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Extended warranty

warranty seal

Dealerships want you to believe that your extended warranties can only be used at the dealership. In most cases you can use your extended warranties or service contract at the repair facility of your choice. If you like the dealership you get your extended warranties serviced at, that is great. Sometimes the service you get at a dealership can be less than amazing. I know for instance at our shop we work hard to make the customer experience a great one. Like they always say read the fine print, if you’re unhappy with the service you’re receiving look at your contract and see what it says about where you can have your car serviced. If you need some assistance we would be more than happy to look at it for you.

What does an extended warranty usually cover?

Well that is a loaded question. All warranties are different. Often time when you are sold the warranty you have options on the coverage you are buying. The contract usually will spell out what is covered and what is not. Maintenance is not usually covered by any contract, i.e oil or fluid changes, brakes, tires or any other wearable items. If you’re unsure about what is covered call the phone number on the contract, they can usually help. I am going to use the term “usually help” loosely.

How do you make sure and keep your contract in good standing?

Most service contracts have a clause if you do not keep up on scheduled maintenance the contract is VOID. This is very important! Not only must you do the maintenance but you must keep the receipt so when the time comes to use your maintenance contract it will be in good standing. Here is my tip for what it is worth. In most owners’ manuals in the back it has all the maintenance required for the vehicle. In each section there are provisions for dating when the service was performed and where it was performed. Fill out the book religiously and staple a copy of the invoice to that page, you will be thanking my later, trust me.

Are service contracts worth the money?

In my humble opinion, No. Can they be extremely valuable, of course. Extended warranty companies are just like any other insurance the odds are in their favor that the money you paid in will be a lot less than the money they pay out. Think about it, if you paid $1000 for the contract and they paid $1000 in repairs on your car how could they survive as a company? When these extended warranties payoff is when you have a major component failed like an engine or transmission and you have all your paperwork in order.Again it is very important to keep all your records in order.

Thank you for reading, I hope it was insightful . If you have any question about extended warranties please leave a comment and I will respond.

By Donald Henderson

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