As many of us know, prevention is better than the cure. Therefore many people in Phoenix prefer buying extended warranty insurance for their vehicle just in case. No one wants to be stuck out in the desert. However, many people dislike extended warranties for some core reasons. A recent survey suggests, more than 55% of car owners haven’t utilized their extended warranty. Some others complained that they spent way more on the warranty then if they used auto repair loans instead. Secondly, a staggering less than 30% existing customer said that they would opt for extended warranty again if given a chance.
So the question arises, is it a worthy investment? Why should someone purchase an extended warranty?
Major car insurance companies push customers toward purchasing an extended warranty. It’s quite evident why they do this; it makes more money for them. Before jumping into a car warranty in Phoenix, it’s important to understand about extended car warranty and its usage. We’ve listed down a few key points to note before purchasing your warranty.
Reliability of Car
If you’ve recently bought a Mercedes and the salesman pitches you an extended warranty add-on, you most likely wouldn’t need it as Mercedes is a quality premium brand. It means the more reliable your vehicle is, the less need for an extended warranty you’ll have.
Who’s the Provider of the Warranty?
Either a manufacturer or a 3rd party company will provide the coverage to you. Both have their pros and cons. If you’re covered via manufacturer, your car will deal in the hands of factory professionals with authentic parts. Conversely, a 3rd party company will provide the insurance at a much lower cost as compared to the manufacturer that charges a premium.
Peace of Mind for You
A key reason to purchase an insurance policy often overlooked by many is the psychological effect it’ll have on a person. Therefore, if you believe by being a little inconvenient financially you can afford your car extended warranty then you should go for it. It’ll give you peace of mind.
What Is The Warranty Coverage?
It’s imperative for a customer to know what’s included in the extended car warranty and what’s not. Every car warranty has a certain level of coverage and can assist financing auto repairs in Phoenix with appropriate deductibles accordingly. Therefore, don’t simply sign onto the contract without giving it a thorough read. As a rule of thumb, policies that only cover engine and transmission are most likely just to go to waste.
What If I Can Only Afford a Pre-Owned Car?
For new car owners, if they feel the factors mentioned above apply to them then they should scout for an extended car warranty. However, if you are a used car owner, don’t lose hope as the majority of car insurers offer Certified Pre-Owned Programs (CPO). It can also be considered as an extended warranty for used cars. However, extra care and scrutiny are required from the customer before going CPO. Look out for these few things before signing your contract.
Will CPO Help Me?
It’s quite obvious that car insurers make money in the aggregate of their warranties. Therefore they’ll only insure cars that are in good condition. They’ll inspect the car bumper-to-bumper and only register if it falls in between their strict guidelines. So if your potential new car is being considered for the pre-owned insure pool, it means it’s a good machine.
What Factors Should I Consider Before Purchasing a CPO?
As every CPO is different, it’s important to see the deductibles charged by every manufacturer. Also, it’s important to see if the CPO warranty is transferable at a later stage so it can be sold off to the new owner. CPO programs contain a ton of paperwork; therefore, scrutinizing it is the key here. If you do find a deal that is too good to be true, in most cases, it’s the truth, and you should be cautious. Most importantly, you’ll need to see the extent of coverage you’re being offered and the miles/ period associated with it.
Should I Use a Phoenix Extended Car Warranty?
Phoenix has been a leading state in Vehicle Service Contract (VSC) industry for a considerable amount of time. Their extended warranty programs have been getting mixed reviews from different customers. It’s merely because the majority of people jump onto signing an extended warranty without adhering to the guidelines we’ve mentioned over here.
The company promises to offer quality extended coverage at competitive rates. Their full financial disclosure policy helps potential clients to trust them.
Therefore, in today’s world where multiple companies are offering extended car warranties, it’s quite challenging to rush into buying the best car warranty. As a customer, it’s important to not rush into things but read through all the paperwork correctly. You don’t want to be stuck in this loophole later on.