When a vehicle is purchased there are two opportunities to make decisions about extended warranties, at the point of purchase and then later via mail or phone solicitation. These purchase decisions need to be evaluated carefully regarding cost and actual benefit. Often, these warranties only cover specific repair expenses and in many cases only up to defined capped limits. In addition, they often require co-pays or deductibles. As a Shop Owner for many years, I have witnessed firsthand the disappointment on the part of the consumer when repairs were not covered in full.
These extended warranties are highly profitable for the marketers, financing institution and warranty companies themselves. These warranties are designed to be profitable and rates are formulated to maintain this profitability. Consumers should be particularly wary of after the sale solicitations and are advised to not agree to any purchase until they have had a chance to carefully review the coverage and the terms of payment.
Many consumers have discovered at the time of repair that the warranties do not cover to the extent assumed. Additionally, the consumer is often required to pay the full term of the warranty without an opportunity to drop the program.
There are, however, instances where these warranties make sense. If the vehicle purchase price is above $40,000, a reputable warranty may be a good investment. These high-end vehicles tend to have higher than normal average repair costs due to the more complex technology and expensive accessories. These higher repair costs often justify the upfront expense of the extended warranty.
There are several important points to consider when deciding to purchase an extended warranty. Warranties offered by Auto Dealerships are usually reputable and could be considered a safe purchase.
Aftermarket warranties need to be researched by asking your local repair center, OEM Dealership as well as checking the company’s reputation on Internet. You will also need to carefully review items covered, deductible or co-pay requirements and payment terms.
Professional Fleet Services does not sell or endorse any of these products but has had positive experiences with Guardian Warranty, Wynn’s Warranty and OEM extended warranties. If you run into problem it is time to call Sam @ Your Lansing Auto Repair Experts! http://www.professionalfleet.com