Should you buy an extended warranty?

Dealers may try to sell you a extended warranty (also known as an auto service contract) when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract or extended warranty is sold separately and is a promise to pay for certain repairs or services.

Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. If you want to get the additional coverage you can always negotiate the price of the extended warranty adviceontime.com is a good source of info. The service contract may duplicate warranty coverage you get from the manufacturer or dealer.

Ask these questions: Does the dealer, the manufacturer, or an independent company back the service contract? What happens to your coverage if the dealer or administrator goes out of business? How are claims handled?

Can you choose among several service dealers or repair centers or do you have to return to one dealer? Is your car covered if it breaks down on a trip or if you move out of town? Do you need prior authorization for repair work?

Common repairs for parts like brakes and clutches generally are not included in service contracts. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made. Failure to keep up manufacturer's recommendations for routine maintenance can void the service contract.

The contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself You must ask yourself how long do you keep your cars. If your history shows that you keep a car on average 3-4 years then you are fine under the Factory Warranty. You may purchase the Extended Service Plan any time up to the end Of the Factory warranty, but you must pay cash at that time.

If you want to "Finance" at possibly lower rates you must do so at Time of purchase. Factory Warrantys(Ford, Chevy etc) are more $ than "After Market" but will cover you Nationally If you are buying a new car and only going to keep it for 3 years then no. But most people buy used then I say YES.

Answer this question would you rather pay $1500 out of your pocket for 1 repair or a couple bucks every month and not have to. Plus the work being done is by a mechanic that only works on those type of cars so it will more then likely done right. Also how many times have you brought your car somewhere and they found things wrong and you said ill do it later so then you drive around with a annoying problem which then leads to another problem.

When you could've got it done for free. Also most dealerships will give you a loaner car to drive while your car is being fixed! I was an underwriter for an extended warranty company for two years, and I would suggest never buying one.

The car dealers who sold them left out valuable information and gave out lots of misinformation when selling them to customers. Nine out of ten times, customers were calling to have them cancelled because they did not do what they were told they would do. They were 5 or 6 different types of warranties that fit depending on what type of vehicle you were buying, was it new or used and what the mileage is on the vehicle.

The newer the vehicle the more money the dealer is going to get out of it, so regardless they sold the "new" one and when the customer went to use it they would find that there was not coverage for what they needed repaired. If you take the amount of money you are paying into your payment every month that is for the warranty and put it into your savings account you would have the money set aside when something does happen, then you don't have to go through the hassle of waiting while the warranty company decides if it is covered while your vehicle sits in a shop waiting to be repared I've been in the car business for 19 years. First as a mechanic, then in new and used car sales, and now for the last five years as a Fiance Manager in a new and used car dealership.

If you KNOW that you will not keep the car past the factory warranty, then don't buy the extended warranty. However, if you drive higher mileage, keep a car longer than the factory warranty, or if you're buying a used car, then an extended warranty is probably for you. Since most Americans live paycheck to paycheck, the idea of putting money away for mechanical breakdowns is unrealistic.

I deal specifically with people's credit and I see a lot of problem areas due to uncovered, and unaffordable mechanical breakdowns that could have been avoided with the purchase of an extended warranty. Make certain the warranty company you choose is nationally known and usually insured by an even larger mother company Not all warranties, but definitely GAP insurance If you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months! For a car... if and only if you know nothing about cars and have a lot of money.In general an extended warranty is nothing but pure profit for just about any business.

This is the reason employees make so much commission from selling extended warranties It's best to buy an extended warranty ALTERNATIVE POV Agree with the above for the most part, but disagree that it's a bad idea to buy an extended warranty. I did extensive research on warranties and found that most people who experienced a repair during their coverage were very glad that they had an extended warranty, and recommended to others that they purchase one. Those who did not experience a repair did not.

About 80% of extended warranty buyers experience a repair during their coverage. So ... you have an 80% chance of being glad that you had one. Convinced me.

