One of the most popular add-ons in new and used car sales in Oklahoma City, Atlanta, and anywhere else in America is an extended warranty. Its main purpose is to extend the manufacturer’s warranty for a longer period, allowing you to still offset the repair costs of your vehicle down the road when the original warranty expires.
The comprehensive policy can be offered by either a dealer or a third party. One of the chief differences between the two is that the latter would require you to pay for the repair first out of your pocket and then submit the receipts for reimbursement to the warranty company.
Even if you hear the term thrown around all the time, there’s a good chance you still have wrong assumptions about it. Unless you get them out of the way, they would always cloud your judgment when it comes to getting one.
Used Car Buyers Should Skip It
One of the costliest mistakes of used car buyers is to walk away from an extended warranty. Although many vehicles in the used auto market are truly reliable, there are instances that mechanical problems happen. If the used vehicle was not well maintained by its previous owner and its original warranty is nearly over, saying yes to the extended warranty is the most sensible thing to do.
Coverage Is Always Bumper-to-Bumper
Hudiburg Nissan and other dealers say that some extended warranties only cover a portion of the vehicle. You must clear this up right from the start. If the warranty provider says it would cover any damage to your vehicle, demand to see it in writing to ensure that promise would be honored.
Extended Warranties Are Always Backed by the Automaker
This doesn’t happen all the time. Some manufacturers have nothing to do with the extended warranties their partners and other companies offer. It pays to know whether or not the automaker is connected to this service contract to know exactly where the repairs can be made.
Buying an extended warranty may not make sense in certain instances, but it should never be an afterthought when buying used vehicles because you can’t buy it anymore once the original warranty expires. As much as you want to save on the sale, an optional product that spares you from costly repairs is never a waste of money.
