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1. Is An Extended Car Warranty Worth It?

With any important personal asset, you want to make sure you are covered if things go wrong. Your car is one of your biggest assets. So is an extended car warranty worth it? The answer might surprise you.

New Car Extended Warranties

New cars come with a factory warranty. This covers specific mechanical breakdowns during a limited amount of time. Once the warranty expires, all repair costs must be paid for by the car owner. Extended vehicle protection plans can be purchased at any time, even for brand new cars. The reason you might consider extra coverage is because factory plans often do not include things like round-the-clock roadside assistance, towing, and rental car while repairs are being completed.

Also, think about timing. As a car ages, the cost of extended protection goes up. So if you buy earlier, you will pay less for the extended warranty.

Used Car Extended Warranties

For used cars with an expired manufacturer warranty, extended vehicle protection picks up where the factory warranty ended. Coverage is similar to factory warranties, and the companies that provide extended protection are often the same companies that provide the original factory warranties.

Used cars are more likely to have frequent and/or costly breakdowns. With extended vehicle protection, you can rest easy knowing that a factory-like warranty is covering your auto asset.

Finally, used car extended warranties can opt for the same benefits as new car plans such as 24/7 roadside assistance and car rental. You can also use the licensed repair facility of your choice – including dealerships or personal mechanics.

Plans Are Transferable

Another advantage to extended warranties is that they are transferable for a $40-50 fee. This can improve the chances of selling any car at a higher price.

Risks Of Going Without Coverage

There is no law requiring extended vehicle coverage, but there is a financial risk. An extended warranty is similar to an insurance policy. So if major repairs are needed, you could end up saving thousands of dollars. Also, the cost of many smaller repairs can add up over time. These costs are covered within the terms of your protection plan.

Doesn’t It Take A Lot Of Time?

If you had to go out on your own comparing plans and costs, it could take up a lot of your valuable time. Due to the popularity of extended vehicle protection, companies like AHW Direct have developed extended warranty marketplaces. Various providers compete – driving prices downward – to offer you the best auto protection deals.

Is It Safe?

Unfortunately, there are scam artists out there who try to take advantage of unwary car owners. However, with AHW Direct you know you are dealing with a company that’s been in business for over 14 years and rated as A+ by the BBB.

Bottom Line: Is It Worth It?

The answer really depends on you. Do you protect your home with homeowner’s insurance? Do you protect the asset of your health with health insurance? By the same logic, you might decide a large asset – like your car – deserves protection from risk through an extended vehicle protection plan.

Don’t Put It Off

If you think your car deserves protection, ask for a free online quote today.


2. Do I Need An Extended Warranty If I Lease A Car?

buying a used carMany drivers these days prefer leasing their vehicle. If the lease term stays within the factory warranty term, then extended coverage might not be needed. But many leaseholders are extending their terms longer than ever. There’s been a recent 18 percent rise in long term leases, and nearly a quarter of all auto lease contracts are over three years old. In these cases, an extended warranty can deflect high repair costs.

Leasing a car for more than three years? Your factory warranty might be expired. Get a free extended warranty quote from AHW Direct today.

Leasing And Extended Warranties

If you lease a new car, the factory warranty covers any mechanical repair not due to accident, abuse, or normal wear-and-tear. The factory warranty is a coverage plan provided by the original manufacturer of the car (Ford, BMW, Toyota, etc.).

Once the factory warranty expires, all repairs are paid for out of your pocket. Some drivers erroneously assume that leasing automatically provides vehicle protection as well. But lease and warranty terms are completely independent of each other.

Let’s say your lease has a three year term and the vehicle’s factory warranty term is also three years. This means that during the time you hold the lease, your repairs are covered. But what happens if you renew your lease? The factory warranty is not automatically renewed. In fact, factory warranties can never be renewed. Your best option? Get an extended vehicle protection plan.

Extended Vehicle Protection

These plans are very similar to factory warranties. Extended auto warranties also cover the engine, transmission, drive components, and many other parts. Some extended warranty plans also cover wear-and-tear which is usually not covered by factory warranties.

Some other advantages of extended warranties are:

  • No haggling about repair prices. Warranty providers pay directly to the repair shop.
  • Cost of warranty, in some cases, is less than the out of pocket cost to repair
  • Rental car provided while repairs are being performed
  • Roadside assistance and trip interruption benefits
  • Protection against the rising cost of auto parts
  • Freedom to take your vehicle to any licensed repair facility

It’s Not Insurance, But It Keeps You Covered

Extended auto warranties are not car insurance, but they can be thought of as protection against unexpected breakdown costs. If you are extending your lease, your vehicle is older and more likely to breakdown. An extended vehicle protection plan makes sure these repair costs are covered.

