How Do You Buy An Extended Warranty?
Do you even need one? Extended warranty policies can be very expensive. The cost will vary based upon what is covered and the length of coverage If you decide to buy one, don’t let the dealer sell you the wrong extended warranty. Be ready and know your stuff when you purchase an extended warranty. • Decide to buy or not to buy Let’s not get the cart before the horse. The first step in this process is to decide whether or not buying an extended warranty is right for you. To do that consider the following: • It’s probably not covered. Most people lose money on extended warranties. On average, less than 2% of the money collected by the seller of an extended warranty is likely to paid out in claims. These plans are so profitable that the plan sponsor usually pays a commission of up to 50% of the selling price of the plan back to the selling dealer. In fact, the dealer will probably make more money off the sale of an extended warranty than will be made from the sale of the car itself. • You
