If you’re in the car-buying process, you may find yourself getting talked into an extended warranty, and we want to make sure you make the right decision about it. Should you buy one at all, and if you do, should you buy it from the dealership or a third party?
We’re going to answer that first one right away: it depends. If you’ve got the money for it and an extended warranty offers notable coverage beyond the manufacturer’s warranty, then it’s probably worth the cost. But that’s a decision you’ll need to work out for yourself, based on your budget.
If you decide to get an extended warranty, though, you may be surprised at where you can get the better deal.
Negotiate with the Dealer
Although a third party extended warranty might look like a great deal on paper, that number they quote you is usually very fixed, without any wiggle room whatsoever. And it’s usually a bit less than what you may pay if you bought a comparable warranty from an auto dealership.
So, why should you ever buy an extended warranty from a dealer? Because just like with almost everything else in the car-buying process, you can negotiate. Not only is the price of the extended warranty often negotiable, but if you’re doing your financing through the dealership, you can usually haggle over other bits as well.
Would you believe that one of our readers recently was able to get an extended warranty without actually raising their total expenditure for a new vehicle? They negotiated with the dealership and received a lower APR on their new car loan that offset the cost of the extended warranty.
The driver was happy, the dealer was happy, and even though the bank providing the loan received a lower interest rate, they still had a new loan to make them money. Everyone won, just because our driver started negotiating with the dealership. Remember, at the dealership, very few things are set in stone.
Trust Your Honest Car Dealer
We think that the best driver is a knowledgeable driver, and we work hard to give you the best in resources for buying, owning, and maintaining your vehicle. Keep following us here at Honest Car Dealer and make your car-buying and ownership experience all the better.
May 1, 2014 by Jamie Rettig