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An Extended Auto Warranty Should Be Worth More Than The Paper It Is Written On

frd.jpgA new car franchised dealer located in the southern United States has been found to be selling fraudulent extended auto warranties to its customers.  These accusations have been made by several customers when they attempted to use their auto warranty coverage, only to find out it was not valid for the repairs it described in their contract.  It turned out that there were many backdoor outs the dealership had given itself when preparing the contract forms.  These customers complained that the dealership would not on the coverage as written, leaving the consumers with repair bills they believed were covered.  It was later learned that several other customers that actually did get claims paid for work done at a variety of repair shops complained of a lengthy and difficult claims process.

Stories like these are precisely why any auto warranty offered by a dealer, or even an aftermarket auto warranty should provide clear terms and conditions understandable by a consumer.  You should not need a lawyer to interpret what is considered a covered breakdown and what is not.  Consumers should also be wary of any contract that does not clearly describe itself in the layman’s terms.

A quality extended auto warranty can save you hundreds or even thousands of dollars, but only if it is written in a way that allows it to be recognized by repair shops and dealerships nationwide.  It should also only be purchased from a company that has a solid reputation and is a member of the Better Business Bureau.  An investment in an extended auto warranty from an upstanding company should always mean that there will never be a question about whether your coverage is valid when it is needed.

Used Car Sales Are Falling

ucs.jpgThe automotive industry has seen the largest drop in used car sales in almost a decade.  Industry monitors report that in the third quarter of 2007 alone sales dropped by over 3 percent.  Sales of later model cars that are three years old or less have dropped off the most, losing almost 10 percent of their sales.

 

Some new car programs are partially to blame for the used-car sales drop off.  Increase in some of the coverage offered by new car warranties, special insurance incentives, and finance deals as low as zero percent have buyers looking at new vehicles as opposed to late-model pre-owned cars.  Over the long haul this will probably cause used-car prices to drop off considerably.

 

This change has surprised the industry as the third and fourth quarter of the year usually see a slight increase in the seller used vehicles.  The outlook is that conditions will probably continue to be tough for dealers who sell used vehicles, especially with the economy in its current condition.  The auto industry, during a recession, usually takes one of the biggest hits in the financial world.

 

One industry that will probably benefit from the current market conditions will be the auto warranty industry.  Used car warranties will continue to be a necessity for most vehicles on the road.  As consumers will tend to keep their vehicles longer, used car warranties will protect them from having to break the bank for the repairs on these older vehicles.  At least the auto warranty industry will see some benefit from the current economic conditions.

Auto Warranties Add Value

car3.jpgIf you intend to sell your vehicle at some point you should consider purchasing on of the many used car warranties available to you.  Even if you are only considering a sale, automobile warranty can protect you while you still own the car and will add considerable value to the new owner. You will be able to drive your vehicle with the peace of mind that only an auto warranty can bring.  You should also realize that the buyer is likely to want the same comfort when driving the vehicle after the purchase.

In addition, you will increase the car’s value by adding the simple words “warranty coverage” in your ad.  

Consider purchasing an auto warranty for your new replacement vehicle as well.  Down the road the extended auto warranty will most likely save you big money on repair bills.  Remember, the auto warranty you purchase today will be an investment that will surely pay off for you in the future. 

Is It Time For Me To Buy A New Car Yet?

car2.jpgI may envy my friends a little as they are all driving beautiful new cars, but I don’t envy their high monthly payments.  After many years of carting with my family around, the interior of my Explorer may not be much to look at, but mechanically it is still fairly sound.  Rather then taking on a new loan and dealing with the monthly payments, I chose to purchase an auto warranty.  I consider used car warranties and essential investment if you plan to keep an older vehicle and it is your primary mode of transportation.

 

When I returned to the dealer who sold me my car originally and asked him if he could provide warranty coverage, I was told they were not able to sell it to me after the date of sale.  I then went on a quest to find another way to obtain coverage.  I found a number of aftermarket auto warranty companies that offered a variety of different plans and chose a bumper to bumper planned that seemed to work best for me.

 

After going through this process, which I considered a learning experience, I found that doing a extensive research on the different companies that provided and auto warranty online was essential.  Some auto warranty reviews were available that showed that the quality of the companies varied considerably.  Remember, you usually get what you pay for.

Town In Need Of New Fire Truck With A Warranty

ladder.jpgWest Newbury Massachusetts officials have proclaimed that the town needs a new fire truck. The curent truck has numerous problems, most notably, the ladder on the Fire Department’s 28 year old Seagrave truck doesn’t always deploy, and when it does deply its weight limit isn’t even able to hold an average sized fireman wearing his gear.  Also, officials say the truck has considerable corrosion which affects several safety devices that are disabled.  It is said that the list goes on and on noting that repair costs are to be considerable. It would not make sense to put a ton of money into a 28 year-old truck.

The truck was taken out of service several months ago the town is now relying on aid from several area towns but the situation is dire. 

Residents are being asked to approve the funds for a new truck at a Town Meeting in February.  In the meanwhile, they hope to line up a new truck.  This way if voters approve the funding it can be delivered right away.

