Here’s something funny about extended warranties on new cars.
First the dealer sells you on how reliable and dependable the car is. Then they try to sell you a warranty, because it’s apparently not that reliable.
Kinda makes you think!
It’s not really “extended”
Say your new car comes with a 3-year or 36,000-mile factory warranty, and the dealer sells you a 5-year extended warranty.
Is that really 5 years of coverage? Not at all.
The extended warranty doesn’t cover one single thing on top of the factory warranty. For the first 3 years or 36,000 miles, it does nothing. It just sits there.
So what they’re really selling you is a 2-year extension. That is not how it’s represented.
They’re sold to make money
That’s not evil by itself. But dealers and manufacturers sell these because they’re a profit center. They’ve figured out statistically that the odds are against you ever needing it.
What to do instead
- Use the factory warranty you already have.
- Save the money you’d have spent on the extended warranty.
- Near the end of the factory warranty, shop for a true extended warranty that starts when the factory coverage ends. The manufacturer and independent companies will likely be soliciting you with all kinds of deals by then.
Best part: by then you’ll have your warranty, maintenance and repair records. If the warranty company tries to deny a claim for “pre-existing conditions” or “owner abuse,” you’ve got proof.
Got a consumer problem? Call 303-MARTINO or get free help at tommartino.com/get-help/