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3 things to remember when shopping for extended auto warranties

Mulling over getting an extended auto warranty? However, before you finalize the decision, there are some things you must know about. Firstly, an extended auto warranty is not an actual warranty according to Federal laws. In fact, it’s a vehicle service contract that you can get any time, unlike a car warranty that is included in the purchase cost of the vehicle. The term “extended auto warranty” is more of a marketing label to make it sound like an extension of the manufacturer’s coverage.

3 things to remember when shopping for extended auto warranties
Such type of coverage is offered by dealerships, insurance companies, and auto clubs that can still protect you from unexpected repair costs that a manufacturer’s warranty excludes.

While shopping for extended auto warranties, ensure to remember the following points, so that you will be able to choose the most viable option.

Research
No coverage option will be perfect for all cars. The type of extended car warranty you choose depends a lot of the type of car you have and its history. So, make sure that you research on repairs that are common with the make and model of your vehicle. Surprisingly, problems with in-car technology such as GPS systems, Bluetooth, and Internet connectivity are quite common and can be quite expensive to deal with. So you can consider choosing a plan that reimburses the cost of such maintenance as well.

Negotiate
Fortunately, at most dealerships, you will be able to negotiate the prices of extended auto warranties which is often marked up. To cover your bases while negotiating, we suggest that you research cheap quotes online before having a word with the dealer. You can also bargain with auto clubs and insurance companies, though, any cuts can’t be guaranteed. In any case, it’s worth a shot to do your homework and haggle for a discount.

Invest early for new cars
Typically, new cars come a warranty that lasts for approximately 3 years and if you’re lucky, even for longer. Shopping for an extended warranty while you still have the manufacturer’s protection might not seem like a requirement. However, the older your car gets, the more expensive it will become to get an extended car warranty. If you are determined to get this type of coverage, you should get it within the first year of your purchase. Such double protection won’t be beneficial for the first 3 years; however, if you plan to have the car for more than 4 years, then buying an extended car warranty early will save you a lot of grief in the future.

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