Tips on Buying Cars: Extended Warranty Programs, hyundai santa fe, hyundai warranty

Question
QUESTION: I am purchasing a 2004 Hyundai Santa Fe LX 6 cyl, that has 71713 miles, on it and it looks good in and out.  I'm paying cash to avoid the finance charges.  Now I want to find a good, reputable company to provide an extended warranty.  I had the vehicle checked out by two mechanics, I did a carfax report, I checked Consumer Reports, I researched it on Edmunds.com, ran a price value through KBB and Consumer Reports and I looked at the dealer's record on the BBB.  Everything checks out, now I just want to get the warranty - any thoughts on thoughts on a specific company or at least where to look?

Thanks in advance,
Landon

ANSWER: Landon,

Thanks for your question.  I am glad that you are planning on purchasing an extended warranty for your Hyundai.  That is a very smart deal that most consumers don't see.  

As far as what extended warranty company you should go thru you have several different options.  If I were you I would go to a Hyundai store and see if you can purchase an extended warranty thru the manufacture.  Those are always the best extended warranties to get.  A lot of dealerships don't sell the manufacture's extended warranties, because they sell third party warranties, so save yourself some time and call ahead to see.  I am very leery of third party warranties especially the ones that mail you stuff in the mail.  They usually are cheaper, which isn't always better.  
They very rarely pay any claim, or pay only a certain amount per claim leaving you responsible for the rest.  I would call Hyundai or a Hyundai dealership to get a Hyundai warranty.  If you can't find that, then go with the dealership's warranty where you are purchasing the vehicle.  They will honor the warranty that they sell and will strive to make sure you are happy.  Do your research though, and read the fine print.

I hope this has helped.

Thanks -

Jeremy Beck

---------- FOLLOW-UP ----------

QUESTION: Jeremy, I really appreciate the good advice.  I have called several dealerships around town and I'm finding that they are all trying to sell a third-party warranty.  I think I may do what you said and go for the next best option by purchasing it from the dealer I bought the vehicle from.  
They're offering me one for 4yrs/48K at 2350 (-10%) if I do it by today 2/29/08...you know the old sales tactic to "close it out by the end of the month" routine.
Thanks again,
Landon

Answer
Landon,

That sounds very expensive for the extended warranty.  I would be interested to know who the warranty company is that they use.  A normal 4 year/48,000 mile warranty should cost you somewhere in the neighborhood of around $1700 to $1800.  I would try to get it for that price. Now, with that being said some dealerships have extra costs added onto their warranties, so they may be selling it to you at a good price, but as with everything else in the auto industry, that is negotiable as well, and I would explore that option with them.  I am sure they do want you to do it by the end of the month, but most warranty companies also have limits on them for how long you have to purchase the warranty after you purchase the vehicle as well.  Try to get that price lower and then go for it.

Thanks for the follow up.

Jeremy