5 Extended Warranty Mistakes You Need to Avoid
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Worried about making extended warranty mistakes? Here are some five you need to avoid!
With the right plan and coverage, an extended warranty is a great way to protect your vehicle and bring you peace of mind. An extended warranty can provide coverage that will lessen the burden on you financially as your care for your car and keep it long lasting.
However, there are many pitfalls to avoid when shopping for and evaluating extended warranties. Listed below are 5 extended warranty mistakes that car owners need to avoid.
Buying A Warranty Without Proper Research
Purchasing a car is a long and often dragged-out process. Due to this many car buyers want to get the process over with and skip through less “important” parts. It is not uncommon for car shoppers to choose the first warranty plan offered to them with little to no research or inquiry in a rush to complete the process.
There are some key features that you need to keep in mind when shopping for an extended warranty. Like knowing that most offers are not set in stone and can be countered by the shopper. Or realizing that everything that comes out of the car dealer or warranty provider’s mouth is not fact and they often lie in their favor to get the best deal for them. You need to be patient and do the proper research, even if it takes extra time so you make sure you are not being taken advantage of and put into a bad agreement.
Choosing the Wrong Warranty
Make sure you know what each warranty entails and provides in detail so you do not purchase the wrong one when you buy or sell a car. You don’t want to buy an extended warranty and then when you need your coverage to kick in you find out that you actually do not have the proper coverage to take care of your car’s needs.
When purchasing and shopping for an extended warranty you will need to know what is covered in each warranty and know what the coverage entails. So when a warranty lists wear and tear as covered, you will need to research and dive into the plan to see what qualifies as wear and tear as well as other terms like mechanical failure and more.
Choosing a Plan Based On Price Alone
There are many extended warranty options that are separated by price and coverage type. Often many people will choose the cheaper warranty option so they can save money, then later find out that they did not get a good deal or actually have lost money in their agreement. It’s one of the most common extended warranty mistakes.
Or they will find out that the cheapest monthly plan lasts for a long time and will be more expensive than plans with higher monthly payments but are finished in two years. Price is important but it can be deceiving, so don’t ignore it but don’t let it sway you into a bad deal either.
Neglecting Pre-Existing Issues
If your car has broken or faulty parts then these need to be fixed and taken care of before you get your warranty. Any broken or damaged parts that were not fixed before an extended warranty goes in effect will not be covered once the warranty plan becomes active.
Many people think getting an extended warranty is like receiving a magic wand that will fix all of their preexisting issues along with future coverage. This is not true. Before you buy your extended warranty make sure you get your vehicle inspected and fix any broken or damaged items. They will not be covered in your new warranty.
Getting Scammed Into Purchasing a Bad Warranty
There are countless business practices and operations in all industries’ that are nefarious, and extended warranties are no different. If you fall for a scam, the extended warranty mistakes will haunt your credit for a long time.
Many car shoppers, especially those with bad credit, are tricked illegally into buying poor extended warranties by car dealers who operate in bad faith. To protect against this, warranty shoppers need to do research into each deal and offers made to them and remember that not everything that a car dealer says is true. Proper research and discernment can help protect against fraud and getting taken advantage of.