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If you want to sell your old car and buy a new one, you must pay attention to its warranty as well. The new car you acquire from your neighborhood car dealership usually comes with an original manufacturer’s warranty. It is included in the total price you pay for your new car. This warranty covers the costs of replacing certain defective parts resulting from poor workmanship. It is valid for a limited period and on the fulfillment of certain specific conditions. When it expires, you might have to consider buying an extended car warranty. This warranty will help you cover the costs of repairs and maintenance in the future. You should buy it if you do not have any plans of selling your car in the next 6 to 8 years.
How do extended warranty companies set the prices for their plans?
An extended car warranty is an optional plan which third-party companies offer to sell to automobile owners. It covers the expenses you might have to incur on certain repairs for your new car. It comes into effect after the expiry of the manufacturer’s warranty on your car. The price you actually pay to buy a suitably extended car warranty depends on the following –
- The model and name of the manufacturer who made your new car,
- Your car’s date of manufacture,
- The number of miles driven since the car’s purchase date?
- The current mechanical condition of your car,
- Whether or not the extended car warranty has deductibles,
- The types of repairs and auto part replacements which the extended warranty covers, and
- The market reputation of the third-party corporate provider
How to choose the right company?
You need to understand there are numerous third-party extended warranty companies in the market. Not all of their plans, prices, and services offered to customers are the same. Some of them are better than others. You need to choose the right one whose terms and conditions suit your specific needs. Take into consideration the following factors-
- Reviews of the company online.
- Type of coverage.
- Any discounts offered.
- Are the prices fair and reasonable?
- Does it offer additional benefits?
- The quality of after-sales services.
Make sure you make a list of other questions you may have. Get all your answers. It is prudent to collect as many price quotes as possible. Compare them. The price you pay should be within your budget. Read the terms carefully and clarify them if you have doubts. In this way, you can get a good extended warranty for your car with success.
Read more: Selling A Business Checklist
Third-party extended warranty companies are always willing to sell their attractive plans to new car owners. You need to select the right one after the original manufacturer’s warranty on your car expires. To do so, you need to look at the market reputation of the company. You even find out what kind of coverage its plans offer. Moreover, you should determine whether the company is offering its customers attractive discounts or additional benefits like roadside assistance or not. Research well and educate yourself as much as possible. In this way, you can make an informed choice and get a good deal successfully.