Dealer Extended Warranties

If you leased from a car dealer, they might try to sell you an extended warranty when the factory warranty expires. In many cases, dealer based warranties are more expensive. It pays to shop around, and don’t feel pressured to buy vehicle protection from the dealer just because they provide the vehicle leasing contract.

Protect yourself from unexpected car repair costs. Get a free extended vehicle protection plan quote from AHW Direct now.

3. When Buying A Used Car With High Mileage Makes Senseused car lot

An Audi A8 for less than $19,000? Too good to be true? Have you always wanted a luxury car but thought you could never afford it? Well, buying a used car with high mileage might be the answer. Surprisingly, you can find great deals that don’t cost more than other options. Let’s see why.

Serious Engineering Can Be Yours

Upper end automakers are not looking for buyers on a budget. For this reason, the engineering, parts, paint and technology are all very high quality. Luxury car buyers aren’t dumb, and they pay top dollar for things that are built well.

However, luxury car owners often want to stay in the latest model. The turnover for upper end models can be fast. So if you find one with a lot of miles – it might actually be a great deal. On the other hand, a less expensive car with lower mileage might cost you more in repairs in the long run.

Repairs Are Inevitable

No matter what the make, a used car has more maintenance issues than a new one. One way to address this is to pay out-of-pocket for each repair. A better option might be to buy an extended service agreement which resembles an original factory warranty. These plans cover most repairs and will protect you in the event that more repairs than normal are required. Extended warranties are a great hedge against high mileage maintenance risk.

New Luxury Costs Are Lower Than You Think

Some new luxury car sticker prices start at $30,000 or less. So a used one with high mileage might be surprisingly affordable.

In the example above, the Audi A8 was a 2007 with about 108,000 miles on it. That’s 15,000 per year which is about average. The used A8 price of $19,000 is quite a bit lower than a new model which costs over $75,000. Average driving and regular maintenance on a vehicle with superior parts can be a great used car option.

Ask For Maintenance Records

The luxury car owner often keeps meticulous records. This is because strict warranty agreements require that the vehicle be serviced at an official dealer. Everything is on-record so you can check how well the car was cared for.

Check For Exhaust Smoke, Look Closely At The Interior

When you go to see the car if you see any smoke coming from the exhaust, consider looking elsewhere. Blue smoke can mean that the engine is burning oil. Fuel system malfunction often produces black smoke. Finally, white smoke comes from anti-freeze burn due to a head gasket problem.

Look for other details. If a car has high mileage, but the paint and interior look great, this could mean the owner took good care of the car.

Conclusion

If you are looking to buy used and want luxury, consider looking at models with high mileage. You might find a great deal that others pass by. If you add in the protection of an extended warranty, you could end up with a very solid used car investment.

4. What Are The Most Expensive Car Repairs?

mechanic shopAmericans spend up to 1.6% of their before tax income on car maintenance and repair. And this may increase, since the average US household vehicle is getting older. So when it comes to car repair, what are some of the most expensive breakdowns? Let’s find out.

Pay for the high cost of repairs with an extended car warranty. Get a free quote from AHW Direct today.

Engine Replacement Or Rebuild

Some call it engine replacement, other’s an engine overhaul. Whatever its name, it’s very expensive and usually means some kind of mechanical catastrophe has occurred. In most cases, severe engine damage is caused by overheating and sometimes this is due to the lack  of coolant or a water pump failure.

If the engine overheats, the engine block can crack along with other problems. A repair may be possible, but typically a full overhaul or replacement is required.

Total cost = $7,500 – $8,000 (or more)

Steering Column Replacement

If your steering wheel tilt doesn’t lock in place, it could be due to a steering column failure. Other symptoms to watch out for are creaking, clunking, or clicking when you turn the wheel. Also if the steering doesn’t return to center after exiting a turn, you may need a steering column replacement.

Total cost = $6,000 – $6,500

Hybrid Battery Replacement

Even though hybrid car batteries are meant to last for a long time, that doesn’t mean they last forever. At first, you might notice a dashboard warning light coming on. Or maybe the gas engine revs higher than normal as it tries to compensate for the weak battery. You may also notice excessive battery cooling fan noise as the system attempts to protect the battery.

