| If you are in the market for a used car, you | | | | warranty that does not cover wear and tear. |
| need to be in another market at the same | | | | Is the warranty company reputable? If you can |
| time-the market for a used car warranty. You | | | | not get information about the company from the |
| need to shop for both. And if you're not careful, | | | | Better Business Bureau or Web Assured, avoid |
| you can end up costing yourself hundreds or | | | | them like the plague. |
| thousands of dollars on a bad extended warranty. | | | | You will find that many companies offering cheap |
| When you are shopping, remember what an | | | | extended warranties with low teaser rates reject |
| extended warranty is. It is essentially a service | | | | most (or even all) claims. That's the way they |
| contract that covers things after the new car | | | | make money on such a cheap product. They |
| warranty (the factory warranty) ends. You will | | | | might not answer their phones. They might not |
| not get all of the new car coverage, even in a | | | | send you a contract to review before you agree |
| great extended warranty, so don't let that bother | | | | to the warranty. These are all bad signs. |
| you. But be smart about what you do get. Here | | | | Will the warranty pay the repair shop directly? If |
| are some questions to ask. | | | | they make you pay first, they can quibble about |
| Do you really need an extended warranty? You | | | | reimbursing you. This is one of the biggest scam |
| might not if there is a big portion of the original | | | | tactics out there. You should pick a warranty that |
| warranty left. If the warranty transfers to a new | | | | will pay the repair shop directly and not force you |
| buyer, you might be covered as much as you | | | | to shell out your own money and hope for |
| need or want. Saving the money you would have | | | | reimbursement. |
| spent on an extended warranty might be a smart | | | | Can you get repairs at any ASE certified shop? |
| option. | | | | You don't want a warranty that forces you get |
| What is covered by an extended warranty you're | | | | service where you bought the warranty, or that |
| considering? This is an extremely important | | | | restricts you to a few repair shops in the greater |
| question to answer. Many people shop for an | | | | Newark area (although that might be convenient if |
| extended warranty like they shop for gas-they | | | | you live in New Jersey). You want a warranty |
| buy the cheapest they can find. That is often a | | | | that will let you get your service at any shop |
| big mistake. In the world of extended warranties, | | | | certified by the National Institute for Automotive |
| you often get what you pay for. | | | | Service Excellence (ASE). That gives you the |
| What you want is a warranty that covers | | | | flexibility to have 400,000 professionals to choose |
| mechanical breakdown and "wear and tear." Wear | | | | from. |
| and tear refers to items that tend to wear out | | | | Used car warranties can be a great way to |
| and degrade the performance of your car. That | | | | protect your purchase, if you know what to look |
| means things like worn rings, shot pistons, | | | | for. If you answer these five key questions, you |
| overheating damage, leaks, etc. Stuff in your car | | | | will be able to protect yourself as much as you |
| tends to wear out, not fail, so do not settle for a | | | | are trying to protect your car. |