Are extended warranties for you?
Posted on Friday, May 25, 2012 at 3:19:37 PM
Buying a vehicle is an investment. It is not an everyday purchase, but a car is responsible for you getting to work, carting the kids to school and fulfilling our obligations. Therefore, before signing on the dotted line for auto financing, you may want to determine if an extended warranty is a good investment.
"The benefits of an extended warranty protect the consumer from unforeseen expenses of covered items and costs associated with the purchased warranty. Consumers need to read and understand the specifics of what is covered and not covered before entering into a warranty agreement. Consumers should ask for a copy of the warranty so they can make an educated decision of what level of a warranty is desirable before purchase. The term "bumper to bumper" is a very general term. This term can leave consumers very disappointed when the cost of a repair or replacement is suddenly is their financial responsibility. A better term is “exclusion of coverage." This term lists what is not covered only, so if it is not on the list the expense is covered," said auto financing expert Christine Dikdan.
Consumers should consider investing in an extended warranty for their upcoming vehicle purchase to avoid potential hassles in the future. Understanding the terms is an integral part of this decision. Educate yourself on the pros and cons of the warranty being offered to you before buying.