Demerits of Dealer-Issued Extended Warranty

It cannot be denied that the importance and popularity of extended auto-warranty has been spread all over the world.  To keep cars intact from any sort of damage it is necessary to purchase an extended auto-warranty. Now, there is one question whether it is urgent to purchase an extended auto warranty issued by dealers.

It is unanimously supported that if anyone wants to buy a good warranty, he should go to the original seller of the warranty.  Reason is simple. Most car dealers have the tendency to resell other warranties of the original companies. For this particular reason, they charge additional fees.  With cost range of $500 and $1500, a contract service in this respect can be distributed to the customers. So to avoid additional financial burden and charges, it is better to buy extended warranties from original companies. In fact, overpayment for a third party used car warranty is not bad in the sense if the third party issued for this contract.

There is no denying the fact that there are some dealers who prefer to issue extended auto warranties for their customers.  They can do that but there are some restrictions on their plans. One major problem is that the chance of getting repairing benefit and maintenance facility for cars in any place is impossible. They only allow the car owners to get benefit and service at their mentioned authorized dealer shops. Secondly the repairing coverage over the covered worn part only at the time of emergency is made effective they can provide this servicing facility. Furthermore, they often take higher charge than local motor mechanics.

So far as dealership issued auto warranty is concerned, there are other big drawbacks such as if any one go beyond the certain extension driving his, and he must apply for a new auto warranty. Secondly, if the car experiences damage or any technical snarl going far away, he will be at risk in the absence of any reimbursement coverage. However, in spite of having a reimbursement option open, he may be put under obligation to bear repairing expenses. Thirdly, if a dealer declares financial crunch on his business, a buyer will spend a lot of time to get money back. In the case of dissatisfaction over their service, one cannot do anything to get out of contract until the payment is made. 

Last but not the least, one question may be raised why the buyer proceeds to take such risky dealership extended auto-warranty plan. There is no specific reason however it can be said that often buyers are not well acquainted with the pros and cons of this warranty plan and lastly, it is a habit that customers do not feel it urgent to purchase extended auto-warranty prior to go to dealers. After consulting the sales representatives regarding the utility of buying extended auto warranty, they prefer to collect this dealership extended auto-warranty and in this way they inadvertently make a blunder by purchasing it.