Extended Warranty Facts

Having the facts on extended warranty will put anyone in a better position to decide whether to buy or not to buy it. Knowing the facts is the best way to assess risks and cost involved and to make a more informed decision.

Facts
Vehicle manufacturers provide their own free basic warranty on their product also known as "bumper to bumper" warranty with zero deductible. In most cases the basic warranty will cover the entire vehicle with few exceptions such as normal wear-n-tear and maintenance items.

Basic warranties offered by different manufacturers will vary in time and mileage. However, the 3 years and 36,000 miles basic warranty has been the most common lately.

Basic warranty, in most cases, includes Roadside Assistance free of charge, which consists of:

• Towing to the nearest dealership
• Lock outs
• Winch outs
• Fuel delivery
• Flat repairs (spare tire exchange)

Keep in mind that there are several components on the vehicle that will carry a much longer warranty than the basic. For example, some American Vehicles will provide a 7 years or 100,000 miles on the power train.

What's the power train? It is what moves the vehicle, and it includes:
• Engine and all engine components
• Transmission and all transmission components
• Differential or transaxle and all of their components

Other components covered longer than basic warranty are:
• The emission system and its components
• Safety restraining system and components
• Corrosion on frame, metals and paint, etc.

The warranty booklet that comes with the vehicle usually has this information on the first couple of pages. Learn the facts and be prepared to make the best decision.

Here are other factors to consider:
o Some extended warranties can cost thousands of dollars.
o More often than not, extended warranty will overlap with the basic warranty.
o Extended warranty usually carries a deductible.
o In most cases, the cost for extended warranty is much higher than a fairly large repair.
o Now-a-days the quality of the American Vehicles is much better that it used to be.

Consider these questions:
• Does the driver have a lead foot?
• How rough are the driver's driving habits?
• How many people drive the vehicle?
• Will the chances of needing a large repair offset the price of extended warranty?
Do not forget to ask the warranty sales person for terms, conditions and deductibles. Once this information is available it can be determined how much both, basic and extended, warranties will overlap.
Extended warranty may not always the best choice.

View the original article here