Cars today have more accessories and electronics than ever before. Even though they don't break often (about 1 in 3), the repair costs are taxing for the average and even the above-average budget. With the amount that Americans are driving these days it is no surprise that extended warranties are becoming more and more popular. Most vehicles in today's marketplace come with only a 3 or 4-year warranty from the manufacturer. Cars would become too expensive if manufacturers placed longer warranties on them, and the local dealerships would lose some very important "service business".
Today's vehicles can be very complex and costly to repair. Protecting yourself with an extended warranty from a reputable company can help to avoid a potential budget-destroying repair.
In dealing with extended warranties most people believe that extended warranties are only offered at their local dealerships and do not realize that they can purchase better coverage at substantial savings directly from a warranty company. Local dealerships use extended warranties as "additional profit." These warranties are typically restricted to being valid only at the location where the warranty was purchased. Warranties purchased through a local car dealership are typically financed in with the vehicle purchase. This traps the consumer into paying finance charges on their warranty purchase and eliminates the ability for them to cancel the warranty for a proper refund. No cost, interest free payment plans are available from some extended auto warranty providers making the plans very affordable.
An extended warranty offered by companies such as TheAutoClub.com delivers broader coverage than most dealership's mechanical breakdown warranty. Consumers should be aware of the deals available and make sure they are getting the best deal.