Should I Buy an Extended Auto Warranty From The Dealership?
April 24th, 2008
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.
Entry Filed under: Vehicle warranties
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