Winning With Extended Auto Warranties

(ARA) - It seems like it never fails -- as soon as your car's odometer rolls one mile past the warranty's mileage limit, something goes wrong.

While waiting for Detroit and import manufacturers to produce an unbreakable car, many consumers are opting for extended auto warranties that protect their vehicles and their pocketbooks. "It's almost always cheaper to repair the car you have than it would be to buy another," says Jason Goldsmith, CEO of CARCHEX.com, an online company that helps connect consumers with car warranty providers.

"Extended warranties (also know as vehicle service contracts) are for any vehicle owner who wants to ensure their vehicle stays in the best mechanical condition and who wants peace of mind that they are protected against increasingly expensive or unforeseen repairs," he adds.

A warranty can save you thousands on auto repairs and unexpected out-of-pocket expenses, increase the resale value of your vehicle (since warranties are usually transferable to new owners), and provide 24-hour roadside assistance, rental benefits, extended towing benefits and your choice of repair shop.

"Warranties are particularly useful for people on a fixed income who would have difficulty paying for a costly, unexpected repair," says Goldsmith.

Warranty prices vary depending on the year, make, model and mileage of the vehicle, as well as the level of coverage desired. Generally, however, you can expect to pay about $1,850 for a warranty that mirrors the manufacturer's coverage of seven years and 100,000 miles on a standard vehicle. "The goal of buying a warranty is to get the most comprehensive coverage at the most competitive price," Goldsmith says. "Keep in mind that extended warranties cost less the earlier you buy them. The cost for a good warranty rises as your vehicle ages and accrues mileage."

An extended warranty can provide coverage for common costly repairs -- from transmission woes to emissions and electronics. You can also opt for coverage that will cover more unusual items, such as GPS and even seat repairs. "For example, a seat motor for a 2004 Toyota Camry will cost around $4,000 to replace because of the side airbags included in the seat," says Goldsmith. "A good warranty can cover that expense."

The Internet has made it easier than ever to find great auto warranty deals. To take a look at options for extended warranties for your car -- and some peace of mind for you -- visit carchex.com.

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