Just imagine yourself on a date with somebody that you really care about and want to impress with your gorgeous car. You’ve spent the day cleaning it up in preparation for the event. As you’re driving down the highway, going to that fancy restaurant, the engine begins to smoke and you realize that this date may be spent at the repair shop.
Cars break down, it’s a fact of life, but it’s how you prepare for it that matters. There are many different options that can cover this sort of event, but it’s all on how you’ve prepared that will determine if your night will be saved, or if it will be spent getting a taxi to take that date of yours home.
There are two options when it comes to extended warranties. The first option is to purchase it from the manufacturer and the second is from a third party. There are benefits to both and below, we can given you a little information that might make the choice a bit easier.
Hit the jump to read on.
As the title clearly states, these warranties are from the manufacturer. Sort of like buying a television and getting an extended warranty from the company in case you put a bat through it while watching your team lose the big game. These warranties can be purchased at the dealership, although it might take some work.
When you’re buying a vehicle, be sure to ask about these warranties. Dealers usually sell both warranties and sometimes it can be in their best interest to sell you the third-party one. Yet, most will offer the manufacturer’s warranty if you ask for it. Never take no for an answer.
These warranties are usually a bit more expensive than the third-party option, but like Swiss watches and fine wine, you get what you pay for. Most of the time these warranties can be paid in the same payments with your car, making it a bit easier to afford. Just remember, one transmission repair or blown motor and the warranty has paid for itself.
One of the biggest benefits to the manufacturer’s option is the ease of use. When you first roll up to the dealer there will be no questions and no hanging around while you wait for approval. Not to mention the fact that you can go to any dealer nationwide. Most of the time, these dealers offer loaner cars or nicely furnished waiting rooms and that’s bound to impress your date more than a crummy repair shop. You also won’t have to shell out the money up front or file claims for reimbursement.
On top of the time factor, these warranties will use factory-trained technicians who use authorized parts. This might not seem like a big deal, but it is. Aftermarket parts may work just fine, but using them will hurt the resale value of your car. Some won’t even work at all and can damage your vehicle in the long run. Aftermarket stuff is fine when replacing fuel filters and so on, but for big repair jobs you will want authorized parts. In terms of resale value, having your car serviced by the dealer can help resale value. Not to mention most of these warranties are transferable to the next owner.
What Some Manufacturers Offer
Each automaker is different in what they offer. Acura offers you some neat features to make your life easier. Drivers can get roadside assistance, concierge emergency service, rental car reimbursement, an interest-free payment plan, and so on. This warranty is good for eight years or 120,000 miles.
BMW offers the same thing, but a bit differently. Buyers get four years or 50,000 miles, with the options to add on either two more years or six more. You will also get the same services as you get with Acura, such as roadside assistance.
When buying these warranties from a company the size of GM, your plans will vary. There are three choices on offer: Major Guard, Value Guard, and Basic Guard. They all offer several time and mileage choices. Coverage is offered based on years of anticipated ownership and annual mileage driven. Be sure to ask your dealer about different options when buying your vehicle.
Chrysler offers up seven years or 100,000 miles. Yet, they also offer lifetime contracts and have no time limit on mechanical coverage, but only for the original owner; they are not transferable unless required by state law. With this plan you will get roadside assistance and all the perks that the other companies offer. If there is one company that long warranties make sense for, it’s Chrysler, as they have a history of blowing transmission and air conditioning units.
Mercedes-Benz offers many different options. You may choose to continue your warranty coverage up to 60, 72, or 84 months from the original 48-month/50,000-mile New Vehicle Limited Warranty start date - up to either 75,000 or 100,000 total miles. Mercedes, like BMW, offers road side assistance and all the little perks that you get from buying a luxury vehicle.
Volkswagen has five different coverage levels and they each offer different things. The cheapest is a simple powertrain warranty, but you can also go platinum and get every benefit of an extended warranty. With this top of the line service, everything is covered, including DVD players, brake pedals, and so on. Like the others, VW offers rental car coverage and towing coverage.
