|
 Buying
an Extended Warranty Online
One of the biggest profit items at a traditional dealer are extended
warranty sales. Mark-ups of 100% and more are not uncommon. By buying a warranty direct online, you can eliminate
the middleman and their profit--and save yourself up to 60%.
An extended warranty is essentially an insurance policy (the warranty company is betting that you will not need
a repair and you are betting that you are) and should be approached in that light. If the car you are buying (or
currently own) has an excellent record of reliablility (Consumer Reports New Car Buying Guide
is the best resource for this information) you probably will have less need for an extended warranty. If the vehicle
has an average (or worse than average) reliablity record, the odds of taking advantage of an extended warranty
obviously increase.
|
Online Car
Warranty
Resources
|
|
 Warranty Direct is an example of such an online seller of extended warranties. They are a wholly
owned subsidiary of National Dealer Services, which has sold and administered over 1,000,000 warranties and been
in business for over 20 years. |
|
Extended Warranty Hints and Tips
  Spend time examining exactly what coverage is available.
There is a wide range among different plans and this will avoid a nasty--and expensive-- surprise later if you
find out that a repair is not covered.
Watch
the amount of the deductible. These can vary and if the deductible
is too high it can chip away at your service repair savings, decreasing the value of the warranty.
Check
to see if a warranty you are considering includes roadside assistance.
Some do, while others only cover mechanical breakdown repairs (making you responsible for getting the vehicle to
the service facility).
Is
coverage available at a wide range of service facilities? This
is important if you travel and find yourself needing repairs a long distance from your home. Some extended warranties
only offer service at a limited number of repair shops.
|
