What To Look Out For, And What To Avoid, When Choosing A Car Dealer Warranty

Simply put, a car dealer warranty offers an extension of the manufacturer's warranty. Being offered at the time the vehicle is bought, or at some future time this warranty is part of an after sales package. Before you rush in to this kind of deal, there are a few factors to consider. The first of these will only be relevant if you have not yet bought your vehicle. The amount of warranty on offer at the start of the vehicle's lifespan can vary considerably. In theory, everything should balance out, with vehicles offering only the bare minimum one year warranty being cheaper as a result.

In practice, this rarely happens, as there is a perception amongst vehicle buyers that if a one year warranty is offered, the manufacturer cannot have the confidence in the model that a manufacturer offering a three or even a five year warranty will have. The five year warranties are especially interesting, as they are a relatively recent innovation. You would expect that any manufacturer prepared to back their product with such a warranty must be confident as to its reliability, and you would be right. Statistics show that these models enjoy some of the best reliability rates of any vehicles on the market, and this is far from lost on the buying public.

If you are thinking of buying a car, this is certainly good news. The five year warranty will give you a peace of mind unknown to people only a few years ago, and without there being any real increase in expense. If you are not starting out, or if you have another reason for wanting to buy a vehicle with a shorter initial guarantee, then you can look at a dealer extended warranty. This should be offered to you at the time you buy the vehicle, although it can often be offered later as well, as part of an after sales package.

There are many who decry these warranties, claiming they are nothing more than pure profit for the affiliated dealer. At the same time, there are many who have had extensive repairs carried out, who are perfectly happy with the way the coverage has protected them. Certainly, unless you are prepared to underwrite some potentially very expensive repairs yourself, you will need some insurance of some kind. Although covering every eventuality will probably prove to be too expensive, you can do your research into which parts are most likely to give trouble, and insure these accordingly.

Sadly, the vehicle insurance industry has its dark side, and dealer services warranty companies are not above making nuisance telemarketing calls in direct violation of the law in order to pressure sell to unsuspecting victims. This is despite the fact that anyone who registers for a do not call list is supposed to be left alone. The very fact that a company is prepared to violate these laws should leave you in no doubt as to the likely quality of the products on offer. Whatever you do, don't give money to these disreputable companies, who will just use it to prey on further victims. There is a good argument for sticking with an established car dealer warranty.

 

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