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Warranty
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| Do You Need an Extended Warranty? |
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| Updated |
Jul 7, 2004 20:36:16 |
| Rating |
 16 ( -2 -12.5% ) |
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Description:
To determine whether an extended warranty purchase is in your best interest ask yourself the following questions:
Q: What does the basic bumper to bumper warranty include?
A: If the extended warranty covers items that are either excluded or limited to a year or less coverage under your basic warranty than you may want to consider purchasing it.
Q: When does the extended warranty start?
A: If the extended warranty begins on the day or number of miles, whichever comes first, that the basic manufacturer's warranty expires then it is a viable option. But if the extended warranty runs concurrent or overlaps with your basic manufacturer's warranty then it is redundant and an unnecessary expense.
Q: How long do you plan to keep your car and about how many miles do you estimate that you will drive it?
A: If you plan to keep your car for longer than the original 3 year/36,000 mile basic manufacturer's warranty runs then the answer may be yes.
Q: If the vehicle would need repairs in the future could you afford them without an extended warranty in place?
A: If you are diligent with your money and have the capability to regularly put money aside for potential repairs then you may not want an extended warranty. If you are like the rest of us, and may not have the funds available when an unexpected repair comes along then having the extended warranty would be a lifesaver.
Q: How much does the extended warranty cost?
A: An extended warranty's price varies according to the level of the plan and amount of coverage you wish to purchase. Figure anywhere from $800 to $1200, maybe more. As a reminder, the cost of the manufacturer's warranty is negotiable.
Q: Would future repairs be more expensive than the cost of the extended warranty?
A: They could be, depending on the cost of the repair itself or the amount of repairs needed. For example, if the air conditioner fails the estimated cost could be $1000 but if the transmission or engine goes and is no longer covered under your basic warranty, figure on $3000 or more.
Q: Does it matter who issues the extended warranty?
A: Yes, a manufacturer-backed warranty is a safer bet. In the past several independent warranty companies have closed, leaving their policyholders with no coverage.
Q: Can the extended warranty be transferred?
A: Some can, with either no charge or a nominal fee guaranteeing this to be a big selling point.
Q: Is wear and tear coverage included?
A: Normally not, but there are some companies that now have packages available that do provide for parts to be replaced when they wear out. This is worth checking out.
Q: Is routine maintenance covered?
A: Probably not.
Q: What benefits are included?
A: As an added incentive some benefits such a roadside assistance, car rental reimbursement, and/or travel interruption protection may be included under your extended warranty.
Q: Where do I have to have repairs done?
A: You may be limited to having the repairs done exclusively at the dealership, while other plans may provide a list of potential repair facilities.\
Q: Is there a right to cancel and a refund policy in place?
A: Negotiate for this option.
Q: What maintenance is necessary to keep the warranty in effect?
A: Keep a record of all the routine maintenance and when you had it done to satisfy the conditions of your extended warranty.
Q: Is there a deductible and how does it work?
A: This varies with each extended warranty and again with the level of the plan offered. You may have to pay a fee every time you take the car in for repairs, or you may have to pay a fee for each separate repair. Some deductibles are set amounts; others are a percentage of the cost of the repairs. Note: Set fees are preferable, less expensive to you. |
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