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extended warranty

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An extended warranty (sometimes called a service agreement, service contract, or maintenance agreement) is a prolonged warranty for your automobile. Some people purchase expensive extended warranties for their cars in a way that strains the bounds of common sense. Here are a few tips on how to purchase an extended warranty prudently and wisely:

1) Always remember that the sales associate trying to sell you the extended warranty is making up to 15% commission. Obviously, the associate is going to try to sell you the most expensive warranty he or she can! Only purchase what you need!

2) Some extended warranties that are purchased for multiple years state in writing that during the first year, the consumer must still deal with the manufacturer in the occurrence of malfunction. Thus, what is often promoted as a five-year extended guarantee is actually only a four-year guarantee. Be careful.

3) If it doesn’t feel right, don’t buy it. Every Tom, Dick, and Harry is selling extended warranties. You should not ever feel obligated to buy one unless you like the terms and the price and feel completely comfortable with the warranty.

Bloggers speaking about extended warranties can be found at sites like Car WarrantyX and Buy Auto Warranty.

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