NEGOTIATE THE PRICE OF EXTENDED WARRANTIES
Is a warranty included with the vehicle?  Do you need an extended warranty?  Should you purchase
the extended warranty now or when the current warranty expires?

Although you should carefully review the sales brochure outlining what the warranty covers and
doesn’t cover, you should read the actual warranty “contract” before purchasing.  Although this may
be tedious, your warranty is an expensive purchase.  Look specifically for limitations and exclusions.  
Are pre-existing conditions excluded?

Are you getting the coverage you want?
What is the likelihood of an unexpected repair (that would be covered)?
How much is the deductible?
Would you be better off putting the cost of an extended warranty in a separate savings
account to cover unexpected repairs?  (This requires discipline, there is an element
of risk, but the benefits can be substantial.)

Before selecting a warranty, find out who will be the administrator and who will be providing the
coverage.  If the administrator and the coverage provider are not easy to identify, this could be a
problem.  Get the name and address of each company.  Check out both through your State’s
Consumer Affairs office.  How long have each been in the warranty business?  What is their record
regarding complaints and disputes?

You may be more comfortable purchasing a warranty provided by the auto manufacturer rather than
a warranty offered by an unfamiliar third party.

If an extended warranty is important to you, you should consider shopping for a warranty before you
visit the Dealership.  Letting the Dealership know you are considering alternatives may result in a
discount.

                                        Homework, Shop, Homework, Buy!


                                                           Next:  Negotiate the Cost of a Car Loan


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