Surge in used car sales may mean more auto warranties
 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.
With reports of more people purchasing used cars these days, interest in vehicle warranties may increase as a way to offset any repair costs.
Art Garcia, who has worked at Warner Auto Sales in Washington state for 15 years, told CBS affiliate KEPR that thanks to tax return season, it may be the perfect time for people to buy a used car.
"Business is picking up… it's tax season and a lot of people are coming in with their tax dollars and coming in and buying a lot of these used cars," Garcia said. "We're having one of the best months we've had here for a while."
Garcia added that Warner experienced a 15 percent spike in sales, which helped the business post its best sales month in its history.
While interest in used cars may be spiking, car owners should also think of the near future, specifically about car maintenance, as well as repairs. Buying a used car usually means the original dealer warranty has expired or is now voided. Some owners have purchased car warranties as way to gain added financial protection for their new vehicle.
3/1/2010 10:14:17 PM
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