The truth about Auto Extended Service Product Warranties sold by companies through dealerships, garages, online or in person is… There are several different programs, auto plans and coverages available. Women car buyers beware the costs and coverages vary widely. Here is some simple truths to consider.
1. Extended AUTO coverage Service Contracts. These Platinum, Silver, Bronze or Added-care, Maxi-care, Premium-type tiered packages are usually sold by dealerships that also offer the Manufacturers auto loans. In this way, the cost of the extended service contract or warranty, is rolled into or loaded into the monthly payment. However, on a new car, the clock on the extended plan is ticking as the factory new car warranty is in effect. Dealerships usually charge $1500.00 on the basic plan to $3000.00 for the maximum or platinum coverage which usually includes loaner vehicles and trip interruption at $25.00/$100.00 per day respectively. These plans are transferable, sometimes cancel-able and almost always have an option for how much deductible you will pay per visit. Add $ 100.00 or more if the car you are buying is a diesel, 4wd or Awd or a luxury model.
2. Dealerships also offer extended auto service plans of a similar nature on used vehicles however, BEWARE, the truth about this situation is the plans typically start from the original in-service date of the car at the time of the first sale. EXAMPLE: You are buying a 3 year old, 30,000 mile car. The original new car warranty is over by the years.
The extended service plan you want to buy stops at 100k miles. You can buy a platinum plan covering all the little things like cd player knobs, door handles, however, your clock starts three years ago, so the maximum coverage you can buy is a 7year or 100k miles, giving you only 70,000 more miles of coverage or four more years. This coverage is typically $1895.00 for four more years or 70k more miles. Deductible and extra fees for specialty models apply.
3. AutoSave, or other product warranties like it, start on the day and mileage on the date of purchase and go out to as long as 5 years or 100,000 miles. These are especially good for ”catastrophic coverage” to higher mile, or older vehicles as well as those just out of factory protection.
They required the same owner compliance of regularly schedule maintenance, however, since they cover the engine, transmission, water pump, electrical, seals and gaskets and air conditioning are extra, the costs are significantly less. However, you must pay the entire balance, unless the dealership offer to include it in the loan amount at the time of purchasing an older used car. Used car warranties and product warranties like Autosave sometimes include some preventative medicine (liquid additives) to help lower heat in the engine.
In many cases these auto warranties and product coverages exclude lifted or modified vehicles INCLUDING non-stock over-sized rims and tires sold aftermarket. In this case, you can provide proof the wheel and tire have been dealer calibrated to the appropriate odometer setting (so it clocks miles correctly) and then the coverage will prevail. Without this proof, any claim may be denied, EVEN if the dealer sold you the car with the fancy rims! Usually these plans are non-cancellable unless the vehicle is totalled or stolen or repo’ed, however the plan can be transfered to the next owner at a minimal fee. Autosave has a O.OO deductible, other companies rank the deductible by price you paid for the policy. WARNING: Be careful that the deductible is per VISIT not per ITEM repaired, so you get as many things taken car of at the same time to reduce costs and time in the waiting room.
If you have ANY questions about extended service contracts, product warranties or after-market warranties, please do not hesitate to contact me.
I will do my best to help you. I can offer advice and assistance on AutoSave and other companies, and know quite a bit about ones that are off-shore or shielded by non-US laws. You can reach me at 702-898-1465 or sarahlee@mycarlady.com
If you need any other car buying, selling, trading or financing assistance on any new or used vehicle, please do not hesitate to email me at sarahlee@mycarlady.com or give me a call; 702-521-7546 I’m here to help you with any of your automotive needs and advice is free.
Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at CAR DEALS
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