Other common signs to watch for are a lack of ability to hold a charge, poor power, or low gas mileage. A worn out hybrid battery requires replacement.

Total cost = $4,000 – $5,000

Transmission Assembly Repair

You may see a transmission fluid leak at first, and this could be caused by worn seals or gaskets, damaged housings, or a loose transmission oil pan. If detected early, these repairs are less costly. But, if you smell burning transmission fluid, things are likely getting worse. Other symptoms include hesitant, uneven, rough, or noisy shifting.

Today’s automatic transmission systems are fully computerized and complex. If not detected early, repair costs can be quite high.

Total cost = $3,500 – $4,000

Camshaft Replacement

When your camshaft fails you may notice a loss of engine power or engine misfire. The car might even shut off unexpectedly while driving. For those that change their own oil, you could see an odd metallic flake or shimmer when the oil is in the drain pan.

Camshaft replacement is labor intensive, taking up to 12 hours or more. Regular oil changes and maintenance go a long way in preventing camshaft failure.

Total cost = $1,500 – $3,000

Protection Against High Repair Costs

Unexpected and costly repairs are more likely to occur in older vehicles. One of the best ways to cover the cost of repairs is with an extended car warranty. These plans pay for unforeseen breakdowns in a way nearly identical to factory warranties.

Cover expensive car repairs with an extended car warranty. Get a free quote from AHW Direct now.

5. How Much Does A Car Warranty Cost

cup of coffeeYour car’s in the shop. You anxiously wait for the mechanic to call. How much is it going to cost this time?

If this scenario sounds all too familiar, you might consider covering your vehicle with an extended car warranty. But how much does a car warranty cost?

Looking for a reliable car warranty? Get a free quote from AHW Direct today.

Quick Car Warranty Basics

An extended car warranty is a plan that pays for unexpected car repairs. This coverage is similar to a factory warranty. If your car breaks down, the bill is paid after any deductible. The best plans pay the repair shop directly, so there’s minimal hassle.

These kinds of plans give you peace of mind whenever your car has an unforeseen mechanical failure. In some cases, repairs can cost hundreds or even thousands of dollars. An extended car warranty can cover these costs.

How Much Does A Car Warranty Cost Per Day?

For about the cost of a cup of coffee or a soft drink per day, you can get extended vehicle coverage. So if you skip your third Caffe Latte Grande each afternoon, you’ll have more than enough to pay for car repair coverage.

An even better idea is to quit smoking and use the money saved to protect your car. For the cost of only half a pack of cigarettes per day, you can be covered.

How Much Does A Car Warranty Cost Per Week?

A weekly visit to a favorite fast food joint for a family of four once a week will cost more than extended vehicle coverage. Why not skip the junk food, and cover your car repairs instead? Eating at home is healthier anyway.

Still getting the daily paper or weekly magazine delivered at home? Why not go digital and get the same content for free? You’ll be helping the environment, and the money you save could protect your car when it breaks down unexpectedly next time.

How Much Does A Car Warranty Cost Per Month?

For the cost of your monthly cable TV subscription, you could pay for extended vehicle protection. Many online services are now available, offering programing at a fraction of the price of cable. Think about services such as Hulu, YouTube, Netflix, Amazon Prime, and Roku to satisfy your TV needs at a much lower rate or for free.

If you swap cell phone plans, you might end up saving enough to pay for a car warranty. As more online services offer free calling options (think FaceTime and Skype) you may no longer need a complex phone plan. Given that WiFi is nearly everywhere, some people even ditch their phone plans altogether. Remember, it wasn’t that long ago when nobody even had cell phone, and we still survived somehow.

Car repairs can be expensive. Get the car warranty coverage you need. Get a free quote from AHW Direct now.

Content sourced from Auto Warranty Articles by Carchex



Home Warranties 101 – Buy Only The Best

homewarranty vs homeinsuranceDon’t confuse home warranties with home insurance!!

–> Home owner’s insurance is for the things that MIGHT happen, like fires, floods, burglary theft, or hail damage.

–> Home Warranties are for the things that WILL happen, such as broken refrigerators, faulty clothes washer or dryer, AC unit dying in the summer, Furnace not heating in the winter, and even smaller things like garage door openers and sump pumps!

What does a home warranty cover?

Home warranty coverage will vary according to the type of plan you choose and whether your home is a new build or dozens of years old.

