Deciding whether or not auto warranties are warranted after the purchase of a new or used vehicle requires some careful consideration and a great deal of luck. Cars are not predictable enterprises, and are, in fact, really, mind-reelingly expensive to fix if something goes awry. For these reasons, the majority of consumers routinely opt for an extended auto warranty directly after purchase; but how do you decide if a warranty is warranted?
The first step is researching your car. Shoals of information sail across cyberspace pertaining to the specific trends and tendencies of your car's make and model. Some automotive manufacturers have a mottled history with electrical problems, blown gaskets, or defective original water pumps. These are the types of details an informed consumer should alert themselves to before signing on for an extended warranty. Remember: cars (with all possible hope) are getting more and more reliable—making the express need for extended warranties less and less important. But, the dubious element of automotive ownership still haunts the shadows, and most owners will side with caution—biting the proverbial bullet with regards to purchasing warranties.
Another relevant fact in the world of warranties is the federally mandated lemon laws, which protect consumers from purchasing a lemon of a car. For new automobiles a 3 year/ 36,000 mile factory warranty comes standard with purchase (these warranties are ordinarily exclusionary, which means they cover all facets of the car unless explicitly stated otherwise). Used cars purchased from dealerships usually abide by an industry standard, 3 month/ 3,000 mile warranty—giving the owner some breathing room with regards to potential problems.
Outside of these nominal warranties, extended coverage is offered, both by dealerships and independent providers. Dealerships, on the whole, tend to use extended warranty coverage to up profits (meaning it is a highly marked-up item). Both independent providers and dealerships will additionally try to double-up your coverage—overlapping warranty terms. Beware of this sly and shady practice—double-check the start and end dates of any policy.
Aside from accepting extended warranty coverage from dealerships, automotive owners can readily turn to virtual options—where companies abound, ready and willing to supply warranties. When dealing with e-commerce warranty sites, be sure to verify a solid ranking from a watchdog agency or magazine. Remember: auto warranties are essentially insurance policies, so you don't want a warranty provider to abscond with fees and premiums paid. Visit the Better Business Bureau at www.bbb.com for reputability scores (Standard and Poor's is also a valuable index, as well as Consumer Reports).
So, to tersely summarize: The first auto warranty step is deciding whether or not to purchase additional coverage (beyond compulsory or industry warranty standards). Precluding your petition for danger, the next step is to decide upon coverage specifics (which should be tailored to your particular car—if your vehicle has an unmuddied past of dependability and reliability, scale back the frills and flourishes). And the final step is locating a warranty provider (do not settle exclusively for dealership offers). After that, just make sure you're double knotted, because you wouldn't want to catch yourself in a warranty agent's office with your pants down, now would you?
By Jean-Pierre LacrampeOther Resources:
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