Archive for October, 2011
The term extended warranty is actually a misnomer, since, in the strictest sense of the word, these aren’t warranties at all. True warranties, although that, are included in the price of the product; extended warranty for cars are really service contracts, since they cost extra and are sold separately.
If the vehicle you’ve just bought is new, take a close by look at its factory warranty before making an extended warranty decision. If the vehicle isn’t under warranty, or if you plan on keeping it past its warranty’s expiration, an extended warranty generates sense.
An extended auto warranty might be backed by an independent warranty company; these are known as aftermarket or third party warranties, or by the covered vehicle’s manufacturer. Is the warranty transferable? Some extended warranties end when the person who bought the warranty sells the vehicle. Some extended auto warranties stipulate that restores must be performed at the dealership from which the warranty was purchased; this can certify limiting and inconvenient. Know what’s covered, and what’s not covered by the extended warranty you’re considering. Under a “breakdown” warranty, coverage is extended only to parts that break. Extended auto warranty rates and deals are negotiable. Of course it is not but extended auto warranty is an auto service contract which is sold. The company may already be offering the best extended car warranty policy suited to your automobile.