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Beware
of extended automotive warranties!
Not all used car warranties are equal, find out what to look for and
what you need in a used car warranty.
First, before
you purchase any used car, ask the dealer for a CARFAX
report. If the dealer does not offer this service, you can
obtain one yourself at;
http://carfax.com the first step to protecting yourself
against buying used cars with costly hidden problems. CARFAX searches its nationwide
database and provides a detailed vehicle history report in
seconds.
If you can't get direct
information about a warranty company by an online search on
Web Assured or Better Business Bureau, then don't buy from
them. Cheapie warranties exclude lots of coverage, leaving
you with few covered repairs, many don't answer their
phones, or require you to pay shops first then try to get
reimbursement from the warranty company. We only recommend
auto warranties who pay repair shops directly. You get your
best deals buying an auto warranty direct form the warranty
company.
What is an auto extended warranty?
An auto extended warranty is a vehicle service contract
between the car warranty company and you. When you buy your
Ford warranty, they pay for repairs covered by the contract.
Extended auto warranties are NOT insurance policies. Your
service contract money is deposited in a "claims reserve
account", insured in case the administrator goes belly up.
An auto extended warranty is the most confusing, profitable
product car dealers sell. The language is tricky, and if you
don't understand contracts you're in trouble. Auto extended
warranties extend the original manufacturer's car warranty.
ALERT: We recommend car warranty companies who administer
their own auto warranties. Great examples are
1SourceAutoWarranty.com, the fairest priced warranty company
and also WarrantyDirect.com, the Rolls Royce of all
warranties. I also get a lot of emails asking me about other
car warranty companies on the Internet. Based on what I
found when I investigated these auto warranties below, here
is why we DO NOT recommend the following car warranty
companies:
Understand auto warranty coverage before you buy.
People buy auto warranties without considering what they are
buying. They buy extended warranties as an afterthought at
the register in Best Buy, not knowing the coverage for their
TV. Americans hear "extended warranty" and think they are
protected by some golden umbrella covering anything that
goes wrong. Likewise, auto warranty customers fail to read
their contract, fail to understand coverage, fail to adhere
to proper vehicle maintenance schedules, then wonder why
their auto warranty claim was rejected. Some consumers buy a
used car, get an extended auto warranty, thinking the
warranty company will recondition the whole car for them.
They wrongly file complaints against their auto warranty
company when repairs are denied, simply because their own
foolish definition of coverage differs from the auto
warranty company's contract stuffed in a drawer somewhere.
You are smarter than that.
Used Car Extended Warranties
Used car extended warranties are available.
1SourceAutoWarranty will sell you a warranty on a used car
with up to 100,000 miles, probably the highest in the
industry. They will even offer their wear and tear Diamond
Coverage for vehicles with up to 100K. On high mileage cars,
many failures will be wear and tear, not mechanical
breakdown. Don’t settle for mechanical breakdown coverage on
your used car. Most used car warranties, like Warranty
Direct, only offer their bumper-to-bumper coverage for
vehicles with less than 50,000 miles. With high mileage
cars, your used car extended warranty only covers half your
failures. This is why I tell you buy the top level wear and
tear auto extended warranty, like 1SourceAutoWarranty, so
you get best coverage.
If you buy a used car, you absolutely must get a CARFAX
Vehicle History Report on the VIN number and have a mechanic
inspect the car on a lift. If you do not do both of these,
then do not buy that used car. You have been warned.
According to CARFAX, When purchasing a used car, it is a
good idea to check and see if there is a warranty already in
place. This can also be a good negotiation tool for the
buyer. You can purchase an extended warranty right before
the manufacturer’s original warranty runs out. By getting a
Vehicle History Report on the car, you can determine if it
has or had a salvage or junk title in its past. As noted in
a recent warranty article published by CARFAX, you can find
out the estimated remaining warranty coverage in the
Warranty Check section of the CARFAX Vehicle History Report.
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