance regulator to make sure that the warranty provider is licensed, the number and nature of the consumer complaints that may have been filed against it, and how they have been resolved.
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If an American car has a 3 year 36K mile factory warranty is it worth it to buy a 5 year 72k extended warranty?

Answer . READ THE FINE PRINT. Do EVERY required maintenence required or else your claim will be rejected.. Also if you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months !!!!!. It all depends on what American car you are talking about. ( Full Answer )

Should I buy an extended warrenty for a 2003 Passat?

Answer . That is a difficult question. If you dont and something expensive happens then you will wish you had. I bought a 3 year old blazer and purchased the warranty, when it came time to renew the warranty and the truck still had no problems I was reluctant but my wife talked me into it, 3 mon ( Full Answer )

Should you purchase an extended warranty on computers?

Answer . \n (the following is the submitter's personal experience and recommendation) \n. \nFor Apple computers, my personal rule of thumb has always been:\n. \nIf the computer meets any of the following criteria...\n . has a built-in LCD\n . is a portable computer\n . is not designed to be ( Full Answer )

Can you cancel an extended warranty?

Answer . If it is with a reputable company - may have to pay a service charge or prorate the time it was in force.

When does an extended warranty start on an auto?

You will need to read your contract, some start immediately and some have a 30 day waiting period. Also some contracts begin immediately and overlap factory warranties so you pay for double coverage and is not the best option or others start when the factory warranty expires.. Vehicle Life Genuine ( Full Answer )

Should you buy a warranty on a used car?

Yes, BUT READ THE FINE PRINT. Do EVERY required maintenence required or else your claim will be rejected.. Also if you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months !!!!!. OMG YES WARRANTYS ARE SO WORTH IT I BOUGHT A USED MONTE CARLO ( Full Answer )

Should you buy an Extended warranty on laptops?

Yes you should, laptops are very sensitive and could break down out of nearly nothing. My laptops hard drive broke down from having dust in the fan. If i would of bought the extended warranty then i could of replaced my old laptop with a free new one, but no. Now i have to buy a whole new laptop!!

Should you buy a warranty for a used car?

Most occasions, I must recommend any used car owner to purchase an extended warranty. Even if your vehicle is ten or more years older but has low mileage, investing in an extended warranty would be much cheaper than if it were older an vehicle and had high mileage. Before signing the contract, you s ( Full Answer )

What is extended warranty?

In regard to a motor vehicle. All vehicles come equipped with a standard factory warranty. However, these often are limited by time and mileage. An vehicle protection plan is often times referred to as an extended auto warranty by a consumer, in which affords the consumer the ability to extend co ( Full Answer )

Which are the best extended warranty companies?

Ultimately, for me, it's about the trust factor. If you can trust that they'll be around the entire term of your policy, and if you can trust that if you have a legitimate claim that it'll be covered, then you're probably good. In those cases, look for companies that have been around for a while, ha ( Full Answer )

Are extended home warranties good?

Extended warranties are often sold separately from manufacturer warranties to offer longer protection from covering repair costs. Standard warranties are usually good for a year, while extended warranties can last two or three years. Purchasing an extended warranty comes with additional costs, so it ( Full Answer )

Advantages and disadvantages of extended warranty?

An extended warranty will extend the coverage for repairs of covered components of your vehicle, subject to the stated deductible. This can help offset the costs of repairs of covered items. You need to assess how much is charged for the extended warranty, how much the deductible is, how long and up ( Full Answer )

How do you know if a extended warranty is a scam?

No warranty is a scam on the face of it, that would be illegal, but extended warranties are very profitable items for car dealers. You will have to read the warranty carefully to see what is actally covered, and ask some questions. Check up on the reputation of the dealer you are buying from, if the ( Full Answer )

Should you buy a digital camera warranty?

I personally think Canon PowerShot SD1300IS is best because its very easy to use,and has all the features of a better camera for less the pirce, its only like 141 $

Can you get an extended warranty on a 2006 model?

I've never had success convincing a dealer to quote me on a warranty AFTER I've bought the car, but if you're from Canada, I've just learned that there's an outfit that's selling extended vehicle warranty's (apparently comparable to factory warranties) at insurance brokerages. It's called High Road ( Full Answer )

Why shouldn't you buy an extended warranty?

You should't buy an extended auto warranty , if: . Your financially disciplined to set aside an emergency car repair savings fund each and ever month. . Your vehicle is older than 10 years or 100,000 miles. . The extended warranty does not cover mechanical breakdown due to normal "wear and tea ( Full Answer )

Should you purchase an extended warranty on a freezer?