Having said that, it does make sense to find out whether the company providing your coverage is legitimate and secure ... one of the best ways to do that is to ask about third-party certification and awards, from companies like BBB, or category specialists like Motor Trend or J D Power FURTHER CONSIDERATIONS Keep in mind that extended warranties are also routinely offered during the sale, or shortly after the sale of consumer goods other than automobiles. Many of the same considerations disccssed regarding auto extended warranties apply to warranties on consumer goods. Perhaps the biggest difference is that many of the vendors of consumer product extended warranties are separate companies than the manufacturer of the item.

So it is very important to know who or what you are dealing with (that is, a company such as Ford Motor Company will not be standing behind the extended warranty on your refrigerator) Understand that an extended warranty is essentially an insurance product, in the sense that the consumer is paying a premium at present for the promise of performance at a later time. Most states license and regulate legitimate extended warranty companies, including to ensure that they maintain sufficient levels of capital to sustain operations and to pay anticipated claims An extended warranty may be sold under a product name (for example, "Best Forever") but what is important is the identity of the entity that is financially responsible for the payment of warranty claims; it is that entity that has to be licensed. If an extended warranty is offered at the time that the product is sold, the store salesperson may not know all of these particulars.

Do not be pushed into buying the warranty at that moment, as you will doubtless have the chance later to get one if you desire it. In the meantime, do the necessary homework, including contacting the state insurance regulator to make sure that the warranty provider is licensed, the number and nature of the consumer complaints that may have been filed against it, and how they have been resolved.

Ul>Dealers may try to sell you a extended warranty (also known as an auto service contract) when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract or extended warranty is sold separately and is a promise to pay for certain repairs or services.

Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. If you want to get the additional coverage you can always negotiate the price of the extended warranty www.adviceontime.com is a good source of info. The service contract may duplicate warranty coverage you get from the manufacturer or dealer.

Ask these questions: Does the dealer, the manufacturer, or an independent company back the service contract? What happens to your coverage if the dealer or administrator goes out of business? How are claims handled?

Can you choose among several service dealers or repair centers or do you have to return to one dealer? Is your car covered if it breaks down on a trip or if you move out of town? Do you need prior authorization for repair work?

Common repairs for parts like brakes and clutches generally are not included in service contracts. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made. Failure to keep up manufacturer's recommendations for routine maintenance can void the service contract.

The contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself. You must ask yourself how long do you keep your cars. If your history shows that you keep a car on average 3-4 years then you are fine under the Factory Warranty.

You may purchase the Extended Service Plan any time up to the end Of the Factory warranty, but you must pay cash at that time. If you want to "Finance" at possibly lower rates you must do so at Time of purchase. Factory Warrantys(Ford, Chevy etc) are more $ than "After Market" but will cover you Nationally.

If you are buying a new car and only going to keep it for 3 years then no. But most people buy used then I say YES. Answer this question would you rather pay $1500 out of your pocket for 1 repair or a couple bucks every month and not have to.

Plus the work being done is by a mechanic that only works on those type of cars so it will more then likely done right. Also how many times have you brought your car somewhere and they found things wrong and you said ill do it later so then you drive around with a annoying problem which then leads to another problem. When you could've got it done for free.

Also most dealerships will give you a loaner car to drive while your car is being fixed! I was an underwriter for an extended warranty company for two years, and I would suggest never buying one. The car dealers who sold them left out valuable information and gave out lots of misinformation when selling them to customers.

Nine out of ten times, customers were calling to have them cancelled because they did not do what they were told they would do. They were 5 or 6 different types of warranties that fit depending on what type of vehicle you were buying, was it new or used and what the mileage is on the vehicle. The newer the vehicle the more money the dealer is going to get out of it, so regardless they sold the "new" one and when the customer went to use it they would find that there was not coverage for what they needed repaired.

If you take the amount of money you are paying into your payment every month that is for the warranty and put it into your savings account you would have the money set aside when something does happen, then you don't have to go through the hassle of waiting while the warranty company decides if it is covered while your vehicle sits in a shop waiting to be repared. I've been in the car business for 19 years. First as a mechanic, then in new and used car sales, and now for the last five years as a Fiance Manager in a new and used car dealership.

