Used Auto Warranty Warning: Beware Dealer-Issued Extended Auto Warranty Coverage

Buying a used car? You need an extended auto warranty to protect you from expensive surprises down the road. But be careful when your dealer tries to sell you used auto extended warranty coverage. Usually, the dealer is simply reselling used auto warranties issued by a used auto warranty company, with a markup of up to $1000. You could just as easily have bought the extended warranty directly from the auto warranty company.

But overpaying for a third-party used car extended auto warranty is certainly not the worst used auto warranty deal you can get. The worst auto extended warranty deal is to buy one that isn't issued by a third party at all.

Dealer-Issued Extended Auto Warranties Explained

• What happens if you move far away? Answer: you'd have to buy another auto warranty.



• What if you're driving somewhere far away when your car breaks down? Answer: if the used auto warranty doesn't cover reimbursements for emergency service, you're in trouble. Even if it does cover reimbursements, you'd better hope your credit card or checking account can handle the damage in the meantime.



• What if the dealership goes bankrupt? Answer: get in line behind the banks, the car manufacturer, the dealership's vendors, and everyone else trying to get money out of the business.



• What if you just aren't satisfied with the dealer's work? Answer: complain very, very nicely. You can't take your business elsewhere unless you're willing to pay for it.

Dealer-Issued Used Auto Warranties: Why Does Anyone Buy Them?

• Most often, the buyer simply never thought about an extended auto warranty before going to the dealership. When the salesperson explains how important extended auto warranty coverage is, the buyer just thanks him for the tip and buys it.



• The buyer doesn't realize how expensive the warranty is. Of course, car repairs can potentially be so expensive that even an overpriced dealer-issued warranty can pay for itself several times over. Meanwhile, next to a $15,000 car, even an overpriced $2500 dealer-issued warranty seems cheap. But if you're going to buy a warranty, why not buy a really good one?



• Many buyers mistake dealer-issued warranties for manufacturers' warranties. In some cases, the salesperson may even try to let you think the warranty will cover repairs at any of the dealerships affiliated with that manufacturer (say, any Chrysler or Mitsubishi dealership). Of course, such warranties do exist, but they're more common for new cars than used cars.

Article Source: http://www.content-corral.com

Joel Walsh, a freelance automotive writer recommends Auto Service Warranty, Inc. where you can get an automobile extended warranty quote online in seconds: www.AutoServiceWarranty.com/

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