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Used Auto Warranty Warning: Beware Dealer-Issued Extended Auto Warranty Coverage
Buying a used car? You need an extended auto warranty to protect you from expensive surprises down the road. But be careful when your dealer tries to sell you used auto extended warranty coverage. Usually, the dealer is simply reselling used auto warranties issued by a used auto warranty company, with a markup of up to $1000. You could just as easily have bought the extended warranty directly from the auto warranty company. But overpaying for a third-party used car extended auto warranty is certainly not the worst used auto warranty deal you can get. The worst auto extended warranty deal is to buy one that isn’t issued by a third party at all. Dealer-Issued Extended Auto Warranties Explained Yes, some dealers actually sell extended auto warranties they’ve created themselves. These dealer-issued auto warranties typically only allow you to get service at the dealership. They either don’t cover repairs done anywhere else at all, or they only cover emergency repairs for breakdowns. Often, a dealer-issued used auto extended warranty even restricts you to getting maintenance at the dealership only. With a captive clientele, the dealerships often charge much more than local mechanics. There are some other big problems with a dealer-issued used auto extended warranty: What happens if you move far away? Answer: you’d have to buy another auto warranty. What if you’re driving somewhere far away when your car breaks down? Answer: if the used auto warranty doesn’t cover reimbursements for emergency service, you’re in trouble. Even if it does cover reimbursements, you’d better hope your credit card or checking account can handle the damage in the meantime. What if the dealership goes bankrupt? Answer: get in line behind the banks, the car manufacturer, the dealership’s vendors, and everyone else trying to get money out of the business. What if you just aren’t satisfied with the dealer’s work? Answer: complain very, very nicely. You can’t take your business elsewhere unless you’re willing to pay for it. If you comparison shopped the dealer-issued extended auto warranty, you’d realize it wasn’t worth it. But most people never do a used auto extended warranties comparison. There is simply so much ignorance about auto warranties. Your best hope is to learn more. Dealer-Issued Used Auto Warranties: Why Does Anyone Buy Them? Most often, the buyer simply never thought about an extended auto warranty before going to the dealership. When the salesperson explains how important extended auto warranty coverage is, the buyer just thanks him for the tip and buys it. The buyer doesn’t realize how expensive the warranty is. Of course, car repairs can potentially be so expensive that even an overpriced dealer-issued warranty can pay for itself several times over. Meanwhile, next to a $15,000 car, even an overpriced $2500 dealer-issued warranty seems cheap. But if you’re going to buy a warranty, why not buy a really good one? Many buyers mistake dealer-issued warranties for manufacturers’ warranties. In some cases, the salesperson may even try to let you think the warranty will cover repairs at any of the dealerships affiliated with that manufacturer (say, any Chrysler or Mitsubishi dealership). Of course, such warranties do exist, but they’re more common for new cars than used cars. In short, if a used car dealer ever tries to sell you an extended auto warranty, make sure to ask flat out: will this warranty cover repairs done anywhere, or just this dealership? Double-check the warranty itself to make sure it has a third-party company’s name on it, not the dealership’s. Better yet, why not just buy the extended warranty directly from the warranty company rather than pay the dealer hundreds of dollars of markup on it? That way, you can also research the warranty thoroughly, without pressure. In fact, you should start investigating extended auto warranties even before you go to the dealership. You’ll certainly like the salesperson’s face when you tell him you know what the original warranty company charges for the warranty they’re trying to sell you. You’ll also know in advance how much total the car purchase really will cost you. Don’t wait. Start looking at extended auto warranties now, before the dealerships’ salespeople ever have a chance to breathe down your neck.<p>Joel Walsh, a freelance automotive writer recommends Auto Service Warranty, Inc. where you can get an <a href="http://www.autoservicewarranty.com/">auto extended warranty</a> quote online in seconds: http://www.AutoServiceWarranty.com/<p>
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Changing the Adversarial Nature of Car Sales
Consumers have an adversarial attitude towards car dealers, and I can’t say blame them. The retail auto industry has done so many things to create an atmosphere of confusion and intimidation that many car buyers understandably dread the buying experience. Not only do some dealerships encourage their sales staff to engage in dishonest tactics to fleece customers, many have proven themselves to be sexist as well. I always wondered how the salesmen for those particular dealerships came home at night and looked their wives or daughters in the eye. Being a dealer myself, I have encountered the best and worst that the business has to offer. While my turnover is quite low compared to most, I have hired sales associates with prior experience over the years. I have also fired more than a few of these “professionals” within a week of hiring them. Why, you ask? I don’t mean to sound trite, but I do business by the golden rule. As a result, I won’t tolerate dishonesty on the part of my sales staff or the condescending attitude that I notice many dealers and salespeople take toward their customers. I also refuse to use the dubious tactics that many dealers use to nickel and dime more profit out of every customer that enters their showroom. Now, let me tell you what the results of following the golden rule are… I don’t have an adversarial relationship with my customers. Sure, more than a few have stepped into one of my sales staff’s offices ready to do battle, but we quickly alleviate their anxiety by doing something that I can wholeheartedly recommend for any business. We give them honest, fair and respectful treatment. I know this might sound like a novel approach in the auto industry, but it’s the only way to do business in my opinion. If more dealerships would stop trying to treat every sale as though it were the last one they will ever make and concentrate on building a good repoire with their clientele, they would enjoy the success that I do. I would bet that my profit margin is, on average, a bit below that of most other dealerships. Still, I never have a shortage of customers, most of which return for their next purchase. Many of my long term customers will wait for me to find the car they are interested in before buying from another dealership. Why? Because they know that when they drive off my lot, they have been treated fairly and have received a good value for their money. More importantly, I can go home at night knowing I run an honest business and that I can take pride in considering myself part of the community I do business in. That’s worth a lot more to me than a few extra bucks. I wish more of my competitors felt this way as well, because it would benefit our industry as a whole to change our sales philosophy for the better. To learn more visit Spanos Imports of Daytona Florida visit http://www.spanosimports.com/
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