If you KNOW that you will not keep the car past the factory warranty, then don't buy the extended warranty. However, if you drive higher mileage, keep a car longer than the factory warranty, or if you're buying a used car, then an extended warranty is probably for you. Since most Americans live paycheck to paycheck, the idea of putting money away for mechanical breakdowns is unrealistic.

I deal specifically with people's credit and I see a lot of problem areas due to uncovered, and unaffordable mechanical breakdowns that could have been avoided with the purchase of an extended warranty. Make certain the warranty company you choose is nationally known and usually insured by an even larger mother company. Not all warranties, but definitely GAP insurance.

If you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months! For a car... if and only if you know nothing about cars and have a lot of money. In general an extended warranty is nothing but pure profit for just about any business.

This is the reason employees make so much commission from selling extended warranties. It's best to buy an extended warranty. ALTERNATIVE POV Agree with the above for the most part, but disagree that it's a bad idea to buy an extended warranty.

I did extensive research on warranties and found that most people who experienced a repair during their coverage were very glad that they had an extended warranty, and recommended to others that they purchase one. Those who did not experience a repair did not. About 80% of extended warranty buyers experience a repair during their coverage.

So ... you have an 80% chance of being glad that you had one. Convinced me. Having said that, it does make sense to find out whether the company providing your coverage is legitimate and secure ... one of the best ways to do that is to ask about third-party certification and awards, from companies like BBB, or category specialists like Motor Trend or J D Power.

FURTHER CONSIDERATIONS Keep in mind that extended warranties are also routinely offered during the sale, or shortly after the sale of consumer goods other than automobiles. Many of the same considerations disccssed regarding auto extended warranties apply to warranties on consumer goods. Perhaps the biggest difference is that many of the vendors of consumer product extended warranties are separate companies than the manufacturer of the item.

So it is very important to know who or what you are dealing with (that is, a company such as Ford Motor Company will not be standing behind the extended warranty on your refrigerator). Understand that an extended warranty is essentially an insurance product, in the sense that the consumer is paying a premium at present for the promise of performance at a later time. Most states license and regulate legitimate extended warranty companies, including to ensure that they maintain sufficient levels of capital to sustain operations and to pay anticipated claims.

An extended warranty may be sold under a product name (for example, "Best Forever") but what is important is the identity of the entity that is financially responsible for the payment of warranty claims; it is that entity that has to be licensed. If an extended warranty is offered at the time that the product is sold, the store salesperson may not know all of these particulars. Do not be pushed into buying the warranty at that moment, as you will doubtless have the chance later to get one if you desire it.

In the meantime, do the necessary homework, including contacting the state insurance regulator to make sure that the warranty provider is licensed, the number and nature of the consumer complaints that may have been filed against it, and how they have been resolved.

Dealers may try to sell you a extended warranty (also known as an auto service contract) when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract or extended warranty is sold separately and is a promise to pay for certain repairs or services.

Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. If you want to get the additional coverage you can always negotiate the price of the extended warranty www.adviceontime.com is a good source of info. The service contract may duplicate warranty coverage you get from the manufacturer or dealer.

Ask these questions: Does the dealer, the manufacturer, or an independent company back the service contract? What happens to your coverage if the dealer or administrator goes out of business? How are claims handled?

Can you choose among several service dealers or repair centers or do you have to return to one dealer? Is your car covered if it breaks down on a trip or if you move out of town? Do you need prior authorization for repair work?

Common repairs for parts like brakes and clutches generally are not included in service contracts. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made. Failure to keep up manufacturer's recommendations for routine maintenance can void the service contract.

The contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself. You must ask yourself how long do you keep your cars. If your history shows that you keep a car on average 3-4 years then you are fine under the Factory Warranty.

You may purchase the Extended Service Plan any time up to the end Of the Factory warranty, but you must pay cash at that time. If you want to "Finance" at possibly lower rates you must do so at Time of purchase. Factory Warrantys(Ford, Chevy etc) are more $ than "After Market" but will cover you Nationally.

If you are buying a new car and only going to keep it for 3 years then no. But most people buy used then I say YES. Answer this question would you rather pay $1500 out of your pocket for 1 repair or a couple bucks every month and not have to.

