Extended car warranties aren’t really warranties
05-30-2017, 12:04 PM
#1
Junior Member
Thread Starter
Extended car warranties aren’t really warranties
Found a good read while browsing this site - http://www.reviews.com/extended-warranty/
Under the section "Extended car warranties aren’t really warranties" -
Under the section "Extended car warranties aren’t really warranties" -
"Strange, but true: These products don’t fit the legal definition of a warranty. Technically speaking, the cost of a warranty is included in the purchase price of the product you’re buying (in this case, a car). The term “extended car warranty” is mostly used as a marketing gimmick — it makes the product sound like it’s an extension of the manufacturer’s coverage, when in fact it’s a vehicle service contract sold by a third party.
So, just because you’re buying an “extended warranty” doesn’t mean you’re actually extending the coverage you got when you bought your car. This isn’t necessarily a bad thing: Extended warranties can actually be tailored to fill the gaps of a manufacturer’s warranty. For example, J.D. Power found that problems with technology like Bluetooth and GPS are the top reasons for declines in vehicle dependability — features manufacturer warranties won’t cover, but extended warranties might (Endurance and EasyCare cover in-car technology that was installed by the manufacturer in some of its policies, but not aftermarket items; Warranty Direct offers that protection as an add-on). Other bonus coverage: key fob replacement and rental car service for when your vehicle is in the shop."
In the end though, we stayed with local MB dealer to buy our "extended warranty" package on a GLS 450. So, just because you’re buying an “extended warranty” doesn’t mean you’re actually extending the coverage you got when you bought your car. This isn’t necessarily a bad thing: Extended warranties can actually be tailored to fill the gaps of a manufacturer’s warranty. For example, J.D. Power found that problems with technology like Bluetooth and GPS are the top reasons for declines in vehicle dependability — features manufacturer warranties won’t cover, but extended warranties might (Endurance and EasyCare cover in-car technology that was installed by the manufacturer in some of its policies, but not aftermarket items; Warranty Direct offers that protection as an add-on). Other bonus coverage: key fob replacement and rental car service for when your vehicle is in the shop."