The truck they are interested in is a 95-foot tower truck with a price tag of $785,000.  Once purchased the vehicle would also carry a limited warranty. To have continuous warranty coverage the town now needs to look into an auto warranty program that would cover an emergency use vehicle.  These commercial type plans are available through several aftermarket auto warranty programs.

Manufacturers Look To Control Auto Warranty Costs

tech.jpgA somewhat new IBM technology helps auto manufacturers cut warranty expenses which are an over $14 billion cost to them annually. IBM’s plan goes beyond “keyword” searches and collects and analyzes data from many different information sources like repair records and blogs. Automotive companies worldwide face stiff competition as well as a difficult marketplace. To help stimulate growth automakers, particularly from the


United States
have resorted to deep discounts to stay competitive. Obviously this takes a toll on the profit margins. To counterbalance downward trends of their profit margins, many automakers are looking at new ways to control costs. Auto warranty coverage is one of the quickest growing areas of operating costs in the industry. In 2004, some industry experts estimated that warranty costs could exceed $45 billion worldwide. In the


United States
, auto warranties account for nearly 41 percent of all auto warranties industry wide. For the first time, in 2004 the number of recalled vehicles exceeded the total number of manufactured vehicles. One of the causes behind rising warranty costs and claims is the ever increasing complexity of the vehicles being built. Almost 40 percent of the value in a vehicle is tied up in the car’s software.  A car could have as many as 70 different processors that control everything from anti-lock brakes, automatic transmissions, cruise control, and fuel injection systems.  Controlling the costs of warranties has enormous benefits. Warranty costs can drag down profits of the automobile industry by over 3 percent. Automakers could lower their warranty costs by half and they would see their profits soar over 300 percent.

Choose An All Round Warranty


 

Auto warranty is given to the car owner by the manufacturer of the vehicle to maintain and repair the vehicle from the time of its purchase from the showroom. The auto dealer on behalf of the manufacturer of the vehicle makes a promise to the customers that if any real manufacturing default detected in the vehicle then that part will be replaced and the repairing cost as well as maintenance cost will be borne by the dealers.  The main motive to launch this service countrywide in US is to guard the interest of the customers.

When you select an auto warranty you are advised to choose a bumper to bumper warranty. It will give and ensure of the whole vehicle’s care and maintenance for the given time period. Apart from usual features in the warranty there are many extra features falls under all round warranty. The owner of the car is responsible for the maintenance of the power train, engine, drive train, and brake mechanism. If you keep it at one side, there are much more responsibilities borne up by the owners of the car. All round warranty is also known as comprehensive warranty; this warranty is quite expensive than other warranties.

Get A Used Car Warranty Along With A Old Vehicle Purchased

 

Some people cannot afford purchasing a brand new car. Old cars are not always in bad or unwanted condition. In fact, they look like new car and the papers of their warranty are still applicable. Many of the used cars are only some years old. If you are buying an old or a pre-owned car then you should ask for the warranty papers from the seller of the old car. These papers are very helpful in the time of problem or if something goes wrong with your car.
You should know some things prior purchasing the old car warranty papers. You must know about the terms and conditions mentioned in the used car warranty papers while purchasing the vehicle. Note down all the conditions and terms of the warranty when you are purchasing the used or pre-owned old car. Many people have this perception that used car warranty is of no use and not at all good. But this thinking is not fair. That is why many car dealers advise their customers to get the used car warranty along with the pre-owned car they are going to purchase.

Warranty Is Necessary For All Cars

Auto warranty is that service which is offered by the manufacturers of the product through the local auto dealers. Under this all the cost of the maintenance and repair is borne by the local auto dealers. Warranty is very necessary for your products to safeguard your interest and the value of your money. Under the law of the US, it has been mandatory that all the product dealers have to provide warranty on the cars or on any kind of product they are launching in the market for sale. But the expense of an accident damages are not covered under the warranty.

There are two sorts of warranty given to automobiles and they are: new car warranty as well as after-market auto warranty. After-market auto warranty is issued to those cars, which are old and used. After-market auto warranty is also known as used car warranty. New car warranty is given to only new cars. After-market auto warranty is very expensive than that of new car warranty taking into consideration the maturity of the vehicle. However in comparison the features of the after-market auto warranty are fewer in comparison to new car warranty. 

Keep An Eye On Fraudulent Warranty

Auto warranty is referred to as a repair and maintenance service offered by the dealers of the car in association with the manufacturers of car. Under the law of the US, all customers product including automobile has to be offered one or the other warranty. Usually, warranty period goes up to three or two years from its purchasing date from the showroom. This has been done to safeguard the customer’s interest as well as to offer them the importance of their money. Warranty is very important tool and is non-negotiable instrument.

Several fake warranties are also there in the market so customers are advised to keep their eye open for these while purchasing the warranty for the cars. They might be very attractive and pleasing from outside but actually they are fake ones, there are hardly any service provided by these fraudulent warranties. A fraudulent car warranty is a normal auto warranty, which consists of numerous features. But the features declared in the auto warranty are never delivered.  So it is advised to protect yourself from these types of fake warranties and consult any good auto warranty dealer whose reputation is good in the market.



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