Used Cars Warranty

Can I get an Extended Warranty from a Dealer?

When you buy a car you will be making a lot of decisions, and many of these will be expensive. You make these choices and hopefully will end up with the right make and model, the right colour and options and at the right choice as well. Yet do you buy an extended warranty? This is a vital decision, and some dealers have introduced products which make that decision easier, such as warranties which last longer than before – such as Chrysler's 7 year warranty. These products are available for new cars but also for late model used cars. Their value depends on a large number of variables, but there are definitely some major concerns that need to be addressed.

When you buy a new car you will most likely be offered an extended warranty. If you have done the right research you should know if you want that and who from.

They are not for everyone. For instance, how long are you likely to own the vehicle for? Should it be for a three year lease, then it is likely the regular manufacturer will provide a warranty that will cover you for long enough, making an extended warranty a waste of money. Even if you normally own cars for between 3 and 5 years, paying for out-of-warranty repairs may be cheaper than paying for a warranty.

You should also find out about the record for reliability of the model you are about to buy. Should there be a history of tranmission problems with that car then you could find that one out-of-warranty repair will exceed the cost of the extended coverage. Models with a good reputation may not need the extended coverage as long as you are selling them reasonably soon after the manufacturers' warranty ends. You can get this information off service-bulletin and recall information which will be posted on many websites.

If you do go for an extended warranty then you don't have to buy it from the dealer in which you buy the car. You won't use it until the manufacturer's warranty has passed, so you can wait until near then for that to happen.

The dealer can set their price on the warranty, so don't just take it straight off. Also understand that dealers get more money if you buy a warranty underwritten by independent companies than when you buy one that is factory-backed. The ONLY advantage to buying at your dealer is that you can add the cost to the financing plan which may be convenient for you.

Also, check where you can get repairs done and read all of the fine print so you know what parts are covered and what conditions apply to the policy.

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