We see a trend with most of these automakers. Most will give you a choice of how much you want to pay. Pay more and you get more. Toyota offers platinum, gold, and a basic powertrain plan. You must take into consideration how long you want to keep your vehicle and how likely you are to break something. If you have kids, the chances go up and if your young child breaks the DVD player in the minivan, it’s good to know it’s covered.
Most of the other automakers offer the same services as you see above, but some might have differences that you’ll need to find out about. Be sure to ask your dealer or call the automaker to find out more. In today’s world, most offer road side assistance and rental car reimbursement.
Third Party Options
Whereas manufacturer’s warranties offer many perks with little cons, these warranties are the other way around. The only downside to the first option was cost, while these tend to be a bit more interesting.
We have seen them on commercials over and over again, about how we can just call them up and our automotive repairs will be taken care of. These companies promise to offer you peace of mind in the event of an incident, but most of the time, people end up getting scammed out of serious amounts of money. Now don’t get us wrong, we don’t think that all of these companies are out to get you, but we found that the honest ones are few and far between.
Basically, a third party warranty is a warranty that has no affiliation with the product it covers. Like buying an eBay protection plan for an electronic item. These warranties differ greatly from the manufacturer’s option, as they don’t have to use authorized parts or factory-trained technicians.
Third-party warranties may give you that option, but it might not be that easy. These companies realize that taking your car to dealer might cost a pretty penny and some just don’t want to fork over the money. You might be sent to a repair shop that they tell you to go too, as some body shops don’t accept some of these warranties.
On the plus side, these warranties are usually cheaper. If your vehicle never breaks, you’re in luck and you saved some serious money, but if it does go wrong, the hassle might not outweigh saving a bit of money. Like we already said, you get what you pay for. While finding deals might work for some things, it doesn’t in this case.
There have been numerous third-party warranty companies that have gone under within a few years and it’s key that you pick the right to avoid getting scammed. Companies like Warranty Gold and Continental have gone down and, in the process, stolen money from customers and we don’t doubt that there will be more to go in the future.
Research, Research, Research
Doing research is something that many of us have done since childhood and it’s not that difficult, just time consuming. A quick Google search is easy to do and will reveal quite a bit about a company. We typed in Mogi and found plenty of information on the company and some of it wasn’t good. You may look them up on message boards or check out the BBB website.
You can also go to dealers and body shops to see what different companies they accept. Sometimes you can ask about these different companies and what kinds of hassles people had to go through in order to get them to pay up. Some of these shops have had to deal with these warranty companies first hand and have stories to tell. Always ask the people who know.
While we can’t recommend a company for you, we can tell you to go to CARCHEX, WarrantyDirect, and NationWarranty, as those sites can help you select the best plan that suits your needs. With these sites, you can easily get a quote.
Don’t believe commercials, as anybody can advertise on there. Be sure to do research on any company that you’re thinking about working with. Spend a few days looking up information, write everything down and examine it. Make sure that this company is right for you, as some are just downright bad. There have been reports of companies calling you and telling you that your manufacturer’s warranty is expiring. Most of time this is a lie and a scam, so don’t believe them. Take the time to figure out exactly when your car’s warranty expires that way you’ll never be tricked into this scam.
Another trick that they might use is the “blacklist”. A few companies have been known to use your VIN to convince you they can "blacklist" your vehicle so that no one else will cover it, unless of course you cover it with them. Don’t believe this, as it’s a complete and utter lie.
Remember, whereas manufacturers have a vested interest in keeping you as a customer, these companies don’t. There are plenty of reviews of recommended car warranty on sites like CARCHEX, WarrantyDirect (877-867-3580) and NationWarranty (866-769-1773).
All we can say is that you need to decide for yourself what is best. We recommend the manufacturer’s warranty for the best coverage and less hassle. If you can’t afford it, that’s fine, just be sure to research over and over again what third-party company you want to go with. Nothing hurts worse than a repair except for getting scammed. Not to mention you’ll probably lose that date as well.