Car warranties at used car lots are sold by giving the same yet very effective pitch, which most of us would agree to in a heartbeat when you see that shiny 2nd hand car you just purchased. The finance and insurance officer would ask you if you are planning to keep that car for a while, why not just pay upfront for the cost of service and maintenance now?
Effective right? Yes, however, many customers overpay the car lots for this when they do not need to, due to the excitement for a new car or due to not looking around before they lock that purchase in.
Now, what do you need to know about best extended car warranty and how you can save yourself from paying a lot more than the product is worth. Let us find out.
Extended warranty negotiations
Extended warranties are offered on cars that no longer fall under the manufacturer warranty and are offered by 3rd party companies. Like everything else they sell, dealerships offer you the extended warranty by taking a profit over the actual cost of it. This is a fair industry practice and is done by all. However, the profit they take has a lot of room for negotiation there, and you can bring the cost down to even $200 over the cost.
You can do this by asking around and calling dealerships and offering them to pay $200 over their cost. Compare them all and go with the lowest quote you get.
Another route you can take to ensure you are not overpaying is paying someone else to buy the warranty on your behalf, like a service that deals with this. Do not go to brokers who work on commissions but to people known industry-wide to do this. They will make sure you get the best deal on your extended warranty.
Manufacturer vs 3rd party warranties
You might know very well that Car manufacturers offer extended warranties, but your sales manager will often prompt you that they are not worth it or are more expensive. Well, It is time to settle why you should always go for a Manufacturer warranty then a third party warranty.
The first thing you will be satisfied with is that the car goes straight to mechanics who know every nook and cranny of the car you have once you buy a manufacturer warranty. They have spent years working on it, and if for some reason the car is very new, the mechanic has received specialized training about it. So your car will be in good hands once you bring it to the shop.
You also do not have to wait around for repairs or parts once your request for repairs has been accepted. The mechanics will get straight on it, and you will receive the car as soon as they are done.
Your manufacturer will never ask you for upfront payments or make you wait to file reports and claims for reimbursement.
The last and the most significant reason a manufacture’s warranty is a godsend for a potential vehicle buyer is that once the car is sold, the warranty does not vanish all of a sudden as it does with the third party warranty services. The next owner will get the same warranty fully transferred from the last owner.
You can get a manufacturer warranty from almost most dealerships; however, some manufacturers sell them online as well, so checking online to see if your car manufacturer does can also save you some money.
Timing is everything
If you buy the extended warranty at the time of purchase, then the warranty’s price will be covered in your monthly payments. However, this can be a double-edged sword as you might end up paying a lot more than you would have in the first place.
Shopping around before your manufacturer warranty expires is a great way to ensure that you get the best price. However, too much waiting around will also not do you good as the car might no longer qualify for an extended warranty, and your coverage will be minimal.
However, you need to understand that if you were ever buying a car that is out of the manufacturer’s warranty, you would have no other choice than to buy the warranty at that time. So, shop around before you are ready to lock in your purchase.
One reality of the warranty services is that they have different tiers. Some offer essential maintenance, while higher-tiered offer extensive repairs as the tiers go up, and so do the prices and deductibles. You need to pick and choose which one is good for you and which ones are not. Also, check the fine print to see what services are excluded from the tier you wish to purchase.