What do you mean by extended auto warranty?
An extended auto warranty is a service contract that covers car repairs beyond the time period of a manufacturer’s warranty. These warranties typically cover the costs to repair or replace electrical or mechanical problems not covered by manufacturers’ warranties.
How are extended warranties regulated in the US?
In the United States, extended warranties are regulated by many state insurance commissioners as “service contracts.”.
How much is the extended warranty market in the UK?
The Office of Fair trading investigated the extended warranty market again and published a market review in 2012. They said that the UK market is worth an estimated £1billion a year. Out of this £1billion they estimate 75% of people do not compare prices before buying an extended warranty.
Is the extended warranty in the best interest of the consumer?
David Butler of the Consumers Union says, “The extended warranty is definitely in the best interest of the company because if the product breaks down they want you to be satisfied with it and buy another one when the time comes, but isn’t often in the best interest of the consumer unless it can be purchased at cost with no or very little markup.”
Why to get an extended warranty?
Coverage of wear-and-tear components is one of the best reasons to get an extended warranty since that can cover things like brake pads, oil changes, filters, and clutches, all of which are items that get changed quite often during the lifetime of a vehicle.
Is extended warranty worth buying?
Yes, it’s worth buying an extended warranty on a used car. Buying a used car has tons of benefits; they usually have a lower price tag, hold their value for a longer amount of time, and most dealerships (including ours) have a larger variety for you to choose from.
Should you buy the extended warranty?
The best reason, by far, to purchase an extended warranty is peace of mind . If skipping the extended warranty will make you lose sleep or cause you anxiety every time you get behind the wheel, go ahead and buy one. Peace of mind is priceless. If you do take the extended-warranty road, there are a few key pieces of information you’ll need.
What exactly does an extended warranty cover?
An extended warranty is coverage for electrical or mechanical breakdown. It may or may not cover peripheral items, wear and tear, damage by computer viruses, re-gassing, normal maintenance, accidental damage, or any consequential loss.