Posted on February 13th, 2008 by Warranty Direct
Buyer Beware…The premium charged by dealers offering Certified Pre-Owned (CPO) vehicles is often not a good value. Many surveys cite that the warranty tacked on to a CPO vehicle is the main reason for purchasing the car. What most buyers do not realize is that the warranties that are tacked on to CPO vehicles are often limited powertrain warranties and/or short term mid-range coverages.
Certification doesn’t come cheap. For luxury cars, the average premium charged is 7.8% of its price, or $3,400. That money will buy you a full bumper to bumper coverage for 4-5 additional years with lots of money left over.
For all the talk of 120+ point inspections, limited warranties, vehicle history reports and others, there is no data to suggest that CPO vehicles are any more reliable than their non-certified cousins. Given that, why pay more for “certification”?
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Filed under: Consumer Affairs, Extended Car Warranty Coverage, Warranty Direct
Posted on February 11th, 2008 by Warranty Direct
How to Choose the Right Company
There are many different warranty companies on the market, all competing for your business. That means that there are many benefits to comparison shopping between them. Be careful to research the warranty administrator (the company responsible to pay your claims) and not only the seller. These sellers (often called brokers) are not responsible to you after they sell you coverage.
Here are some of the most important features to consider:
1. Reputation. An honest warranty company is one that you want on your side. Check them out at the Better Business Bureau or look for reviews of their services online. Check out the major automobile sites on the Internet and find out who they recommend. You can bet they did their homework before choosing a warranty company to recommend. This is very important in finding the right warranty company to entrust your money to.
2. Licensing and Registration. Check their license and registration within your state. While many states do NOT regulate warranty providers, states like California, Florida and New York have strict regulations. Find out if the company is licensed in those states. Those states periodically audit the warranty companies to make sure they are financially sound.
3. Longevity. The length of time a company has been in business is an excellent indicator of their financial strength and how they pay their claims. Beware of newer companies that have little or no history.
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Filed under: Extended Auto Warranty Providers, Extended Car Warranty Coverage
Posted on February 6th, 2008 by Warranty Direct
Why not lock into today’s lower rates and protect yourself from tomorrow’s rising repair rates?
A common misconception is that by waiting to purchase extended warranty coverage, you will get coverage for a longer time. Much like life insurance costs rise as we age, the cost for a car extended warranty will rise as the vehicle ages and accrues mileage. You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage.
We understand that you may have a warranty from the manufacturer. Our coverage is simply an extension of that, not double coverage. The manufacturer’s warranty has been factored into your price quote. The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. In other words, you are paying for tomorrow’s coverage at today’s rates. In addition, our Roadside Assistance benefit may prove to be invaluable during the Manufacturer’s Warranty period. Read more...
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Filed under: Extended Car Warranty Coverage, Warranty Direct
Posted on February 4th, 2008 by Warranty Direct
There are as many variations in warranty contracts as there are car models to choose from. Here are some of the important areas one needs to look at before choosing a warranty vendor.
Administrator
The Administrator is the company who is responsible for paying claims. This company is often not the company selling you the warranty. It is important to check into the Administrator’s background and financial history. Check their Better Business Bureau record and run searches on Yahoo.com to see what consumers are saying about them. Ask them how long they have been in business. Find out if they sell coverage only on the Internet or also provide coverages to car dealers, banks, credit unions and manufacturers. Many consumer oriented web sites recommend purchasing directly from the Administrator. Read more...
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Filed under: Extended Car Warranty Coverage, Warranty Direct
