Car Warranties, BUYER BEWARE

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Buyers Beware is some really good advice. If you don't want to get ripped off buying an extended vehicle warranty. Not every warranty is the same, so read on and learn what to look for before you sign on the purchase one.

Some vehicle warranties are brilliant, and some are not. But its up to you, as the buyer, to make sure the warranty you are signing is the right one.

Car buyers, buy car warranties for various reasons, including a desire for car coverage, pressure from the car dealership, or lies told to convince them that extended cover is mandatory.

While car warranties are important and can offer protection when needed, many available warranties are unnecessary.

Some include long lists of exclusions that may not be obvious, others provide cover only during specific periods of time or for a set number of miles, and still others may provide little or no protection at all for the vehicle being bought. Customers often fail to fully read their contract or pay attention to the fine print it contains. Many are unable to understand their coverage options and exclusions, and either decide not to ask for an explanation, or are not given a proper one at the car dealership.

These issues can lead to wrongful claims with the underwriter, as well as significant and unexpected costs in the event that the vehicle becomes damaged or needs work.

It is criticall for all car buyers to read and understand every aspect of all warranties. It is also important to remember that car dealers are often given incentives to pressure customers into buying unnecessary or overpriced warranties. Some warranties are worth the extra money, but others are not worth the paper they are written on. Below is an overview of various car warranty types and the protection they offer.

Basic Warranty:

A basic warranty, or "bumper-to-bumper" warranty, provides cover for everything on the vehicle, except for wear-and-tear items such as brakes, tyres, oil filters, and wiper blades. Most manufactures offer protection for a minimum of three years and 36,000 miles - whichever comes first. Basic warranties are fairly standard, but customers should still read over every aspect of the warranty before signing.

Powertrain Warranty:

This type of warranty, covers all the major vehicle components, such as the engine, gearbox, and drive shaft. The powertrain does not cover general wear-and-tear items, hoses, or belts, but focuses on internal engine parts only. Most manufacturers offer a minimum of three years or 36,000 miles of cover, but increasing numbers of car makers are extending their powertrain warranties to provide coverage for as long as ten years and 100,000 miles. As with the basic warranty, it is essential to carefully read the fine print included in the powertrain warranty, and make note of any hidden exclusions or other areas of concern.

Extended Warranty:

Some car dealers try to force extended warranties on customers, and some even claim they are required in order to receive financing for an car loan. Extended warranties are usually very expensive and completely unnecessary. However, if the vehicle will be kept longer than the period of time the basic warranty provides coverage for, an extended warranty may pay for itself over time. Eventually, even the best cars will need repair work done, and those costs can quickly add up. It is typically better to buy the warranty directly from the insurer, and not from the car dealer when purchasing a car.

Before an extended warranty is bought, several questions should be asked about the policy and coverage. If the warranty is being bought at the dealership, it is important to determine if the plan can be used elsewhere, or if repairs must be done at that specific car dealership. Does the warranty cover the cost of repairs upfront, or will there be a need to pay out-of-pocket and wait for a cheque from the insurer? Is a vehicle inspection required before any repairs are made? Also, customers should ask their insurer if they offer a buy-back clause that allows a sum of money to be returned if the vehicle is sold before the warranty runs out.buying an extended warranty should be done carefully.

Rust and Corrosion Warranty:

This type of warranty protects against body damage caused by rust or corrosion. Unfortunately, these warranties typically do not cover surface rust. This means that the problem must be long-term and severe before the warranty kicks in. If a customer is interested in repairing the problem before this point, or wishes to take preventative measures to protect their car against this type of damage, a rust and corrosion warranty will not provide cover.

Roadside Assistance:

While this type of coverage comes in handy, it is also provided with many car insurance policies. Having both forms of protection does not necessarily mean better coverage. Before agreeing to pay for this type of warranty, a call should be made to confirm if the car insurance policy also offer this protection.

Finally

Extended and additional warranties can provide a car buyer with peace-of-mind, but often the coverage they offer is not worth the cost. Customers should take an active role in their car buying experience, ask questions, and demand complete answers. Just like a new car, warranties should be researched before they are bought.

Article Source: http://depositarticles.com/

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