As the government-sponsored “Cash for Clunkers” trade-in program winds to a close, the mainstream news media would lead the general public to believe that the program was a rousing success.   After all, tens of thousands of people took the opportunity to bring their inefficient, gas-guzzling cars into dealerships around the country to receive a credit towards the purchase of a new vehicle.  Certainly this would spur the economy and help the failing U.S. auto industry at a time when it needed it the most, right?

Well, not exactly.  When it comes to Cash for Clunkers, looks can be deceiving.   Auto industry experts are in almost unanimous agreement that the program sponsored by the Obama administration will be remembered more as a sort of Potemkin Village – all show, but with very little positive of substance about it.

So what was it about the Cash for Clunkers program that doomed it before the first cars were even sold?  Consider the three primary reasons why it is being called a failure by those who know within the automotive industry.

Reason #1:  The types of cars people were purchasing.

An overwhelming number of the cars purchased through the Cash for Clunkers program were Toyotas and domestic vehicles.   While this may seem patriotic (in terms of the American cars), the cold hard fact is these are the very cars that dealers and manufacturers tend to lose the most money on.

Reason #2:  Lots and lots of red tape.

Like almost anything that entails receiving a check from the U.S. Government, there is going to be a significant delay in the payouts to dealers who took part in the program.   With the current, precarious state most of these businesses are currently in (some are only months away from going out of business), a number of the dealers will go bankrupt before they ever get paid by the government.

Reason #3:  Poor Logistics.

Simply put, our government didn’t know how to logistically pull off a program so complex and unprecedented.   In many ways, they tried to predict the actions of the auto market without any expert insight into the sector.    This problem could have been avoided had high-ranking government officials met with auto industry leaders (or even local dealers) and asked their opinions of how it should be run.   But instead of meeting with the dealers, they legislated “at” them – and the result is a program that did not help those who needed it most.

The idea behind the Cash for Clunkers program was a good one- with the best interest of the U.S. economy at heart.  Here’s hoping that the next iteration of the program – or similar plans – are outlined more clearly, and that the industry experts who can make it run more smoothly are consulted from the outset.

What is an extended warranty? And how do you know if you need an extended warranty? If you’re buying a car, and not totally sure about the answers to these questions, then read these helpful facts below – they’ll help you make a more informed decision about purchasing an extended warranty and potentially saving big money on expensive repairs.

What is an extended warranty?

An extended warranty is a “prolonged” warranty for car owners that goes beyond the initial warranty plan offered by the dealer.

What is covered under an extended warranty plan?

Generally, a warranty plan covers repair costs associated with electrical and mechanical breakdown. The most common areas covered by an extended warranty include: the engine, transmission, rear wheel and front wheel drive, brakes, steering, electrical systems, suspension and air conditioning.

What is NOT covered under an extended warranty?

The majority of extended warranty plans will not cover non-electric or non-mechanical issues such as general wear and tear of the automobile, normal maintenance issues or theft.

Other significant expenses covered by extended warranties

One of the many positive things about extended warranties is the fact that they often cover expenses associated with repair that you might not have considered, including the cost of having your car towed and even rental car expenses during the time in which your car is being repaired.

Do I need to purchase an extended warranty at the time of purchase?

Most extended warranties do not need to be purchased before you drive off the lot with your new car. However, to get the best price on an extended warranty plan, it is a good idea to buy in as soon as possible. The price of many plans goes up after a certain number of miles have been logged on the car.

What happens to the extended warranty if I decide to resell my car?

Another great thing about major extended warranty programs is that they are transferable. Therefore you can increase the value of your car when selling it to a private party.

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Warranty Consultants Online is an independent consulting group dedicated to helping consumers make better decisions about Extended Warranty programs for their home, car and electronic products.
Using research, articles and product reviews, Warranty Consultants Online provides an objective, one-stop source for individuals who are considering an extended warranty for almost any major purchase.
Warranty Consultants Online stays current with the industry so you have everything you need to make the “right call” about topics most important to you, including:

• Whether or not you need an extended warranty.
• Which extended warranty is right for you.
• How to choose the proper deductible.
• How to better understand what’s covered under the terms of your extended warranty.
• The differences between warranties for your home, car and consumer electronic products.
• And much more!

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First Extended Service Corporation, the company that honors extended service agreements for auto dealers and car owners around the country, now has even greater standing in the marketplace as it has become part of respected industry leader The Warranty Group.

The Warranty Group, the largest extended service agreement company in the world, literally invented the sector over 25 years ago. The Warranty Group acquired First Extended Service Corporation because it recognized the value of a company that has provided over one million automobile owners with service since 1974.

First Extended Service Corporation works with over 1,700 automobile dealers of new and pre-owned cars and trucks throughout the U.S. The well-known, well-regarded company’s extended service contracts are approved for financing with the cost of the vehicle by General Motors Acceptance Corporation, Ford Motor Credit Corporation, Chrysler Credit Corporation, and major banks across the country.

Performance of the company’s service contracts is underwritten by a national insurance company rated “A” Excellent by A.M. Best. Rare is the refusal of a customer claim, which has led to outstanding customer service satisfaction rating and a heavy volume of repeat business.

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