EXTENDED WARRANTIES

II

     Some extended warranties are Great and some are not worth the paper they are written on.  How do you know which is which???

Which Warranty is the RIGHT warranty

     Used car "warranties" actually work more like health insurance policies  They are designed to pay a portion of the repair cost after a deductible is met.  Like health insurance none will cover a "pre-existing condition".  There are a variety of options available to cover used cars, from basic powertrain coverage to nearly "bumper to bumper" coverage.  All are available at a wide range of prices and some are better than others.  Most dealers sell cars "As Is" meaning no warranty at all. and if there is a warranty "included" it is for very limited conditions/time.  The terms and conditions will vary from policy to policy, but in general expect to pay more money for more coverage.  You can purchase these policies from a number of places.  If the used car meets certain age and mileage restrictions you can even get the Manufacturers own extended warranty, possibly the best option.  Warranties are also available from many insurance companies and usually offer good value.  Third party warranties are the riskiest.  Some are offered by larege dealers and tend to be OK while others only separate you from your money and offer no protection at all.

     The Finance Manager is the person usually selling this product at the dealership.  Feel free to ask pleanty of questions about the product before you agree to buy, remember it is your money.  The attraction to getting the warranty from the dealer is that the cost of the warranty is "rolled" into the financing, just remember you are paying interest on this.