Although using a warranty broker has become common place and is an affordable alternative
if you have purchased a used car "AS-IS" there are some things you should look into before purchasing one of their plans.
1. What is covered? Although they say "bumper to bumper", they all have exclusions. Find out what is not covered, usually it is regular maintenance items such as battery, lights, weather striping, etc. KEEP IN MIND most of these coverage's are for costly repairs if something fails on your vehicle, this is not for regular maintenance items.
2. Is the contract renewable after the set years or mileage has been exceeded? Most of the coverage plans expire after so many years or so many miles, find out beforehand
if your contract is renewable AND if it is at a higher rate or the same rate as your first policy.
3. If something does break how do they pay your mechanic? This is good to know, if the repair is completed how easy is it to leave the mechanics? For instance with most warranty brokers all you do is sign the receipt and go. Then the warranty broker pays by credit card, so they take care of it with no out of pocket expenses for you.
4. Can you transfer the warranty to a new owner? Most warranty brokers understand you may not keep the same car for years on end. They offer the option to transfer the policy to another owner (which can increase the value of the car also), but find out if there is a fee involved in this transfer just to be sure.
5. Where can you take your vehicle for repair? be sure to find this out. With most warranty brokers you can take it virtually anywhere because they pay for it by company credit card. So this is just like you paying by credit card. Maybe Leroy's Garage doesn't take credit cards.....well do you really want Leroy to fix your vehicle if you're not footing the bill?.....didn't think so.
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