Car warranties ensure that if your car breaks down, you will have the necessary funds available to repair it. There are numerous companies offering car warranties today, but not all of them are created equal. To get the best deal on a car warranty, you must arm yourself with information that helps you pick the good warranty companies from the bad. To help you in the process, here are 4 secrets of car warranties that everyone should know before putting money down on one.
1. Prices are Negotiable
You may think the price on the manufacturer’s extended warranty is set in stone, but think again. Like the price of the automobile, the cost to cover repairs can also be negotiated. To ensure you get the best rate on auto warranties, call a few dealers to find out what their prices are on extended warranties. Once you’re armed with general pricing information, begin the negotiation process. Don’t be afraid to low ball the initial quote, in an effort to bring down the overall cost of the warranty. You and the dealer are likely to meet in the middle between their initial quote and your counter offer
2. Costs Can Be Financed
When you are shopping for auto warranties on new vehicles, the cost of the warranty can often be folded into the car’s financing arrangement. Instead of paying a large sum when the warranty needs to take effect, you see a small increase in your monthly payment amount. However, some dealers only quote a monthly rate on the warranty. When you are planning to add the cost of the warranty to your car finance, ask about the total cost before you sign on the bottom line. This will tell you whether you are getting a fair price and assist with the negotiation process listed above.
3. Warranties Can Be Transferred
Extended used car warranties can often be transferred to the new owner of a vehicle when the car is sold. If you are selling a car with an extended warranty, this fact is a good selling feature, offering additional value to the prospective owner. If you are purchasing a used vehicle, ask about extended used car warranties, to see if you can keep the warranty currently in effect. In some cases, this transfer requires a letter from the current owner and a small transfer fee. Transfer the policy when you purchase the vehicle, to ensure repairs are covered right away.
4. Third Party Warranties
Many car purchasers turn to third-party warranties as a means of saving money. Because some auto manufacturers have closed down recently, manufacturer warranties are not holding as much attraction as they once did. However, if you decide to go with a third party warranty, thoroughly research the company and read the fine print of the policy before purchasing. This extra effort may go far in protecting you from fraud and lack of coverage when you need it most.
Car warranties can be very helpful in covering repairs to your vehicle after the initial warranty expires. By observing these secrets of the warranty industry, you can save money and ensure complete coverage of your automobile.