Get Educated on New Car Warranties Before You Buy

How do you get the best deal on a new car warranty the dealer wants to push on you? Get online and do your homework. A recent report shows most customers just don't know enough, or educate themselves enough to get the best deal on a new car warranty. Some folks don't even know the terms and cost of their new car warranty are negotiable. A good tip to remember when you're buying a new car at a dealership is everything is negotiable. Everything. Even new car warranties.

Be Ready For Confusing Terminology

When a dealership tries to sell you a new car and a warranty, they will sometimes use confusing terms. The thing you have to remember here is that a new car warranty is actually an insurance policy for car repairs. Basically, you pay a large premium, usually a lump sum at the time you purchase the car. When your car breaks down, the company who backs the policy pays for the necessary repairs. The extent of repairs, what you will pay (if anything) and how much the dealership will pay for those repairs is determined by the terms of the policy, or warranty.

Be  Ready For the Hard Sell

Because new car warranties are basically a profit center for auto dealerships, they're going to push real hard to get you to buy the most expensive coverage. You'll be escorted to a small, stuffy room in the back of the dealership where the finance guy is gonna try and sell you everything from various levels of undercoating to a top-of-the-line alarm system - and of course, the warranty. If you feel you are being pressured to buy a warranty, that's probably a good indicator that you should step back, review it carefully, perhaps not buy it at all. Trust your gut. You don't have to buy the contract the same day you buy the car. Take time to carefully review the terms and research the provider of the contract, especially if the warranty is from a third party provider. Ask your friends and others who don't have an interest in the deal. Call around to other dealers and check to see what their warranties offer and for how much.

Take Your Time, Step Back, Then Make an Offer

Some warranties offer a 30-day trial period for new car buyers to look over the contract and offer a full refund should you decide not to buy the warranty. You can take all the time you need to make up your mind. In some areas of the U.S., buyers can take up to a year to purchase a new car warranty (Check your local laws). Don't let the salespeople or their minions pressure you unnecessarily. Take time to talk to the dealership about the details of the warranty, find out what their offer is, then do some research and comparison shopping. When you go back after you've done all your homework, ask them to make you an offer. Then counter with half and let them come back with their best offer. If the price of the new car warranty is $900, offer them $450. Continue until you get the best possible price. Remember, with car dealerships, everything is negotiable.

Before you buy your next new car, make sure you do not buy a service contract or warranty if the dealership will not provide a copy of the contract which details the terms and conditions. Take time to carefully review the terms and research the provider of the contract, especially if the warranty is from a third party provider. Prepare for the onslaught, educate yourself, shop around for the best deal. Who knows, you may save yourself a pretty big chunk of change when you buy your next new car and warranty.