Choosing A Warranty Plan
If you were to buy a new car, then you’ll automatically be entitled to the manufacturer’s warranty plan, which covers free repairs and reinstallation of all covered parts that may have failed due to flawed equipment. In most states, the “lemon law” legislation offers consumers a replacement or a refund if the car can’t be repaired after a certain number of attempts. If you’re buying a used car, then you’ll have many more extended warranty plans to consider. If your car is over 60,000 miles, then you may have a tough time finding a warranty company at all.
You may be wondering, “Do I need to purchase a warranty plan, or will I be covered by my car manufacturer’s warranty?” In some cases, people have purchased two-year extended warranty coverage only to find that they had already been covered just fine by their manufacturer. According to the consumer site CarSmart.com, the best coverage is on high-end luxury sports cars, like Aston Martins, Lamborghinis, Ferraris and Rolls-Royces, which are covered until 999,999 miles.
At the next tier, you’re covered for five years (or 60,000 miles) if you drive a Mitsubishi, Kia, Infiniti or Hyundai. You’re covered four years (or 50,000) miles if you have an Acura, Audi, BMW, Buick, Cadillac, Hummer, Isuzu, Jaguar, Land Rover, Lexus, Lincoln, Maserati, Mazda, Mercedes, Mini, Porsche, Saab, Volkswagon or Volvo.
You may want to consider purchasing an additional warranty if you’re rough on your mid-range vehicle or if you buy a lower range vehicle from Chevrolet, Chrysler, Dodge, Saturn, GMC, Honda, Jeep, Ford, Mercury, Nissan, Pontiac, Suzuki, Scion or Subaru (whose manufacturer warranties only cover 3 years or 36,000 miles.) If you drive a 2008 or later GM model, then you’ll be covered for 100,000 miles or five years.
Sometimes when you purchase an automobile, you receive an “in-house” warranty plan. This means that you’re entitled to some free maintenance and repairs, but only if you come back to the dealership to have the work done. Coverage varies significantly, but should cover major components like the engine, transmission, axles and drive train. It’s a good idea to have the salesperson list what is and isn’t covered for you before you purchase the extended warranty coverage. Sometimes dealers call their plans the “50/50 warranty,” which means the dealer garage charges for parts and labor, then you pay 50% of the total invoice and the garage covers the other half. 50/50 warranties are considered to be a fair deal and the “in house” plans sometimes throw in routine oil changes as an added incentive, which may be a good deal if you live close by.
Before you choose a warranty plan, sit down and honestly think out your long and short term strategies. How are you planning to save for routine maintenance and car repairs? How long will it take you to pay off your loan? After paying their lender off, some people continue to set that money aside in a general fund to save for repairs. Others invest in a bank CD or a money market investment account to save over the long term. Or it may be in your advantage to buy the extended warranty coverage. Common breakdowns include: four-wheel drive differential and transfer case (with an average repair cost of $1,100), the air conditioner and heater system ($700), the brake system ($350), the cooling system ($465), drive axles and differentials ($500-$1,000), electrical systems ($800), engine failure ($2,000), fuel system ($500) and steering system ($600). Do your homework and see what problems are most commonly associated with your particular make and model, then devise a reasonable plan.
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Tagged With auto extended warranties, automobile warranty, extended warranty coverage, extended warranty plans, new car warranties, used car warranty, warranty company, warranty plan
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