Used Car Warranties

When buying a used car, there are a lot of things to take into consideration. One of the most important things is the warranty. A used car warranty can be your best friend in sticky situations, and it can save you a lot of money. That is, if you have the right one. Buy the wrong warranty, and you could be left holding the bag…the empty bag.

There are some specific things to look for when buying a used car warranty. First, make sure you read the entire agreement, fine prinat and all. Lots of companies (and not just used car warranty companies) rely on the fact that many people skim lengthy agreements. They use this knowledge to bury clauses that might scare off potential customers.

It’s good to find a company that has a good track record, and is well funded. Warranties are all about money, so you want to make sure you deal with a company that has enough of it. This kind of information can be gleaned from the company’s annual report, which you can often find published on the Internet.

It’s also a good idea to find a company that both sells and administers the warranty. When everything is done in-house, you’re more likely to avoid haggling over what a warranty covers and what it does not cover.

Some things to avoid:

1. Cheap-y warranties. We should all have learned by now that cheapest does not equal best, or even best deal. Usually when you buy the cheap stuff, you get the cheap stuff. Cheap coverage, cheap company, cheap assistance.

2. Companies, who instead of telling you about the benefits of their company, tell you about the shortcomings of other companies. I’ve usually found that businesses that don’t make any mention of their competitors are the ones who have the most success. My explanation for this is that these companies are confident in the quality they provide, so they don’t need to talk trash about other companies. Also, a company that is unwilling to talk about itself may be trying very hard to hide something.

3. Companies who focus on the things they do not include in their warranties instead of the things they do. If you met someone you were attracted to, and the entire time you were speaking with this person he or she told you all about the things they will not do for you, would you want to see them again? Likely not, and it’s the same for used car warranties. Don’t let them define themselves by not defining themselves. Find out what they will do for you.

We will continue to discuss used car warranties, whether to buy one (most of the time we recommend buying), who to buy from and where to buy it.

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