After hours of sitting at a car dealership, when you’re feeling numb from long negotiations over the final price of your new automobile when all you really want to do is slide behind the seat of your new car and drive away, the real hard sell begins.
The financing manager will present his sales pitch, asking you to buy a vehicle extended warranty. Extended automobile warranties are a guarantee that the warranty company will pay for repairs after your vehicle’s full factory warranty expires.
But make a wrong move here and it could cost you hundreds of dollars. Here’s what you need to know when you buy an extended warranty.
Know What a Fair Price Is for Extended Vehicle Warranties
Auto extended warranties are important moneymakers for auto dealers. Chances are, your auto dealer is going to do everything he can to convince you to purchase an extended warranty contract. The dealer markup amount varies across the nation, but aggressive dealers are known to make as much as $1,000 just from the sale of one vehicle extended warranty.
View the secret dealer’s costs for the average national extended auto warranty.
Don’t be Bullied into Buying at the Asking Price.
Driving worry-free from repairs is a nice idea, but paying too much for the privilege isn’t smart. You can and should negotiate a better price. Take the dealer’s asking price, divide it in half, then add two hundred dollars for dealer profit. You should arrive at a fair price and save hundreds of dollars in the process. If your dealer won’t budge on the profit margin, decline their offer. In most cases, the same factory auto warranties and excellent aftermarket extended car warranties can be found online, many at deep discounts.
Beware of the extended warranty sales pitch. Learn what to expect here.
Know When to Buy Your Car Extended Insurance Warranty
Let’s say you plan to keep your car after its original factory warranty expires. Should you purchase an automobile extended warranty? Answering these questions might help you decide.
• Do surprise expenses upset you, especially costly auto repairs?
• Will the cost of replacing a pricey electrical part or air conditioner or transmission strain your monthly budget?
• Would you sleep better at night knowing that major repairs will be covered under an auto warranty? Or would you rather risk it and pay for repairs when and if they are needed?
With a little research, you can find and purchase an auto services extended warranty that’s right for you at a price that won’t break your budget.
About the author: The Warranty Watchman, a.k.a. David Olthoff, has specialized in auto extended warranties for the past 21 years.