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The sluggish economy is forcing consumers to try to better control their budgets, to minimize large expenses, and to reduce financial risks. Many Americans are only one paycheck, one rent payment, or one car payment, away from financial ruin.
The luxury of the choice to buy a new car has disappeared for many, as the record losses of the auto manufacturers indicate. But that doesn't mean that people are no longer driving. It means that people are keeping their current vehicles longer, rather than getting new ones.
AutoWarrantyResearch.com has found that car warranty coverages is more important then ever.
(PRWEB) June 26, 2008 -- The sluggish economy is forcing consumers to try to better control their budgets, to minimize large expenses, and to reduce financial risks. Many Americans are only one paycheck, one rent payment, or one car payment, away from financial ruin.
The luxury of the choice to buy a new car has disappeared for many, as the record losses of the auto manufacturers indicate. But that doesn't mean that people are no longer driving. It means that people are keeping their current vehicles longer, rather than getting new ones.
AutoWarrantyResearch.com has found that car warranty coverages is more important then ever.
However, there is a silent risk for people who will keep their current car: That of a major, unexpected failure, requiring an expensive repair. Some vulnerable people are only one major repair away from financial collapse, and don't even recognize the danger. A $600 repair for a broken power window may be safely postponed. But a $2500 transmission repair cannot be ignored, because the vehicle may not be drivable. The problem is compounded in that, without a vehicle to drive to work, there is no income to pay to repair the car. Having a functioning vehicle is not just a convenience in modern life, it's a necessity.
For such people, there is a way to eliminate that risk, and to truly control their budget: Obtaining an extended vehicle service contract, popularly known as an extended warranty. By getting an extended warranty, consumers can proactively control their expenses for a major tool they use every day, their car.
With a quality extended warranty, consumers are protected against unexpected vehicle repairs, even the smallest of which can cost upwards of $500. Extended warranties are available for most vehicle for terms generally ranging from two to seven years, with prices between $1300-2800 for comprehensive coverage. Those prices can almost always be paid monthly. An expected $80-150 per month warranty payment is much easier to budget for than a surprise $3000 engine repair, which takes the vehicle out of commission.
Amber Gizzy of Warminster, PA, had intended to use her tax rebate toward a new vehicle, but decided her financial condition was too unpredictable. She had heard that a popular consumer magazine advised its readers against an extended warranty, which she was considering. "My mind was pretty much made up that I wasn't going to get a warranty, then my sister's car fell apart," said Gizzy. "She ended up paying almost $2000 to fix her transmission, and my husband and I actually had to lend her some of that," she explains. "The worst part was," Gizzy notes, "that she had to miss a few days of work because she had no way of getting there. She almost lost her job. Her car was just out of warranty but not even really old, so that whole experience definitely changed my mind about getting a warranty."
Gizzy's story is not unique. Peter DiPersio, a service advisor in Boulder, Colorado, says that there's an obvious difference between customers with a warranty and those without one. "The average day at my shop sees repair costs anywhere from $400 to $3000 in some cases," said DiPersio. DiPersio adds that "Right now because the economy's so bad people are putting off expensive repairs because they have to, if they can, even though I tell them that their just going to be back here with even bigger problems. The people with warranties just tell me to fix whatever the problem is, whatever the price, because they aren't paying for it anyway."
Amber Gizzy said that her extended warranty cost about $1700 for four years, which she is paying for monthly. She explains that "Even I can budget for $110 a month if I know it's going to be coming up every month. But I definitely know I won't have $2000 or whatever to pay for something wrong with my car if it just happens suddenly. And I need my car!"
There are many quality companies offering extended warranties. AutoWarrantyResearch.com, which launched in May, offers a free, complete, user-friendly guide to finding and purchasing an extended warranty. With an extended warranty, consumers can help their lives become a little more predictable, and can help make sure that their vehicle is ready when it is needed.
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