Quote:
Originally Posted by Steenhard
Yes, you should be able to purchase your extended warranty from your dealer. I specifically asked if I could buy one when I'm reaching the end of my factory warranty.
You can also purchase them from independet warranty dealers, but my Ford dealer told me that a lot of the independent dealers make you pay for your repairs out of pocket then the reimburse you.
I know you'll take a hit on the extened warranty from your daler as opposed to buying it at the time of purchase of your vehicle. (My deler told me that outright.) I opted to to pass at the time of purchase, but am kind of wondering if I should have bought it. Oh well, live and learn...
Edit: You might want to check with your dealer. Now that I think about it, he said something about buying it at least a month or 1000 mi. (something like that anyway) before your warranty expires.
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The dealers will always tell you this because they want you to buy the warranty from them. Ask them how much the dealer profits from each plan sold and how much commission goes to the salesperson...when I worked at the dealerships the profit was almost half the price of the policy. I doubt you'll get an honest answer though.
Unless it has changed, yes, you must purchase the warranty before your bumper to bumper coverage expires. Some independant companies may sell a policy after the factory warranty has expired though.
Buying an extended warranty is much like gambling. You're betting that you will incur expenses greater than the cost of the policy and the insurer is betting the expenses will be less than the policy price. Obviously the underwriting company is the "house", and the favor is always with the house. Otherwise they would not be in business for long. Therefore, if using an independent warranty company, find out who the underwriter is. If it's a nationally known company you should be fine. Lesser known companies will be more likely to "tank". These things happen. With the current global economy there can be no guarantees.
