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