Many businesses are selling the best extended car warranties, and you should know your options well to decide upon how to get the deal suitable for your needs.
There are two markets for purchasing extended car warranties- direct sellers being the first one. Direct sellers are warranty companies that sell direct to consumers and often use other sales channels too. For example, they may sell warranties using car dealerships, banks, credit unions and even warranty brokers. Then there are some warranty companies that do not sell direct to consumers, they only use middlemen to sell their warranties.
Banks, credit unions and auto dealerships offer extended car warranties as an add-on to your loan transaction. While, brokers are in business just to sell warranties for the warranty companies. All of these businesses serve as middleman for extended car warranties offering another sales channel to warranty companies. Brokers, specifically, run aggressive marketing campaigns to attract customers for example using letters or emails, television or radio ads etc.
Undoubtedly the best place to buy extended car warranties is directly from the warranty company. Many people by-pass this route as they do not perform the necessary research to find direct sellers. Perhaps, they are not easy to find as they usually don’t advertise and aren’t like your household auto insurance names. Although some warranty companies do sell direct to consumers, they are somehow lazy about marketing themselves and rather rely on middlemen to do the sales work.
To buy from the middleman market is considered to be weak because they usually sell warranties that provide less coverage for a lower price so that their sale becomes easier. They just want to make their sale fast so that their profits are increased. Consequently, they do not sell the best warranties and buyers are often disappointed to find out that most repairs are not covered under these warranties.
Buying from brokers is considered to be the riskiest place to buy. It is because they only sell warranties. Brokers’ goal is to make the sale or they do not make money. And they do not offer the best extended car warranties because they want to make the biggest profit via offering warranties with less coverage for higher prices.
You must do your homework, read more and learn to find a direct seller as they are professionals who won’t pressure you and you will get an extensive warranty that will pay for your most of your repairs. Focus on the coverage offered and not solely on the price to get the best results.