Navigating The Extended Auto Warranty Business

Navigating The Extended Auto Warranty Business
Navigating The Extended Auto Warranty Business
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Dealers to the left of you, plans to the right of you, questions ahead of you and information all around you – that is the landscape of the extended auto warranty business! But it is all good because it allows you:

  • Freedom of choice.
  • To tap into a large number of sources of information.
  • To get multiple price quotes from multiple dealers.
  • To choose a plan that is right for your pocket and car.

Steer to the right dealer

There are many dealers out there who will promise you plenty of things when it comes to a warranty plan. You can do your homework before approaching any dealer by:

  • Reading the information on his website – is it an accredited business? Does it have customer testimonials?
  • Finding out more on social media sites. The information here is, in most cases, unbiased and written by actual users!
  • Asking for a price quote for a plan.

This will give you enough information to take the decision of meeting with the representatives of a dealer and taking your discussions further. The right dealer will also not pressure you into buying a plan.

Drive to the right plan

There are quite a few options out there when it comes to an extended auto warranty coverage. Broadly speaking, you can choose between:

  • Inclusionary policies.
  • Exclusionary policies.
  • Power Train coverage.

An inclusionary policy will be akin to a stated component coverage and will specify in great detail as to the components it covers. An exclusionary policy is more comprehensive and therefore will list out the components excluded by the warranty plan. This is also known as a bumper to bumper coverage and will be pretty extensive in the benefits it gives you. A Power Train plan will cover the drive train components such as engine, transmission and so on.

Auto Warranty Business

Questions ahead – answers too!

There are a few important questions you should ask before choosing a plan. Some of these are:

  • What is repair history of your car? The answer will help you choose the right kind of plan. If you have had most problems with the engine then a Power Train plan will help.
  • How long do you plan on keeping your vehicle? If your ownership of the vehicle exceeds the original warranties then you will certainly benefit from an extended warranty plan.
  • What is your budget like? Repair costs are high and you can choose a plan that helps meet costs which you may not be able to afford otherwise.

Information everywhere

Navigating the landscape of the extended auto warranty space is also easy because you can tap into information from sources such as:

  • The websites of dealers.
  • Automobile enthusiasts and experts on financial automotive products.
  • Social media sites.
  • Online forums and discussions.

Look for information on the dealer – longevity in the business, track record, reliability and get referrals as well.

Getting an auto warranty for yourself is one of the best decisions you can make when it comes to looking after your car. Knowing how to reach the right plan and dealer will require you to keep the above aspects in mind.

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