Essential Tips for Choosing the Right Extended Auto Warranty
Learn essential tips for selecting the best extended auto warranty, including research, negotiation, and timing strategies. Protect your vehicle with the right coverage plan for long-term peace of mind and cost savings.
Essential Tips for Choosing the Right Extended Auto Warranty
Considering an extended auto warranty? Before making a commitment, it's important to understand key facts. An extended auto warranty isn't a true warranty under federal law; instead, it's a vehicle service plan that you can purchase anytime, unlike a standard manufacturer’s warranty included in the vehicle price. The term is often a marketing tactic to suggest an extension of original coverage. This coverage is typically offered by dealerships, insurers, and auto clubs, providing protection against unexpected repairs beyond manufacturer coverage.
When shopping for an extended auto warranty, keep these key points in mind to ensure you select the best plan for your needs.
Research Thoroughly
Not all coverage plans suit every vehicle. The best warranty depends on your car's make, model, and maintenance history. It's wise to research common repairs for your specific vehicle, especially costly tech issues like GPS, Bluetooth, and internet systems, which are increasingly prevalent and expensive to repair. Selecting a plan that also covers such tech repairs can be beneficial.
Negotiate Prices
Many dealerships mark up the cost of extended warranties, giving you room to negotiate. Before visiting, research affordable quotes online to strengthen your bargaining position. You can also try negotiating with auto clubs or insurance providers, although discounts aren't guaranteed. Doing your homework and bargaining can lead to significant savings.
Buy Early for New Vehicles
New cars usually come with a warranty lasting about three years or longer. While purchasing an extended warranty while your vehicle is covered might seem unnecessary, it becomes more costly to add coverage as your car ages. For vehicles you plan to keep beyond their initial warranty period, acquiring an extended warranty within the first year is advisable. Early purchase can save money and offer peace of mind for longer-term ownership.
