Saving your family money has become both an art form and a science. For many of us, it is full time job, often on top of several other jobs.
That brand new SUV that you have been eyeing may need to wait a few months until the economy shakes out. One way that you can protect yourself from budget-busting repair expenses is by purchasing an extended warranty on a great used vehicle.
But how do you tell the good guys from the not-so-good guys? Here are things to look for when considering a contract:
Must have #1: A physical address
You’re considering spending $1000 – $2000 or more with a company that won’t tell you where they are located? This one is so basic it shouldn’t need to be here, but it will weed out 80-90% of website companies. When you do get the address, Google it. If they’re stable and legitimate, the address should bring up the company name. At EasyCare, an industry leader headquartered here in Georgia, we Googled one company and found out that the address was actually a florist.
Must have #2: A Better Business Bureau Ranking
Any reputable Extended Warranty provider will at least have a rating, preferably an A or B. A high ranking from the Better Business Bureau is far more telling than “testimonials” or other “marketing” materials on the internet – these can be manipulated by the companies. For example, EasyCare has an A+ rating from the BBB and has won Torch awards for service. That says a lot about their performance with consumers.
Must have #3: 100% Money Back Guarantee on your Auto Warranty
If you are unhappy with your auto warranty, have not made any claims, they should refund 100% before 30 or 60 days.
Must have #4 Transferability
Some auto warranties end when you sell your car, so make sure that you are purchasing a transferable extended auto warranty. This feature can help you sell your car and get you a better asking price when that time comes.
Must have #5: See your sample contract
You should be able to see YOUR contract before you commit to buy it, reflecting the specific coverage quoted to YOU. A red flag that you’re dealing with an unscrupulous company is their trying to trick you by sending an aggregated copy of different levels of coverage. Ask for the policy booklet. If the salesman says it will come in the mail after you pay for it, find another company to deal with.
You want to keep your vehicle longer, but also drive it safely and stay current with repairs too. Purchasing an extended warranty for your car can save you from budget-busting expensive repairs bills and provide peace of mind.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.
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oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation. . Unless sources are noted, the information is the opinion of the author.
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