For new homes, a home warranty from your builder typically covers any big structural defects for as long as a decade. Heating and air conditioning, drywall, paint, appliances, plumbing, and electrical work may be covered anywhere from six months to two years.

For existing homes, warranties typically fall into a few categories:

  • Appliance-based plans: These typically cover appliances including your range, oven, built-in microwave, dishwasher, washers, and dryers. Refrigerators may or may not be covered.
  • Systems-based plans: These plans focus on heat, air-conditioning, plumbing, electric, and water heaters.
  • Hybrid plans: As their name suggests, hybrid plans combine appliance and systems coverage, but are pricier because they are more comprehensive.
  • Add-ons: Most home warranty companies give you the option to add on coverage for special items not covered under typical plans. Common add-ons include pools, wells, whirlpools, spas, and septic systems.

My husband and I had a new home built that we moved into a few years ago, and we benefited greatly from our home warranty. After living in the home for almost a year, we presented our builder with a list of issues to rectify before our warranty was up.

It included numerous drywall fixes, interior and exterior paint touch-ups, the repair of a wobbly toilet, and a costly valve replacement on our downstairs air-conditioning unit. The air-conditioning repair alone would have been several hundred dollars without the home warranty.

Home warranty terms: Reading the fine print

There’s always a chance your repair won’t be covered, which is a common complaint among home-warranty customers. Of course, you can help guard against this scenario by reading your policy contract extremely carefully. Here are a few things to look for:

  • Coverage limits: You will select which appliances or systems you want covered, but you’ll still need to look very carefully at exclusions. For instance, your garbage disposal will be covered, but not for damage if something other than food is stuffed down it. Your clothes washer will be covered, but its leaky seal is not. Your refrigerator is covered, but only if it’s actually in your kitchen, and specifics like your ice maker may be excluded.
  • Unexpected fixes only: An important point to keep in mind, especially for older homes, is that home warranties are typically intended to cover unexpected fixes. Many plans won’t cover routine service or problems that are the direct result of incomplete or improper maintenance.
  • No pre-existing conditions: Your home warranty probably won’t cover any problem that exists at the time you purchase your policy. So if you’re hoping to fix your ancient, already-inoperable stove with home warranty coverage, you’ll be out of luck.
  • Waiting period: There may be a period of 15 or 30 days before your coverage takes effect. This may be waived if you can prove you had previous home insurance with no lapse in coverage, and it probably won’t be the case if you’re buying a home that’s already covered.
  • Service restrictions: If you hire a service provider on your own instead of going through your home warranty company, you probably won’t be reimbursed for that work.

How much does a home warranty cost?

how much is a home warrantyThe price of a home warranty depends on what type of property you need covered — for instance, whether you live in a condo or a single-family home — and whether you stick with a basic plan or buy an upgraded version.

Basic plans typically range from $450 to $600 a year, according to Angie’s List; souped-up plans can cost as much as $900 per year. On top of the cost of the plan, you will also have to pay a service fee or deductible of roughly $50 to $125 each time you need something fixed.

If you’re buying a newly built home, the cost of your home warranty may be rolled into the purchase price of your home. That was the case when I moved into my new home, and it turned out to be a nice perk.

You may also find that if you’re buying an existing home, the seller or real-estate agent may throw in a home warranty plan to sweeten the deal — if this isn’t already a part of the offer, see if you can get it thrown in.

How do I get something fixed under my home warranty?

The home warranty company will arrange repairs on your behalf after you pay any necessary service fees or deductibles. With rare exceptions, you do not get to choose a company to do the work — the home warranty company already has preferred vendors.

You should also understand that a home warranty company is obligated only to make sure covered items are in working order. They don’t have to replace your aging relic of a furnace, even if it’s long past its prime. Same with that funky avocado stove from the early ’80s: Don’t expect your home warranty company to swap it out for a brand-new stainless-steel model.

Do I Need a Home Warranty?

is home warranty worth itFor most homebuyers, home warranties are about peace of mind. For some, that’s reason enough to fork over a few hundred bucks. But like any financial product, home warranties have significant pros and cons. Read on to decide whether a home warranty is right for you.

When to buy a home warranty

A home warranty can be a big help if you don’t have a ton of cash left in savings, a particularly common scenario for homebuyers who just plunked down thousands for a down payment, closing costs, and other incidentals. With a home warranty, one big, unforeseen problem may only cost you a small service fee to fix as opposed to shelling out hundreds.

