MYTH
All extended warranties are exactly the same so just get the cheapest coverage you can find and you’ll be covered.
FACT
Extended warranties come in all shapes and sizes with some being great and others almost completely useless. You need to be able to see the contract to check for exclusion clauses, deductibles, and benefits to determine whether the policy will actually help you when you need it most. Hint: If you find a warranty that lists "covered items" rather than the exclusions, walk away because this type of policy will almost always be a waste of time and money!
MYTH
The dealer or manufacturer is the best place to buy an extended warranty because it’s in their best interest to see me happy.
FACT
Yes, this is true but its also true that dealers may also be driven by sales or commissions goals which may keep them from being objective or offering the best coverage to fit your needs. What you want is the most complete, reliable, and competitively priced coverage you can find that suits your needs - no matter who happens to be selling it.
MYTH
I don't need to buy an extended vehicle warranty because my auto is still covered under the manufacturer's warranty.
FACT
Yes, you may be covered under the manufacturer’s warranty today but unless you absolutely KNOW that you will be getting a new vehicle before it expires - the simple fact is that when it comes to extended warranties, the newer your vehicle, the lower your rates will be. Many think they are buying "double coverage" when getting an extended warranty while still under the manufacturer’s warranty, but you are actually getting to lock in rates now and contain costs on the extended warranty. Plus, many plans have benefits and coverage beyond what the manufacturer offers.
MYTH
You must purchase an extended vehicle warranty at the time of purchase or you won’t qualify to receive financing.
FACT
This is anything but the truth because qualifying for financing has nothing to do with buying extended warranty coverage nor does it influence the decision to give you credit or not. Qualifying for credit is based upon the purchase price, your income, down payment/trade - in, and credit score - not your extended warranty purchase.
MYTH
A "mechanical breakdown" warranty is better than a "wear and tear" warranty.
FACT
Actually, it’s the complete opposite because the best warranties offer wear and tear. This is simply superior protection because "mechanical breakdowns" are often considered defective parts or workmanship whereas wear and tear includes parts that are known to wear out and need replacing over time. For older vehicles especially, wear and tear is definitely the coverage you would like to see in your extended warranty coverage - but as always, be sure to read the fine print!
MYTH
Extended auto warranties mean you never have to worry about your vehicle while covered.
FACT
While this would be nice, no warranty exempts you from performing the normal care and maintenance required to keep it in good working condition. Regular oil/fluid changes, brakes, tires, and minor components all require regular service as outlined in the Owner’s Manual or other parts and components will wear and break before their time. However, a good extended warranty policy will give you peace of mind knowing that anything covered will be paid for with little to no out of pocket expenses.