Where to buy and what is the right price to pay?

A majority of vehicle service contracts are sold at the dealership when and where the vehicle was originally purchased. It makes sense give the fact that it is almost always discussed with the buyer when the sale is being completed. However, studies have shown that almost 65% of buyers did not purchase an extended warranty at that time. There may have been a variety of reasons why it was not bought at that time; budget, faith in the quality of the vehicle, or just didn’t like the person offering the plan.

Subsequently, there might have been a recognition that an extended vehicle service contract is something that is wanted. There are several places to purchase one after the original sale.

Going back to the dealership where the vehicle was purchased is always an option, but their selection may be limited, and if the vehicle is older and with higher mileage, they might not be able to sell one at a competitive price. Additionally, some dealerships may even require an inspection of the vehicle prior to offering to sell an extended service contract which can add cost and time to the plan.

Some manufacturers and automotive finance lenders may also offer extended service contracts. They have access to the ownership and purchase records of those that either bought their car or financed with them, and mine that data to find consumers that did not buy at time of original sale. Once again, their choices might be limited in the plans offered, but the consumer should feel confident that they are a reputable and reliable source from which to purchase.

But for those individuals that purchased their car from a private party or a family member, these other choices may not be available to them. Fortunately, some companies have recognized that need, and have extended warranties available regardless of where or from whom you bought your vehicle. Some of these have begun offering 0% financing plans for up to 18 months to help make the purchase easier to budget.
The price of an extended warranty will be based upon the type of vehicle, the mileage on the car, the length of coverage requested, and type of plan selected.

When buying an extended warranty after the original sale, selecting a company that offers a wide variety of mileage plans and types of coverages can help ensure that you are getting the best plan for your needs and budget. The best sellers will also have a number of providers to choose from so that they are not locked into only one set of choices or vehicle service companies—that can greatly drive up the cost to the buyer. Just as there are insurance brokers that offer a selection of companies to choose from, a good extended service contract sales company will do the same-work with multiple companies to help guarantee that the buyer gets the best plan at the best price.

Also vitally important, is to be certain that the plan you purchase is cancelable. There are some shady direct marketing firms that lock a consumer into buying an extended warranty, and then will not allow them to cancel for any reason. This is an expensive mistake that too many consumers have made.

Finally, look for companies that offer 0% financing with the purchase. This is a smart opportunity for a consumer to leverage, as some will guarantee the financing regardless of any past credit problems. This helps makes the protection more affordable and easier to budget.