Monday, August 13, 2007

No Extended Warranty for Your Car?

People regularly ask me why some extended warranty companies refuse to offer them a contract on their high performance car. For example it's pretty difficult to find any warranty company foolish enough to offer coverage on certain vehicles built by Land Rover (possible quality issues, frequent and expensive repairs), Jaguar (expensive repairs), Mercedes AMG ($20,000 for an engine) and many turbo engine models like Porsche etc.

If a warranty company turns you down they should be honest about why. Be more concerned with the company that is crazy enough to cover these cars. First of all you can bet they won't cover wear and tear failures and the foremost thing on their minds will be trying to somehow get out paying your repairs.

My best advice for you if you have a high end car which no warranty company will touch, is to create your own claims reserve account and don't be stingy. Then you can be your own extended warranty.

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