“Just sign on the line and we’ll get you in a brand new vehicle”, this is a line I am sure every car owner has heard in his/her life. You have spent hours at a dealership, and all you want is to drive home in your new car. Then they start to worry you about all the potential costs that could come up if you don’t have an extended warranty. As a potential service contract, they can be beneficial if not purely for that peace of mind feeling.
Here are 5 questions you should ask before signing on the dotted line:
Who will cover the expenses?
Most dealerships work with an out side third-party company to offer you this extended coverage. So though you might think you can just drive back into the dealership when you need a repair that might not be the case. Be sure to ask details about the company covering your car, and ask to be provided additional information and the repair process, or don’t sign. The dealership doesn’t car if you buy the warranty, in the end they want the sale more than adding a few thousand dollars that they get a small piece of.
Has the dealership searched for the best possible coverage/price?
The company selling you the vehicle might have a partnership with the company carrying your additional coverage, but you by no means have to go with that specific company. The dealership cannot force you to go with one specific company to cover your vehicle. So if they haven’t shopped around for you, then don’t sign or go and get yourself coverage outside of the one they are suggesting, there are plenty to choose from.
Are your biggest worries even covered?
Just like there are multiple companies writing these policies, each one is going to cover different things. If you are worried about the drive train, or specific issues be sure they go over the specifics of your coverage before you buy.
What is your own experience with vehicle repairs?
If you feel like the same thing is constantly happening to you, like flat tires, then there might be specific coverage for your situation. just like in question number two only you know what your experience has been with your mechanic. You will never have the exact same history with two different vehicles, but your environment might dictate some similar circumstances.
Lastly, Do you even need this additional coverage?
Those dealerships can really try to scare you into getting that coverage costing you thousands that you might not want to spend. According to a recent J.D. Power Study, the dependability of vehicles is always on the rise, improving year after year.
Even if after reading this you still think this type of coverage is right for you take peace of mind knowing that Cancel My Warranty can provide you with a plan to cancel your warranty and recover some of your assets at the end. because the last thing these companies want you knowing is that money just like a life insurance policy is yours and you deserve to get it back.