Consumers all over Oklahoma purchase extended warranties (alternatively called “vehicle service contracts”) when purchasing a new or used vehicle. Many times the cost of the extended warranty is buried in complex financing documents so that the cost of the vehicle service contract is hard to determine. As a practical matter, these extended warranties often vary widely in price. Anyone considering such a protection plan when negotiating their vehicle purchase at the dealer should be aware that the price of extended warranties is often marked up substantially when purchased from the dealer. The dealer is counting on the fact that because the cost of the extended warranty is buried in the financing structure, you will not haggle over the cost.
However, you can and should negotiate the cost of any extended warranty plan. The finance manager will typically receive a commission for selling an extended warranty. When included as part of your vehicle purchase, the price offered may be the full retail price plus a considerable mark up by the dealer. Generally, an extended warranty will normally be in the vicinity of $900 depending on the policy. If you do not negotiate you may find that you end up paying as much as $2,500 for the same plan because of the significant dealer markup. It is usually a good idea to obtain price estimates online for third-party extended warranty policies so that you have a sense of the market price when it becomes part of the negotiation of your vehicle purchase.
Our Oklahoma insurance bad faith attorneys represent those who have their valid extended warranty claim denied by third-party warranty providers throughout Oklahoma. We have been extensively involved in the development of this evolving area of law including consulting with Oklahoma legislators. If your vehicle needs repair or replacement because of defects or malfunctions covered by your extended warranty, our attorneys will zealously fight for the compensation that you deserve. If your extended warranty provider will not treat you fairly in handling your claim, we may even file a lawsuit for bad faith that may entitle you to punitive damages against your extended warranty provider.
Feel free to schedule a free consultation online or call The Bennett Law Firm at 405.272.0303 to discuss your legal options with an experienced Oklahoma City lawyer today. No Recovery, No Fee! We will meet with you face to face and can handle cases anywhere in Oklahoma. We can even come to you!