I want to know whether to continue my extended warranty. My car has 92,000 miles. The warranty offered is approx. $200.00 per year with $100.00 deductible only on first claim by Warranty Corp. of Mobile, AL.
The price of this service contract seems extremely low. Be sure you read the fine print and know exactly what is covered.
The most expensive repairs are to the power train (engine, transmission, drive train) and if all of this is covered it may be worth purchasing this service contract (you are not extending your warranty, that is only issued by the factory) You are considering purchasing insurance against future service bills with your vehicle.
It is most likely that this type of contract will not cover things such as air conditioning, cruise controls, brakes, windshield wiper motors, etc. etc. etc. Be sure you know the limitations and exclusions.
This is a buyer beware situation and it deserves your time to read the contract thoroughly and ask any and all questions before you sign the paperwork.
〉 Answered on Jan 26th, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)