Pros and Cons of transferrable used car warrantyAccording to the DMV website, you can transfer warranties when you sell a vehicle. “While they may go under different names, such as extended services contracts, these warranties can cover the costs associated with car repairs and some regular maintenance for a stated period of time or miles. Extended warranties aren’t part of a warranty you may automatically receive when you buy the car; you purchase them on your own.” “Some extended warranties merely cover “breakdowns,” while more complete contracts also pay for “wear-and-tear” repairs. That means some will only pay for repairs to parts that actually break, and not just wear down or diminish over time. Keep in mind that many parts never break, so they won’t be covered in breakdown contracts.” “Third-party providers typically offer the least expensive warranties, and give you the flexibility of having your car repaired at a variety of shops. However, some of these companies have dubious histories filled with denied claims, while others don’t have the financial strength to last long. And, if your third-party provider goes out of business, your extended warranty is usually worthless.” “Meanwhile, dealer-offered service contracts usually offer greater stability. But, these warranties tend to be more expensive, and often force you to have the repair conducted at the dealership. So, if your car breaks down when you’re out of town, you’ll be stuck paying the bill.” There are many different kinds of warranties. One of them is bumper to bumper warranty. “This warranty covers any part of the vehicle not protected by other warranties. Parts generally include audio systems, major electrical components and air conditioning. Be sure to check with your dealer for exact specifications. This warranty is also known as "New Car," "Factory Coverage" or "Premier Plus."” Another kind is full coverage, “This is the most comprehensive out of all warranties. It covers many major parts and often includes roadside assistance, towing, rental car reimbursement and common wear and tear. Despite the name, however, it does not cover all components. Be sure to read the fine print before signing.” There is also powertrain, “In most cases, this warranty covers the transmission, engine and all related moving parts like CV joints, drive axle and timing belt. Some dealers will also toss in air bags and seat belts.” The question of passing on an extended warranty is not so easy to answer, “Unfortunately, with warranties, especially extended warranties, there are too many variables and exceptions to give a conclusive answer. After all, you can purchase an extended warranty from a dealer or a third-party provider, and each has its own rules.” “Of course, having a transferable warranty is an excellent selling point. Think how relieved your neighbor would feel about buying your car if he knew he wouldn’t be facing major repair bills in the near future. That’s why you should inquire about this before you agree to pay for the extended warranty, perhaps using it as a deciding factor in determining which warranty to purchase.”
More Auto Warranties ArticlesAre used car warranties worthwhile According to consumerreports.org, it is not worth buying a car warranty. “After dedicating an afternoon ...read more How to cancel a used car warranty The answer to the question was hard to find. But, in short, yes, ... read more Pros and Cons of transferrable used car warranty According to the DMV website, you can transfer warranties when you sell ... read more Warranty on Used Car Bought from Private Party Conventional wisdom says that there are three values for a used vehicle: ... read more What all does the car warranty cover? According to wisegeek.com, not all car warranties are the same. “It’s easy enough ... read more |
|
Disclosure: Advertisements are placed on this website to offset the cost of maintenance and to keep this site free for everyone to use. Owners of this website will receive compensation for products and services purchased through featured advertisements. All claims of actual user results should be considered atypical best case scenarios and not in the norm. |