Wednesday, September 26, 2012

Avoid Hidden Fees When Buying a Car Warranty

If you plan on buying a car anytime soon, you will also need an auto warranty to go with it. There are plenty of companies out there that are looking to cash in on your lack of knowledge concerning the auto warranty world. You may spend thousands of dollars on one of these plans but then end up spending thousands more because you were not covered correctly.

To avoid being overcharged, make sure that you read every contract carefully and don’t sign anything unless you are sure it is what you need.
Here are some helpful tips to get you started.
1. Extended Warranty. What most people don’t understand is that you don’t have to purchase one of these warranties at the dealership. In fact, they're often cheaper from an outside vendor! If you think that you will own your vehicle past the original warranty expiration date, an extended warranty is probably right for you. Just be sure you get one that works for you and isn't pressured onto you.

2. Deductibles. Almost every warranty will have a deductible so that means you want to ask if you will have one per repair or per visit. The best warranties have one that will charge you per incident but make sure you are a safe driver because if you aren’t, this one will do you no good!

3. Terms and Conditions. Always read the fine print. Companies will throw in a lot of legalities and it will end up costing you plenty if you don’t read it.

4. Hidden Charges. A car warranty will usually allow for a replacement vehicle but you should make sure of that before signing on the dotted line. Sometimes a fee is associated with this perk.

5. Claims. Try to find a claim service that will pay for the repairs up front. You never want to be stuck with the bill and then have to scramble to be reimbursed.

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