Should You Buy an Extended Warranty?
Buying a new car can be an exhausting process. It takes hours, and some buyers make hasty decisions just to bring the process to a close. Even though the decisions are important and the implications can last for years, some buyers are not equipped to make an informed decision about add-ons at the end of a new car purchase.
It’s all fun at the start, looking around the showroom and taking a test drive, but hours later many buyers are overly eager to get out of there with their new car, so they end up saying yes to whatever is offered. Beware of dealer tactics to sell you extras you do not really need.
Hours after entering the showroom, if you are able to conclude a deal with the salesman, it feels like you are done, but it is far from over. The salesman will hand you over to a business manager or someone with a similar title (other than salesman), but in fact it is another salesman seeking to boost the dealership’s profit margin. …show more content…
Steer away from all third-party warranties that are not backed by the auto manufacturer. If a third-party warranty provider folds, the dealer and the manufacturer have no obligation to step in. Even warranties that are backed by the manufacturer offer dubious value. It works a lot like health insurance, except instead of your doctor and HMO provider, you will be making an insurance claim with your dealer and the warranty company every time you need repairs under the extended warranty.
Experts have concluded that the cost of extended warranty is usually greater than the amount of money saved on repairs. A better way to protect your vehicle investment is to attend to preventive maintenance according to the manufacturer’s recommendations (not the dealer’s schedule). It is surprising that many car buyers believe routine maintenance needs to be done at the dealership while the vehicle is still under the original warranty, but that is simply not
Buying a new car can be an exhausting process. It takes hours, and some buyers make hasty decisions just to bring the process to a close. Even though the decisions are important and the implications can last for years, some buyers are not equipped to make an informed decision about add-ons at the end of a new car purchase.
It’s all fun at the start, looking around the showroom and taking a test drive, but hours later many buyers are overly eager to get out of there with their new car, so they end up saying yes to whatever is offered. Beware of dealer tactics to sell you extras you do not really need.
Hours after entering the showroom, if you are able to conclude a deal with the salesman, it feels like you are done, but it is far from over. The salesman will hand you over to a business manager or someone with a similar title (other than salesman), but in fact it is another salesman seeking to boost the dealership’s profit margin. …show more content…
Steer away from all third-party warranties that are not backed by the auto manufacturer. If a third-party warranty provider folds, the dealer and the manufacturer have no obligation to step in. Even warranties that are backed by the manufacturer offer dubious value. It works a lot like health insurance, except instead of your doctor and HMO provider, you will be making an insurance claim with your dealer and the warranty company every time you need repairs under the extended warranty.
Experts have concluded that the cost of extended warranty is usually greater than the amount of money saved on repairs. A better way to protect your vehicle investment is to attend to preventive maintenance according to the manufacturer’s recommendations (not the dealer’s schedule). It is surprising that many car buyers believe routine maintenance needs to be done at the dealership while the vehicle is still under the original warranty, but that is simply not