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Auto Warranty in Iowa

Car buyers in Iowa may feel pressured by the dealer from whom the car is being purchased to include an auto warranty into the principal of the loan. While this is sometimes a wise plan, more often the buyer ends up paying interest on the auto warranty and putting more money into the lender's pocket. It is usually better to purchase the auto warranty separate from the purchase of the vehicle.

While dealers may offer the best warranties, it pays to shop around before signing on the dotted line for an auto warranty. In general, dealers use high-pressure techniques to convince a buyer to add the cost of a warranty onto the price of the vehicle. If the vehicle is brand new, it is already covered with a factory warranty so the purchase of additional coverage is unnecessary. If the vehicle is used, it may or may not have an existing warranty in place. A buyer needs to be aware of whether there are already coverage provisions on the vehicle.

If a buyer is considering an auto warranty through the dealer, the buyer should ask if the auto warranty is through the maker of the vehicle or through a separate company. Many car manufacturers do offer warranty plans, and there are also many reputable online auto warranty companies. Before agreeing to any specific company, the buyer should research the reputation of the business with the BBB. All auto warranty companies considered should have an A rating with the BBB. Any businesses that are not BBB accredited should not be considered.

In addition to researching the reputation, the individual needs to understand the requirements of the policy in the event of repairs. Will the vehicle need to return to the dealership where it was purchased, or can the driver choose where the vehicle is serviced? This alone could be crucial if the driver is from out of town or plans to move to another state.

Iowa residents can make the car buying process a little less stressful if armed with auto warranty information before the deal is made.

 

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Auto Warranty In The News

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Maryland Used Car Dealer Investigated After Car Broke Down on Drive Home From the Lot

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