Used Car Warranties

Things to Consider Before Buying a Used Car Warranty

Buying a used car is a good idea if you want to save money and it is possible to get a great deal if you are careful with what you buy, and what you pay. Because the car is used, you have to accept the fact that some parts may not function to full capacity, but most people consider buying used car warranties in order to prevent dealing with costly repairs. You should always proceed with caution before buying a warranty as these deals can be huge money makers for automobile dealers, and other companies who sell them. You do not want to pay for something that costs you more money in the end.

Never let anyone pressure you into buying used car warranties because you must make sure that you truly need one first. These warranties are actually extended service contracts, and cover the cost of certain types of repairs after the manufacturer’s warranty expires. The fine print will tell you if the most expensive repairs are covered such as the engine or transmission, so if enough coverage still remains on the original warranty, you can probably wait before buying another one. Many manufacturers offer warranties that go beyond the standard three year or 36,000 mile protection in order to boost car sales and sometimes these warranties are transferred to used car buyers.

Another consideration for buying a used car warranty is to ask yourself how long you are planning to keep the car? If you purchase a car with one year left on the original warranty, but you plan to sell the car within the next four years, you might want to waive the extended warranty option. Instead, you can put money into your savings account to cover any future repairs when and if they are needed. You might find that you save more money this way, rather than paying for the additional warranty. The two types of used car warranties are manufacturer and aftermarket. The aftermarket warranty is sold by independent companies, and typically cost half as much as one from the manufacturer.

However, what you receive varies widely and most likely will not cover as many repairs and services as one from the manufacturer, also, the higher the mileage on the car, the harder it will be to get the best extended service contract. The best way to get a good deal is to shop around because some may require you to pay for the repair upfront and file a claim for reimbursement so understand the terms before you sign on the dotted line.