Posts filed under 'Vehicle warranties'

Should I Buy an Extended Auto Warranty From The Dealership?

Reader question Should I buy an extended auto warranty contract from the dealership or from the Internet…or where ever?

Donna,

Houston, TX

Dealerships act as the middleman between the consumer and the insurance company that backs the extended warranty, purchasing a policy from a warranty company and then turning around and selling the policy at a tremendous markup.

On average, dealerships markup the retail cost of warranties 25 – 80 percent. Dealers falsely refer to these Named Component car warranties as “bumper to bumper”, then name components covered. These auto warranties are ok, but leave out parts.

Add comment April 24th, 2008

Roadside Assistance Auto Warranty Contract?

Reader Question I am assuming an extended auto warranty contract is like having road side assistance? When my car breaks down they come and tow me to the repair shop and repair the problem…under warranty?

Glenn,

Denver CO

 

Roadside assistance often covers the cost of a tow truck and sometimes even the cost of a rental car to use while your vehicle is repaired. And anyone who has dealt with a breakdown while traveling can tell you that this is a very valuable service indeed! Roadside assistance is fairly common with all these warranty programs. Mechanical Breakdown warranties are what most auto dealers sell, but you want a “wear and tear” auto warranty that will cover much more.

Add comment April 24th, 2008


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