| Buying a used car? You need an extended | | | | simply so much ignorance about auto |
| auto warranty to protect you from | | | | warranties. Your best hope is to learn |
| expensive surprises down the road. But | | | | more. |
| be careful when your dealer tries to | | | | Dealer-Issued Used Auto Warranties: Why |
| sell you used auto extended warranty | | | | Does Anyone Buy Them? |
| coverage. Usually, the dealer is simply | | | | • Most often, the buyer simply never |
| reselling used auto warranties issued by | | | | thought about an extended auto warranty |
| a used auto warranty company, with a | | | | before going to the dealership. When the |
| markup of up to $1000. You could just as | | | | salesperson explains how important |
| easily have bought the extended warranty | | | | extended auto warranty coverage is, the |
| directly from the auto warranty company. | | | | buyer just thanks him for the tip and |
| But overpaying for a third-party used | | | | buys it. |
| car extended auto warranty is certainly | | | | • The buyer doesn't realize how |
| not the worst used auto warranty deal | | | | expensive the warranty is. Of course, |
| you can get. The worst auto extended | | | | car repairs can potentially be so |
| warranty deal is to buy one that isn't | | | | expensive that even an overpriced |
| issued by a third party at all. | | | | dealer-issued warranty can pay for |
| Dealer-Issued Extended Auto Warranties | | | | itself several times over. Meanwhile, |
| Explained | | | | next to a $15,000 car, even an |
| Yes, some dealers actually sell extended | | | | overpriced $2500 dealer-issued warranty |
| auto warranties they've created | | | | seems cheap. But if you're going to buy |
| themselves. These dealer-issued auto | | | | a warranty, why not buy a really good |
| warranties typically only allow you to | | | | one? |
| get service at the dealership. They | | | | • Many buyers mistake dealer-issued |
| either don't cover repairs done anywhere | | | | warranties for manufacturers' |
| else at all, or they only cover | | | | warranties. In some cases, the |
| emergency repairs for breakdowns. | | | | salesperson may even try to let you |
| Often, a dealer-issued used auto | | | | think the warranty will cover repairs at |
| extended warranty even restricts you to | | | | any of the dealerships affiliated with |
| getting maintenance at the dealership | | | | that manufacturer (say, any Chrysler or |
| only. With a captive clientele, the | | | | Mitsubishi dealership). Of course, such |
| dealerships often charge much more than | | | | warranties do exist, but they're more |
| local mechanics. | | | | common for new cars than used cars. |
| There are some other big problems with a | | | | In short, if a used car dealer ever |
| dealer-issued used auto extended | | | | tries to sell you an extended auto |
| warranty: | | | | warranty, make sure to ask flat out: |
| • What happens if you move far away? | | | | will this warranty cover repairs done |
| Answer: you'd have to buy another auto | | | | anywhere, or just this dealership? |
| warranty. | | | | Double-check the warranty itself to make |
| • What if you're driving somewhere far | | | | sure it has a third-party company's name |
| away when your car breaks down? Answer: | | | | on it, not the dealership's. |
| if the used auto warranty doesn't cover | | | | Better yet, why not just buy the |
| reimbursements for emergency service, | | | | extended warranty directly from the |
| you're in trouble. Even if it does cover | | | | warranty company rather than pay the |
| reimbursements, you'd better hope your | | | | dealer hundreds of dollars of markup on |
| credit card or checking account can | | | | it? That way, you can also research the |
| handle the damage in the meantime. | | | | warranty thoroughly, without pressure. |
| • What if the dealership goes | | | | In fact, you should start investigating |
| bankrupt? Answer: get in line behind the | | | | extended auto warranties even before you |
| banks, the car manufacturer, the | | | | go to the dealership. You'll certainly |
| dealership's vendors, and everyone else | | | | like the salesperson's face when you |
| trying to get money out of the business. | | | | tell him you know what the original |
| • What if you just aren't satisfied | | | | warranty company charges for the |
| with the dealer's work? Answer: complain | | | | warranty they're trying to sell you. |
| very, very nicely. You can't take your | | | | You'll also know in advance how much |
| business elsewhere unless you're willing | | | | total the car purchase really will cost |
| to pay for it. | | | | you. |
| If you comparison shopped the | | | | Don't wait. Start looking at extended |
| dealer-issued extended auto warranty, | | | | auto warranties now, before the |
| you'd realize it wasn't worth it. But | | | | dealerships' salespeople ever have a |
| most people never do a used auto | | | | chance to breathe down your neck. |
| extended warranties comparison. There is | | | | |