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