Author by : Jerry Rowan
You bought an extended warranty from the car dealer along with your car. You’ve waited 3 years for the manufacturers warranty to expire. Then the day has arrived, you experience a problem with your car and present the warranty to the repair shop with a smile. You’re prepared!
The question now, is your claim due to Mechanical Breakdown or is it due to Wear and Tear? If your warranty is a mechanical breakdown warranty you are about to have a new experience. The shell game played by many warranty companies. You can bet your Mechanical Breakdown Warranty Company will call your warranty repair a wear and tear repair and reject your warranty claim immediately.
You can learn now or later. Now is cheaper. You want the warranty that covers BOTH!
Most auto breakdowns can be classified as wear and tear. You want both Wear and Tear and Mechanical Breakdown in your coverage The fact is that most auto failures wear down before they actually fail so they don’t qualify for mechanical breakdown warranties.
With some car dealer extended warranties, all covered repairs must be done at the dealer. This seems like a lose / lose situation for the buyer. The dealer already made money selling you a Mechanical Breakdown warranty, and then they charge you for uncovered repairs. And, what if you move to another city before the warranty expires?
People say that car dealers lie to them and say that everything is covered. Did they read the contract? Of course not. The dealer wore then down so badly they don’t know if it was day or night when it came time to sign for the warranty. You have to read the contract yourself. The only thing that counts is what the contract actually says. Often the warranty sold by car dealers is a mechanical breakdown insurance policy for over $3000!
Read the contract before buying. Often the contract will clearly say it is Wear and Tear or Mechanical Breakdown. Many times it won’t and you have review what is covered and what is excluded to see whether wear and tear claims are excluded from coverage.
Mechanical Breakdown always covers less and is a subset of what a Wear and Tear contract covers. In the short run a Mechanical Breakdown contract may cost less but it may also cost more so don’t think that price can determine what you are looking at.
The giveaway is the exclusions. What the inclusions giveth the exclusions taketh away. Don’t be lazy, read the entire contract. If the salesman tries to rush you it is because he knows that once you read it you won’t buy it. Read it all.
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This article is by Jerry Rowan. Jerry provides information about car buying, selling. About to buy a new or used car? About to sell a used car? You will find information on how to make the transaction as painless as possible Here. |
[tags]extended warranty[/tags]
