If you’ll forgive the pun, when you’re buying a car, you’re in the driver’s seat. It’s your money the seller wants and to get it, they have to offer a car package that you’re willing to give up your hard earned cash for. One component of that car package is the warranty. If you’re purchasing a used car – especially a lower mileage car – you may be able to negotiate for a dealer warranty on that purchase.
In fact, if you’re buying a low mileage car, like a fleet car or tester, then the car is probably still under the manufacturer’s warranty. Before you begin negotiating for a dealer warranty on that car, ask for a copy of the manufacturer’s warranty. You may be able to use that warranty as your basis and have the dealer build on that. You might ask, for example, to have coverage extended an additional number of miles. Even if you aren’t able to get a warranty extension on all of your car’s systems, you may be able to significantly improve the remaining manufacturer’s warranty.
Next, find out if your dealer participates in a larger warranty protection group. If a larger group is underwriting the warranty, find out who is doing the underwriting and check out their reputation. The Better Business Bureau is a good place to start to find out if any complaints have been filed against the company. Call up the company as well and ask for more information about the policy. Any reputable company will have no problem giving you information on warranty terms before you buy. Be wary of any company that hesitates when it comes to providing you with details and complete information about the warranty’s terms.
In addition, it’s important to note that a warranty is only as good as the company standing behind it. These days, with dealerships going under every day, having a warranty with a larger underwriting company – instead of an individual dealer – may be a good bet. If you do have a dealer’s warranty, you can also ask your dealer what provisions have been made to honor warranties if the dealership closes, merges or fails.
Beyond this, begin the warranty negotiations just as you would any negotiations – by knowing what you must have, what you’d like to have and where you’re willing to compromise. Start by asking for more than you have to have so you have some room to compromise. If the dealership provides service, you might ask about throwing in oil changes as part of the warranty. It also helps to know the dollar value of the things you’re asking for. It wouldn’t make sense, for example, for a dealer to agree to a warranty worth $5,000 on a $10,000 car – your lack of knowledge may even weaken your negotiation position, so do your homework ahead of time.
Above all, know that you have an ace in the hole – you can walk away if your needs aren’t met. You have to fall in love with the whole deal – not just the car – and the warranty should certainly be considered to be part of that package.
