You see, the less you know about car warranties the more a car warranty company can take advantage of you. However, there are a few questions you can ask to throw them off their game and make them stumble over their own words, and here’s one of them:.
“Would you pay my claim in full even though I am financing the contract for a year and a half?”
And I’ll bet that 99% of the time the answer is: No, they won’t. You will have to pay the mechanic in full for the claim, and then they will take the cost of that repair off of your finance option. Let me explain:
Picture this…its Labor Day weekend and you’re making the trek across state lines to visit your family. Along the way your car breaks down and you end up stranded in the middle of nowhere. You call your car warranty company who helps you get the engine repaired, but to your surprise, because you financed your contract 60 days earlier, the warranty company said you have a payment plan with an outstanding balance of $2500 and the repair bill is $4000.
Your car warranty company says you have to payoff your balance first before they will pay the mechanic. So your choice is to either come up with $2500 to payoff your balance or $4000 on the spot to give the mechanic…or he keeps your car (legally) until he gets his money. But you’re confused because you thought you were financing the car warranty.
Therefore, you are going to remain stranded in the middle of nowhere owing $2500 to get your car back, which you just don’t have at that moment.
I know…I’m confused too! When you finance a contract shouldn’t the car warranty company pay the claim even if you have an outstanding balance? Isn’t that the point to financing???
Sadly, you’ll find it not to be true with most so-called “financing” plans. Car warranty companies don’t care that you’re stranded in the middle of a holiday weekend; they only care about getting their money.
BUT if you are like me and you want your car warranty to actually act as a warranty, then you’ll understand the way we finance at DCI Warranty Services is the right way. So again, using the same example…
Its Labor Day weekend and you’re cruising to see your family when you car suddenly breaks down. You call us first, we arrange the tow truck and your car is taken to a repair shop. We’ll pay the mechanic directly for your car warranty repair and you’ll be on your merry way without any extra payments….the way financing should work, right? All you do is keep making your monthly payments…that’s it….it’s that simple.




