By Alejandro BustosEven if the warranty sounds excellent for the used car, make sure you read it before signing off on it. There are a lot of times when consumers buy used cars and think that the warranty company will cover them for something that they actually don't. Unfortunately, they will then file a claim and be rejected. Don't let this happen to you.
Second, do not believe everything that the auto warranty companies will tell you. A lot of auto warranty companies will say their warranty cannot be refunded. This is a lie. Every single extended car warranty has a refundable period of 30 days after it is purchased, as long as there's no claims that have been made against it.
This is to protect you because if you discover something about the warranty in the first month the you're not aware of, and that you don't like, then you are able to cancel that warranty.
Also, you want to deal with somebody who will give you straight information on different warranties. Avoid dealing with people who will badmouth their competitors are other companies that offer warranty contracts. Often these people exaggerate their own warranties, and downplay others. This will not help you make the most informed decision.
It's always better to deal with ethical and reputable people anyway.
Finally, you should avoid buying your auto warranty from your dealer. It is convenient, but it is not the best course of action in terms of value. Sometimes they will charge two or three times the normal rate that you can get from going to a warranty company.
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