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September 19, 2008, Newsletter Issue #160: New Cars and Extended Warranties
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Tip of the Week
If you are closing the deal on a new car, you may be surprised when the dealer tries to sell you an extended warranty. After all, most new cars come with excellent warranties. Extended warranties generally don't kick in until the new car warranty expires, but that's where the rub comes in.
If you have a 36 month/36,000 mile warranty but you put 20,000 miles a year on your car commuting to work, your warranty is going to expire in less than two years. Does that mean you should buy what the dealer is selling? Not unless you like paying twice as much as you need to for services.
*You can spend 15 minutes online and hook yourself up with a top-rated extended car warranty with a warranty company such as WarrantyDirect.com or 1SourceAutoWarranty.com for as much as half the cost the dealer would charge.
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