Available for both new and used vehicles, extended warranties are normally pitched as extra security for car buyers, reducing the risk of expensive repairs that might not be covered by the factory warranty. Indeed, peace of mind was the most common reason given by our survey respondents for purchasing the coverage, and for many that may be a sufficient motive.
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But one of the priciest products offered will likely be the extended warranty for the car itself. Extended warranties, also known as "service contracts," can provide peace of mind to some car buyers. Car dealerships like them because they are an additional profit center for the business.
These services repeatedly use "extended vehicle warranties" and "warranty" for marketing purposes. As such, I am using these terms similarly. However, each service has disclaimers, usually found at the bottom of each page, making the distinction between the legal definition of an extended warranty and a vehicle service contract.
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About 30 percent of used-car purchasers who had owned their car for a year or less and purchased an extended warranty to cover it needed to use that warranty in the first year of ownership.
Best extended warranties for used cars Endurance Auto Warranty, CarChex and Protect My Car all offer extended auto warranty packages for high-mileage cars that include 24/7 roadside assistance. Their extended auto warranties are also transferable to a new owner, which might increase the value of your car.
Buyers will almost always be offered an extended warranty of some kind. They go by a lot of names, including extended service contract, extended warranties, mechanical breakdown insurance, service agreements, and vehicle protection plans.
When the warranty expires, or when purchasing a used vehicle, drivers can opt for the security of an extended warranty from an independent provider. Car warranties are best for people unable to cover the large potential costs associated with a sudden repair, which can amount to thousands of dollars.
I would think that a day after the purchase of a car you should be able to cancel the warranty agreement. I inquire to your State Department of Commerce, Local Chamber of Commerce, Department of Insurance or Department of Consumer Protection.