Automobile Extended Waranty Coverage You Must Have

used car warranties

Are you considering an extended warranty for your next automobile? Whether you're choosing to buy new or used, the price for peace of mind is immeasurable. For many of us "road warriors," the thought of a car battery suddenly dying or a tire flying off and stranding us can be daunting. What if we need new brakes when we're low on cash or what if our transmission fails, costing over $500 in repairs? You may be surprised to learn that there are many options for auto extended warranties and that some are practical, while others aren't quite worth the money. If you're wondering what to look for in an extended auto warranty, then you're not alone.

Did you know that an auto salesman can make more money from selling you an extended warranty than selling you the car? The most profitable part of the retail auto business is, in fact, the extended automobile warranty, where anything over the dealer's cost is profit. Generally speaking, salesmen get a flat fee for each warranty sold, plus the balance of the profit. The fees can range from $250 to $1750, and when compared to third party warranties, dealership plans cost, on average, 40% to 100% more.

Another factor to consider is auto warranty for "wear and tear." This type of warranty can be hard to find, since many only cover mechanical failure. However, you can definitely find extended warranty coverage that includes "wear and tear," thereby covering parts like the idler arm, piston rings, U joints, CV joints, wheel bearings, motor mounts, suspension bushings, tie rod ends, seals, gaskets and other engine parts that gradually wear down and may or may not cause a mechanical breakdown.

If you have an anti-lock braking system, then you'll want to make sure your coverage extends to ABS and instances of overheating. The comprehensive website, carbuyingtips.com recommends Warranty Direct and Nation Warranty Corporation, which both include "wear and tear" in their plans.

Lastly, ask your warranty company about things like a rental car, towing and travel reimbursements during the Standard Warranty Period. These extended warranty benefits can save you a lot of money and hassle if you get into an accident or suffer a breakdown! Also, check to be sure you can have your repairs covered at any ASE Certified Repair Shop. (Nothing is worse than having repairs done, only to find out that the repairmaster wasn't part of the affiliate network!) Additionally, ensure that your auto warranty has a $0 deductible and that they pay the repair shop directly. If your warranty company asks that you pay upfront and "get reimbursed later," then it could be a bunk deal. However, extended warranties can be a smart investment if you take the proper precautions and do your homework!