A reputable home warranty company can also eliminate frustration you may feel as you attempt to make repairs yourself or find someone else to do them. So, if you’re the type of person who likes to make one call and leave the rest up to the experts, a home warranty can ease some stress.

Finally, a home warranty can sweeten the pot for potential buyers if you’re selling your home. One recent study found that homes with a warranty sold an average of 11 days faster and for $2,300 more than those without a warranty. So if it’s still a buyer’s market in your area, spending a few hundred dollars on a home warranty that you can transfer to the new owners could help give potential buyers the push they need.

When to skip a home warranty

There’s a good chance you won’t need to request any repairs from your home warranty company, which means you’re out at least a few hundred dollars. And if you do need something fixed, you will still be paying a service fee or deductible on top of the initial price of your plan.

So if you don’t like the idea that you could potentially be paying for peace of mind — and that’s it — you’re probably best skipping the home warranty.

You may also not like the repair company your home warranty company sends to do the work, and you’ll have little control over the speed with which the repairs are done. So if you’re knowledgeable about home repairs, picky about who does them, or even handy yourself, a home warranty may cause more frustration than it’s worth.

In my case, it’s unlikely I would have purchased a home warranty had our builder not included one in our home’s purchase price. Though we did end up using the warranty for a costly fix, the chance of major breakdowns is low in a newer home. And as always, you can set aside money in your emergency fund (where it will earn interest, too) to cover unanticipated fixes.

To help homeowners determine if you need a home warranty for your appliance, we created the following table that lists high ticket items along with their average life expectancy, replacement costs, and repair costs. Of course, the costs are dependent on factors such as brand, type of repair, and location, but this will give you a good idea of where your appliances stand. All costs are national averages.

Appliance
Life Expectancy (Years)
Average Replacement Cost
Average Repair Cost
Central Air Conditioning 7-15 $5233 $318
Furnace 15-25 $3881 $267
Range/Oven 14 $1932 $150
Water Heater 6-12 $1122 $480
Dishwasher 9 $898 $120
Refrigerator 9-13 $1624 $300
Washing Machine 5-15 $1153 $310
Dryer 13 $1125 $250
Garage Door Opener (per door) 10 – 15 $318 $195

Questions to Ask When Shopping for Your Home Warranty

Home warranty companies can be tricky to evaluate online. Reviews tend to trend suspiciously positive or frighteningly negative. For that reason, while I considered online reviews while making my picks, I gave them less weight than other factors. Here are all the criteria I considered when looking for the best home warranty:

  • Number of coverage options: It’s standard for home warranty companies to offer two coverage levels: a basic plan that covers appliances, and an enhanced plan that covers systems such as heating and plumbing. If a company offers a third hybrid plan, I considered that a plus. A customizable plan that allows you to pick the appliances or systems you want covered was an even bigger perk. Finally, the best companies offered a number of specialized add-ons for features such as pools, wells, and septic systems.
  • Customizable service fees or deductibles: Some companies allow you to customize the amount you pay when you request service. This also helps you control the cost of your plan — if you choose a higher service fee, your plan costs less overall.
  • Around-the-clock claims departments: If your furnace goes cold at 2 a.m. on a frigid Saturday in January, you probably won’t want to wait until 9 a.m. on Monday to report it. The longer you have to wait to report a problem, the longer you’ll wait for a resolution.
  • No exclusions on older homes and appliances: Buying an older home may be your primary motivator in purchasing a home warranty. The best home warranty companies don’t shun your business simply because there’s a greater chance you’ll make a claim.
  • Ability to easily receive a quote and purchase plan online: The best home warranty companies make receiving a quote very easy. During my evaluations, it had to be clear where I needed to start the quote process. And given that home warranties don’t vary much from person to person, the less personal information I had to enter, the better.
  • Solid reviews relative to the competition: Again, reviews are hard to evaluate for home warranty companies, so I based my evaluation on how they fared relative to competitors on particular sites such as Consumer Affairs, Home Warranty Reviews, and Yelp. A good rating with the Better Business Bureau was a bonus. Remember, the vast majority of negative reviews stem from customers who misunderstand their home warranty contract. Which leads me to my next consideration…
  • Sample contracts that are easy to find and view: Before you purchase a home warranty, it’s essential to read the fine print. That means reading the entire contract before you fork over your money. Otherwise, you risk joining the legions of frustrated customers who thought they were getting something other than what their contract specified.

Source: http://www.thesimpledollar.com/best-home-warranty/