Wednesday, August 8, 2012

Is It True? The Fact and Fiction of Auto Warranty Coverage

Auto warranties can prove to be perplexing, and understandably so. There are in fact some mistaken beliefs about this type of coverage. Therefore, we should clear up a few of those.

First of all, it has been told that buying an extended car warranty can only be done from the car dealership. This is just not true.
An auto salesman will want to push this misconception to encourage you to add this sale to that of your car. The reasoning is that the car salesman makes a commission by acting as the middleman in the warranty transaction. Buying auto warranty insurance from a direct source will save you money.

Another myth in car warranties is that purchasing an extended warranty ahead of the time when your manufacturer’s warranty ends will allow you double coverage. It is not true. The double coverage will not take place. In purchasing auto warranty insurance, you will prolong the life of warranty coverage. It is imperative to transact the extended warranty purchase before the expiration of the original warranty.

Often, people are misled to believe that they have to buy an extended auto warranty to improve their chance of financing qualification. This is untrue. Approval of financing can only occur based on a person’s credit history, according to laws. If you want financing, this can still occur when you purchase from the source. The majority of extended auto warranty providers can set up clients with interest free finance options.

Finally, there is the myth that the manufacturer covers a car and an extended warranty is not needed. Generally, one major automotive repair costs an owner more than an extended warranty. Even though the manufacturer might cover the cost of parts, labor costs probably are not covered.

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