The Auto Consumer Review

What To Look For When Shopping For Auto Extended Warranties

All new cars come with a factory warranty that is usually very comprehensive and insures that you won't have to face a major repair bill during the time that the warranty is in effect. And for the most part, you really don't need anything other than the factory warranty in order to be well covered during this period. But as soon as the manufacturer's warranty expires you are completely vulnerable to any kind of repair that comes along, and sometimes it can be very expensive.

An extended auto warranty on the other hand, picks up where the factory warranty leaves off, and can extend that coverage on out for as long as you wish. With the high cost of vehicle repairs these days, many people are turning to extended auto warranties to lock in their repair costs to the amount of the contract for peace of mind as their vehicle gets older. With that in mind, here are some points to consider when shopping for an extended auto warranty:

• It's generally best to avoid buying an extended warranty from the car dealership when you buy your car. This is a profitable part of their business and they often will mark it up considerably and build it into yout auto loan so that you don't really notice how much extra you are paying. You can save a lot of money almost every time by buying the extended auto warranty on your own instead. That way you avoid the markup from the middleman.



• When you start shopping for an extended auto warranty, look the coverage details over carefully and make sure that the major components of your vehicle are well covered for the life of the contract and compare plans to see what different companies have to offer.



• Make sure that your plan allows you to take the vehicle to the mechanic of your choice and that you are not restricted to using a single repair facility or one that is too far away to be practical.



• Compare costs with each deductible plan. Most of the time it's best not to opt for the $0 deductible plans as they will be very expensive, and paying a small reasonable payment for each repair occurrence should not present a problem anyway, as it's the large repair bills that you are trying to avoid.



• Make sure that your contract also provides for a rental vehicle should your car be in for repairs for an extended period of time so you aren't without transportation while the vehicle is being repaired.



• A good extended warranty should also include the ability to transfer the contract to the next vehicle owner in case you decide to sell it before the contract has expired. This can be a very important selling point to ease the minds of prospective buyers when you go to sell.

Extended auto warranties are excellent ways to be well prepared and insured against expensive auto repair bills, so follow the guidelines above and you should be able to get an extended warranty that will give you both coverage and peace of mind.