Avoiding the Pitfalls of an Auto Warranty
Today, the auto industry has been hit hard by the economy, putting them in a position of trying to sell more cars while making decisions to boost the bottom line. For this reason, the number of car dealerships pushing buyers to add an extended warranty to the factory warranty has skyrocketed. Unfortunately, while many of the reputable dealerships are honest and loyal to consumers, many mark up the price of auto warranties, as a means of making more money.
The most common mistake made by car buyers is not looking over the warranty information close enough. For instance, a person might sign on the dotted line, believing the warranty is simply a standard contract. However, after driving away from the dealer's lot in a new car, months later something goes wrong requiring repair. The car owner has a regular mechanic who performs the work. However, when the receipts and a formal claim are submitted to the dealership for reimbursement, the individual discovers that only repairs made by the dealer are covered. Therefore, the car owner now has out of pocket car repair expenses and his or her relationship with the dealership is damaged.
Additionally, some people assume that a factory or bumper-to-bumper warranty would cover everything, again, when it boils down to repairs, they find the warranty provides protection for everything excluding tires and brakes. Then, some car buyers think they are walking out of a dealership with a factory warranty, only to find the warranty is actually what is known as a power train warranty, meaning only the engine and transmission are covered. The bottom line is that people need to know what they are getting before agreeing to any auto warranty.
Auto warranties can also have stipulations easily overlooked. As an example, if a person were to add a tow hitch to the vehicle for taking the boat to the lake on the weekends, he or she might discover that this simple act voided the warranty contract. Perhaps the individual had a problem with the engine overheating but kept driving. Admitting to this in the claim, the person might have that claim denied in that it stated clearly in the warranty this would not be covered. In fact, not getting an oil change done on a set schedule according to the auto warranty could also result in a claim being rejected.
To make sure every aspect of the auto warranty is fully understood, people need to take proper time to identify everything that is and is not covered, as well as stipulations that could void a claim, schedules for regular maintenance, authorized mechanics, etc. All of this would save the individual a tremendous amount of frustration, not to mention money.
I did quite a bit of research on Acceptable Warranty. When I saw that Consumer Reports wrote [positively] about you, I was sold.
- K. Gervitz