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A great number of people, if not almost all people, are aware that there are more things that one can buy than automobiles in a car dealership. In these places, people can also invest in various other products which compliment their vehicle purchase. For example, one can buy accessories customer made for their car or truck, from high performance engine parts to sill plates to navigation units and special radios. Items like these are optional add-ons for people to make their vehicle stand out in the crowd. The other things that people can buy in a dealership are various types of insurances and service plans, from credit life insurance to extended auto warranties to maintenance contracts. While the pricing on the credit life protection and service contracts at the dealership is typically competitive, the price one pays for extended auto warranties is higher when purchased this way. The reason behind the large discrepancy in the pricing of extended auto warranties is simple. The credit life protection one can buy through the dealership is coverage provided by a third party but offered by the dealer on behalf of the dealership. On the other hand, extended auto warranties sold at dealerships are sponsored by the manufacturer of the vehicles being sold. As such, the pricing on this isn't as competitive as one would hope. While years back extended auto warranties were solely sold my dealerships, many companies that don't manufacture vehicles are stepping into the mix and adding more options for coverage. Unlike automobile insurance which protects the car, the people in it, and other people in other vehicles should one be at fault in an accident, extended auto warranties cover the car and only the car. Stated that way, it may seem that this sort of coverage is a waste, but extended auto warranties will pay for the major car repairs that cars need after a few years of ownership. While manufacturer's warranties can cover a vehicle for a couple of years or a certain number of miles, today's vehicles aren't made as well as they were years ago. This means that there are minor and major repairs that are necessitated by this lack of hardy craftsmanship- repairs that can cost from in the hundreds to the thousands, depending on how severe the issue. The average individual isn't able to come up with these sums of money at the drop of a hat, and additionally, can't afford to be without their vehicle while it is out of commission. All in all, extended auto warranties are a great buy for those who want to protect their best interests financially. While this sort of product can be purchased from a dealership, one can normally find better pricing by seeking out a third party warranty company. Beyond being cheaper in price, the payment options are typically more flexible, and the number of customizable features of third party coverage greatly outnumber those received from coverage bought from the manufacturer. |
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