The consumer guide to uncovering the best value
in auto warranties and repairs.
Auto Warranty Scams ...
Fake Auto Warranty Expert Web Sites
Some warranty companies and brokers use a very deceptive marketing practice by creating an “Expert” auto warranty website to give advice on purchasing warranties. You may be lead to believe that this is an independent source but these sites are actually owned by the company or broker and will only recommend you buy from them.
If the site only recommends or reviews one auto warranty company, click somewhere else. This is another gimmick from a company you don’t want to be doing business with.
Big Discounts – But You Must Act Now
Many warranty companies and brokers use the “big discount ends tomorrow” or “we have warranty company discount coupons only good until Friday”. These are only gimmicks to get you to make a purchase decision immediately. There is no need to make a rushed decision. Avoid companies that use these high pressure sales tactics.
The insider’s tip is there are only two times when you need to act. The first is the end of the year. On January 1st your vehicle will be considered one year older and will cost more to cover. The second is when the manufacturer’s warranty is about to expire. Extended warranty coverage is always cheaper if you are still covered by the manufacturer’s policy.
Zero Interest Financing
Most warranty brokers and companies offer zero percent interest financing on their warranties and most are true zero percent interest. However, some companies are actually burying the financing costs into the price of the warranty.
For example, the company will sell you a 36 month 36,000 mile for $1,500 financed, but will sell you the exact same warranty for $1,325 if you pay in cash. They are actually building $175 in finance charges into the selling price and you are in reality paying a finance fee. Don’t buy from someone who advertises interest free financing then charges one price for cash and another for financing.
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