If you're looking for an extended car warranty deal then you may think that visiting your local car dealership is the way to find one. The internet may actually be the key to identifying cheaper alternatives.
Car retailers, including dealerships, garages and car supermarkets have been a popular way of purchasing warranties for many years. They've been easy to locate, giving them a big advantage.
They've also often seemed to be the only place from which such warranties have been available. While some of us may have been unhappy with the prices that we were paying, it often seemed as though there was no real alternative.
This appeared to be one set of products where we had a limited choice. That choice often seemed to be to purchase from a car retailer, or not have a warranty policy associated with our vehicle at all.
In reality, there were always other options available, but they were often poorly advertised. Independent warranty companies could sell direct to consumers, but they were often happy to sell their products to vehicle retailers.
Those retailers then sold the policies on to consumers, usually at a profit. This situation was good for retailers and suited the independent specialists, ensuring that their costs were low.
Some analysts are quick to point out that the situation was far less good news for UK car owners. Consumers were paying over the odds, with the middlemen adding to the costs.
Wouldn't it be better for consumers if we could buy direct from warranty companies. We could cut out the middlemen and reduce the costs. It seemed like common sense.
This common sense has now become a reality, with a number of independent car warranty companies looking to use the internet as a means of selling direct to consumers.
Costs are falling - it's simply a matter of seeking out the best possible deals.
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