Buying a car makes you feel good. But then you are always faced with the dilemma of whether to say yes or no to the various offers such as paint protection, road-hazard warranty, theft-recovery system, and prepaid maintenance plans that are made by the F&I Manager. Of all the products offered, the extended warranty is usually the priciest.
It is possible to buy an extended warranty at any time, either from the dealer or any other auto warranty provider. In fact, many auto warranty providers make it a point to get in touch with car owners through auto warranty leads. However, it makes sense to purchase this warranty while your car is still covered by the manufacturer warranty. The price might go up if you purchase it after the expiry of the manufacturer warranty.
Now here are 5 questions you may have to ask yourself before buying an extended auto warranty:
Who is standing behind the warranty?
The warranties that most dealerships and auto warranty providers who come to you via auto warranty lead, offer, are backed by companies that come with varying track records. However, you should make sure the warranty is backed by the automaker before you purchase it. Manufacturer-backed extended warranties are offered by many dealerships across the country. Also, check for online reviews before making your decision.
Is this the best price you can get?
There are little chances that you will be allowed to shop around when the F&I manager offers you the warranty. You will have to do some research before going to the dealer. If you have exhausted all your resources on your car purchase, you may want to buy the extended warranty sometime later. But do get a quote from the F&I manager before leaving the place. This will be a good comparison point whenever you decide to shop around for an extended warranty.
What is covered and what is not?
Extended warranties are warranties that extend for a longer period, but they are not all-encompassing. They do not cover many items that are subject to wear and tear. While shopping for extended warranties, you might come across some packages such as silver, gold, and platinum with different levels of coverages and different prices. It is always better to read the fine print before going for any one of these. Also, find out if the repairs are fully covered. There are contracts that require you to pay up for the repairs and get reimbursed at a later date.
Do you have a history of car breakdowns and repairs?
If you have owned cars before, think about the kinds of problems you have had to face. How many times have you had a flat tire in the middle of the road, which could have been covered by a road-hazard tire warranty? How much have you spent on repairs that were not covered by your manufacturer-backed warranty? You may not have the same repair history with this vehicle, but it sure gives you a fair idea of what you can expect.
Do you really need this warranty?
Most people who buy new cars may not need extended warranties. Still, as an extra measure, you can always set aside some of the amounts that you would pay for the warranty and use it for car repairs if and when they come up.
If you are a belt-and-suspenders person who finds comfort in knowing that all major repairs of your car will be taken care of, it is always better to go for an extended auto warranty. Make sure you do your research before you say ‘Yes’ to any of the auto warranty providers that come to you via auto warranty leads.