Extended Warranty Myths

"I don't need an extended warranty; I'm covered by the manufacturer".

When your auto’s warranty expires, that's when break downs occur. You could be exposed to large repair losses. Auto extended warranties have benefits like towing, car rental, toll free assistance, trip interruption, lost key lockout. Once the manufacturer warranty ends, the extended warranty picks up for another few years. It's crucial to buy auto warranties early, right when you buy the car, it's the cheapest. Just like life insurance, the longer you wait, the more it will cost, so if you plan to buy a warranty, lock in your savings now while your car is young and healthy. As more repair data surfaces on various manufacturers and models, vehicles are placed into higher rate classes. Once you buy your extended warranty, your rate class cannot change. Get it now, not later.

"I'll just buy my auto warranty at the dealer, it's convenient".

Wrong. It costs more at the dealer, who are just middlemen, marking up what you can buy directly from a warranty company, for much less. Car dealers often resell the extended warranty to you at 2 to 3 times what they paid. Dealers do not show you the contract in advance, so you have no idea what you are signing up to other than their verbal promise, or marketing slick sheets which are not contracts. Sure, it's convenient to just buy an auto warranty while sitting at your car dealer, but it's also convenient to give us a call and buy a better extended warranty at a greater savings.

Car dealer lies: "My car dealer told me the bank requires me to buy the extended warranty or I won't get loan approval"

With car dealer extended auto warranties, you often pay double for less coverage, with things like wear and tear or overheating excluded. Some car dealers lie to you and tell you that you must buy a car warranty to qualify for the loan. All extended car warranties can be refunded 100% in 30 days if no claims have been made. If you were forced to buy an extended warranty you don't want, get your money back.

Do I need an auto extended warranty?

You must decide if you need an extended warranty. The cost to repair today's complex vehicles is rising. If you lease your car for 36 months, you don't need an extended auto warranty. It's a scam for a dealer to sell you one. If you entered into a 60 month auto lease, you should buy an extended warranty, as you are responsible for all repairs. Auto extended warranties protect you from inflation later when you need repairs. Like insurance, if you don't buy it, you'll be looking over your shoulder. The most common repairs are A/C, transmissions, and electrical. Most people buy their auto warranty because they know 10 minutes after the car maker's warranty expires, the antenna motor will fail. That's $200-$1000. Window motors cost $600-$1000. One covered failure can pay for the cost of the extended car warranty.

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