If the peace of mind is worth it to you, go ahead and get it. However, very few extended warranties are worth the expense. With an object like a freezer, if it's going to be problematic, it will - 99.9 percent of the time - show up in the first thirty days, when you are automatically covered by warr ( Full Answer )

How do you purchase an extended car warranty?

If the warranty that come with your car isn't satisfactory you can purchase n extended warranty. An extended car warranty is bought usually from an insurance company. There re some companies that specialize in these types of warranties.

How long is the Toyota extended warranty?

"You can purchase a Toyota extended warranty for up to 8 years, or 125,000 miles. The price depends on the length of the warranty, and how soon after your initial purchase you decide to buy the warranty."

Where can one get an extended car warranty?

You could purchase an extended warranty on your vehicle by the company that manufactures your car. You should be able to find a number for that company inside your car guide.

Should the cost of an extended warranty purchased be capitalized with the original cost of the asset?

According to International Financial Reporting Standards (IFRS): "The cost of an item of property, plant and equipment comprises: (a) its purchase price... after deducting trade discounts and rebates (b) any costs directly attributable to bringing the asst to the location and condition necess ( Full Answer )

How much does auto extended warranty usually cost to buy?

For those considering making the purchase of a new automobile, the extended warranty is a prime consideration. It usually costs approximately, 10-15% of the purchase price of the automobile to buy.

How does an extended warranty auto work?

Extender warrantys for cars are extender service contracts that pay for the cars repair expenses and other expenditures that a car demands after the manufacturers warranty has expired.

Why do cars have an extended warranty?

A normal car warranty will only cover basic maintenance of the car. Usually just replacement parts and other damage caused by general wear and tear. An Extended Warranty covers other causes of damage, known as third party damage. This includes instances such as Fire, Water and theft.

Where could one buy extended warranties for electronics?

Extended warranties on electronic products and electronic accessories can be purchased from the retail outlet at the time of the item's sale. Often these extended warranties will cover extra things such as accidental water damage or from the item being accidentally dropped.

How can one get extended car warranties?

When purchasing a vehicle from a dealership, one should speak with his or her salesperson about purchasing an extended warranty on the car being purchased. One may also purchase the extended warranty on a car up to 31 days after purchase.

What does it mean to have vehicle extended warranty?

An extended vehicle warranty covers your vehicle beyond the normal manufacturer's warranty, which may be only two years or 5,000 miles. It normally covers the same things that the manufacturer's warranty covers and not normal maintenance like oil change or tires.

How can one get Honda extended warranty?

If a Honda owner visits the Honda website and searches around, they may find a link that directs them to a page that provides users with an extended warranty.

What extended warranty does Best Buy offer with a Canon d30 camera?

Best Buy offers "Geek Squad Protection" plans on their range of digital cameras. These plans cover failure due to manufacturing faults that appear after the manufacturer's warranty ends, plus normal wear and tear. 'Advanced' plans also cover accidental damage. They are offered as 1, 2 and 3 year pla ( Full Answer )

Why should a driver buy an extended car warranty?

A driver should consider buying an extended car warranty to keep their car under the warranty for a longer period of time. An extended warranty means that there is a longer window for the vehicle to be covered for free repairs or replacements if it has problems.

What are the limitations for Chrysler extended warranties?

It just varies, from date of purchase and sometimes they change them up yearly. Your best bet is to consult a customer service representative. Or try to do the research on your own. Sometimes there are too many loop holes to make sense of them though.

What does a Chevy extended warranty provide?

A Chevy extended warranty allows you to get free vehicle repair from thousands of GM dealerships in the United States of America and Canada. You can get more information about this service online at the Extended Chevrolet Warranty website.

What are the features of Chevrolet's extended warranty?

The notable features on Chevrolet's extended warranty is that they pay for parts of the car. It is advisable to get it especially if you are thinking of owning your car for a longer period of time.

Should you purchase extended subaru outback warranty?

I will say this, the extended warranty that you can get on anOutback is very nice and has one trait that separates it from mostextended warranties on the market, it's in house. Most extendedwarranties are through 3rd party organizations that have a host ofproblems that make it best to avoid. Subaru' ( Full Answer )

Should i buy an extended warranty on tires?

No. Different economists, including Harvard economist believe thatextended warranty of tires is usually waste of money. This isbecause pro-rated warranty that comes from the manufacturer isenough to cater for the possible risks involved.