Plus the work being done is by a mechanic that only works on those type of cars so it will more then likely done right. Also how many times have you brought your car somewhere and they found things wrong and you said ill do it later so then you drive around with a annoying problem which then leads to another problem. When you could've got it done for free.

Also most dealerships will give you a loaner car to drive while your car is being fixed! I was an underwriter for an extended warranty company for two years, and I would suggest never buying one. The car dealers who sold them left out valuable information and gave out lots of misinformation when selling them to customers.

Nine out of ten times, customers were calling to have them cancelled because they did not do what they were told they would do. They were 5 or 6 different types of warranties that fit depending on what type of vehicle you were buying, was it new or used and what the mileage is on the vehicle. The newer the vehicle the more money the dealer is going to get out of it, so regardless they sold the "new" one and when the customer went to use it they would find that there was not coverage for what they needed repaired.

If you take the amount of money you are paying into your payment every month that is for the warranty and put it into your savings account you would have the money set aside when something does happen, then you don't have to go through the hassle of waiting while the warranty company decides if it is covered while your vehicle sits in a shop waiting to be repared. I've been in the car business for 19 years. First as a mechanic, then in new and used car sales, and now for the last five years as a Fiance Manager in a new and used car dealership.

If you KNOW that you will not keep the car past the factory warranty, then don't buy the extended warranty. However, if you drive higher mileage, keep a car longer than the factory warranty, or if you're buying a used car, then an extended warranty is probably for you. Since most Americans live paycheck to paycheck, the idea of putting money away for mechanical breakdowns is unrealistic.

I deal specifically with people's credit and I see a lot of problem areas due to uncovered, and unaffordable mechanical breakdowns that could have been avoided with the purchase of an extended warranty. Make certain the warranty company you choose is nationally known and usually insured by an even larger mother company. Not all warranties, but definitely GAP insurance.

If you sell the vehicle before the extended warranty runs out you can request a prorated refund on the unused months! For a car... if and only if you know nothing about cars and have a lot of money. In general an extended warranty is nothing but pure profit for just about any business.

This is the reason employees make so much commission from selling extended warranties. It's best to buy an extended warranty. ALTERNATIVE POV Agree with the above for the most part, but disagree that it's a bad idea to buy an extended warranty.

I did extensive research on warranties and found that most people who experienced a repair during their coverage were very glad that they had an extended warranty, and recommended to others that they purchase one. Those who did not experience a repair did not. About 80% of extended warranty buyers experience a repair during their coverage.

So ... you have an 80% chance of being glad that you had one. Convinced me. Having said that, it does make sense to find out whether the company providing your coverage is legitimate and secure ... one of the best ways to do that is to ask about third-party certification and awards, from companies like BBB, or category specialists like Motor Trend or J D Power.

FURTHER CONSIDERATIONS Keep in mind that extended warranties are also routinely offered during the sale, or shortly after the sale of consumer goods other than automobiles. Many of the same considerations disccssed regarding auto extended warranties apply to warranties on consumer goods. Perhaps the biggest difference is that many of the vendors of consumer product extended warranties are separate companies than the manufacturer of the item.

So it is very important to know who or what you are dealing with (that is, a company such as Ford Motor Company will not be standing behind the extended warranty on your refrigerator). Understand that an extended warranty is essentially an insurance product, in the sense that the consumer is paying a premium at present for the promise of performance at a later time. Most states license and regulate legitimate extended warranty companies, including to ensure that they maintain sufficient levels of capital to sustain operations and to pay anticipated claims.

An extended warranty may be sold under a product name (for example, "Best Forever") but what is important is the identity of the entity that is financially responsible for the payment of warranty claims; it is that entity that has to be licensed. If an extended warranty is offered at the time that the product is sold, the store salesperson may not know all of these particulars. Do not be pushed into buying the warranty at that moment, as you will doubtless have the chance later to get one if you desire it.

In the meantime, do the necessary homework, including contacting the state insurance regulator to make sure that the warranty provider is licensed, the number and nature of the consumer complaints that may have been filed against it, and how they have been resolved.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.