As adults, you know that everything that you decide to agree to that comes with a contract can end up being beneficial for you or be the worst decision you made in your life. These matters usually pack legal agreements as well as concepts that involve money that may or may not be in your favor.
One good example is the auto-insurance; with the prices of goods and services soaring higher by the minute, you'll realize you need auto insurance to cover for your repair and maintenance cost. It's also a natural reaction for us to gauge situations so we can make the best decision that will suit our needs and budget.
However, once you agree to get that consultation, you are also allowing yourself to be introduced to a plethora of options and add-ons. Some of these may sound appealing to you but a lot of these other services may not be really necessary and affordable for someone like you. It is of course, in the best interest of the insurers if you just say yes and sign up to the offers they lay out for you but this, however, may be financially incapacitating to you.
Extended warranties are like warranties for repair that takes effect immediately after the original warranty expires
One of the offers they are likely to shove at the presentation table is the extended warranty. This sounds enticing and it sounds like it's for your benefit only and nothing else, but how would you know it suits you? Let’s first try to understand what an extended warranty really is.
Extended warranties are like warranties for repair that takes effect immediately after the original warranty expires. The original warranty is what comes as free when you first buy the car. The goal of an extended warranty is to cut down your expenses when it comes to repairs since the trade of parts and services are constantly rising.
You can opt to purchase a warranty even before your manufacturer’s warranty expires but you can also choose to purchase one right after. However, the costs will be considerably higher if you decide to purchase your extended warranty once the manufacturer’s warranty has dissolved.
So now that you know what an extended warranty is, you can ask yourselves these questions from Philkotse.com to find out whether or not it is suitable for you.
1. What company is behind the warranty?
A lot of businesses today tend to outsource to other businesses of an assisting field as their partners. These businesses include insurers and dealerships. Dealerships are often associated with third-party insurers that have different track records attached to their name. If you already know this then our advice is to make sure that the insurers that are recommended by the dealership are backed by a manufacturing company.
This means that the company shouldn’t only be recommended by the dealership but is also recognized and acknowledged by the car-making industry. If there a single coverage for a specific purpose, you may consult legitimate sites for real reviews of the company that’s offering their service to you.
Dealerships are often associated with third-party insurers that have different track records attached to their name
2. How many sellers have you talked to?
If you’re uncomfortable with the offer being shoved at you then there’s no reason for you not to say no. Like most other shops and service providers, there’s always more than one to choose from so all you have to do is to reach out to those are willing to have you as their client and hear what they have to say. For starters, you certainly cannot go online shopping for quotes right in front of the finance and insurance manager right after you didn’t agree with his terms.
Simply ask him for his quote and what he has to offer then say that you'll think about it and stay in touch or whatever polite "goodbye" suits the conversation. You now have an idea of where to put your scale on and you can start surfing the web to talk to other F&I managers to see what they have for you. From here, you can now weigh the differences each company has to offer and guess what? You can even bargain and negotiate with those who allow it.
If you’re uncomfortable with the offer being shoved at you then there’s no reason for you not to say no
3. Do you know the limit of the coverage?
Extended warranties don’t cover everything for you. In fact, many of your car parts that wear out are often left out of the quotes and are not covered by most extended warranties. There is also another marketing strategy that these companies use to group the preferences of their clients according to tiers and membership. Some use the blue card, green card, color-coded scheme while there are also those who utilize silver, gold, platinum scheme instead.
The services and coverage offered will be different for each tier so you may want to take your time to consider the things you really need. Do you blow out a tire often? Then look for that in the coverage that you’ll need. Another good tip is to read the details as indicated by the fine print, there may be some underlying conditions that you can miss which can turn your whole decision around.
The services and coverage offered will be different for each tier so you may want to take your time to consider the things you really need
4. Ask yourself: Do I Really Need This Warranty?
People you consult in regards to matters like these are really good at selling, persuading and making you feel guilty for not taking their quote for your car. You shouldn’t be intimidated by this and feel bad about yourself later because you signed up for something that you weren’t thoroughly convinced with.
After all, if your recently bought car is a contemporary model then there's a high chance that it's one of those manufactured cars that are actually reliable; therefore decreasing the chances of actually needing an extended warranty.
However, if you feel like you want the extra financial assistance and security when it comes to your ride, be our guest in using our tips to assess your need. There is nothing wrong with keeping your hard-earned money to yourself and spend it when you feel like you need it. There's also nothing wrong if you choose to invest it in something that may benefit you in the future.
There is nothing wrong with keeping your hard-earned money to yourself and spend it when you feel like you need it
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