NEW CAR EXTENDED WARRANTY? NO!

Extended warranties on new cars are funny things. After a dealer tries to convince us on the quality and dependability of the new car they are selling us, they then try to sell us a warranty because they’re not that reliable. Mmmmmm, kinda makes you think!

Basically extended warranties are not good deals. Why? First and foremost they are NOT extended, as represented. Here’s why …

Let’s say you buy a new car with a factory warranty of 3-years or 36,000 miles. Then the dealer sells you an 5-year extended warranty. Is it really a 5-year warranty? NOT AT ALL! You see, the extended warranty does NOT cover ONE THING in addition to the factory warranty. In other words, in this case, the extended warranty does NOTHING for the first 3-years (or 36,000). It just sits there. So, they are really selling you a 2-year extension on your 3-year factory warranty. IT IS NOT AS REPRESENTED!

There is another big glaring problem with the entire idea of an extended warranty: They are sold to make money. That, in itself, is not evil, but if you think about it, dealers and manufacturers only sell them because they know it is a profit center, meaning they have figured out statistically that the odds are against you actually needing or using it!

CONSUMER TIP: When you buy a new car, take advantage of the new car warranty. Save the extra money that you’d spend on an extended warranty. Then toward the end of the factory warranty, shop for a true extended warranty that starts when the factory warranty ends. In most cases, the manufacturer and other independent companies will solicit you at that time, offering all kinds of deals. Find one at that time! And here’s the best part, you’ll have previous warranty, maintenance and repair records to use should the warranty company try to challenge a claim based on “pre-existing conditions” or “owner abuse”.