Extended Car Warranties Increase Trade-in Value
 Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
A major part of a vehicle’s trade-in value depends on how desirable the vehicle is on the used car market. If the vehicle is in good condition, has a clean history, and few owners, it is more likely to be sold on the dealer’s used car lot for a tidy profit. The most important consideration to practically every used car buyer is how well and frequently the vehicle has been serviced. Because their owners are not paying the repair bills, vehicles with an extended car warranty are significantly better serviced than vehicles without one.
When an appraiser is determining the value of a trade-in, whether the vehicle has been serviced regularly, and has had needed repairs performed, are big factors. Vehicles with an auto warranty are far and away the most mechanically sound vehicles on the road, because their owners need not wait to save money before having the repairs performed. Those are exactly the types of vehicles a dealer wants on his lot. The less a car buyer has to worry about the reliability of a used car, the easier the sale.
To keep the value of their vehicle has high as possible, thousands of people invest in extended warranties for their automobiles. Companies such as AA Auto Protection specialize in offering hundreds of plans at affordable prices. Many drivers are finding that the cost of their car warranty is returned to them in the increased value of their vehicles at the time of trade-in. With the dealer getting a desirable trade, the owner getting increased value, and the potential new owner getting a well-serviced vehicle, the extended car warranty is a key part of this win-win-win situation.
7/11/2010 12:09:19 PM
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