When you buy a used car from a dealership, they generally place an extended warranty on your vehicle for 2 years of coverage on a 5 or 6 year loan. The additional cost to add on that warranty is around $2500 - $3000 dollars for 24 months of coverage. Now don't get me wrong, I am all about purchasing an extended warranty on my car, but I will not finance an extra $2895 on my 2009 Jeep Wrangler with 52k miles on it. Do you realize that you just lost $2895 dollars of equity in your vehicle over night. Cars depreciate fast enough. I don't need a warranty to do that for me.
I did some checking around, and found a 4 year extended warranty that I can pay on my own for $1500 dollars that covered the exact same items as the other warranty from the dealership. I called the bank and asked them how much will I save in payments if the $2895 is refunded immediately to the principal of my loan. she said that will take 7 months off of your loan. For the fact that your payment will not change, but the full refund will be applied to the principal.
The two companies that I recommend and they both had excellent customer service are:
AAAuto protection - Highly recommended by CNN and FOX
Direct Buy Auto Warranty-Recommended by Mortor Trend and Cars.com
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