Extended Warranty on Used Cars: Is It Worth It?
When you purchase a used vehicle, you may be concerned about the potential for problems due to previous wear and tear. That’s why many people also purchase a warranty from an extended vehicle protection provider. This warranty will typically cover major repairs like engine, transmission, drive axle, engine cooling, and other basic systems. If you’re wondering if purchasing an extended warranty is a smart idea, here are some things you need to know.
Warranty Cost vs. Savings
An important thing to consider is whether or not you’ll be able to pay for any major repairs that are no longer covered under the factory warranty. If you spent most of your savings on the car and won’t be able to build it back up quickly, it’s a good idea to have some kind of warranty to cover major repairs that you’ll be unable to afford otherwise. This is especially true if the money you’re spending on the warranty won’t substantially change the amount you can save towards repairs.
You also need to think about how reliable your vehicle is likely to be. You can look up reliability ratings and dependability studies on your specific make and model to help gauge this. If your vehicle has a lower reliability rating, you may want to consider an extended vehicle protection service. An independent mechanic can also find indications about the car’s dependability, so if that’s an option before purchasing a used vehicle, be sure to take advantage of that.
If you hope to keep your car for a few years and the one you’ve recently purchased is at least ten years old, it’s a good idea to at least purchase a basic warranty. There are warranties specifically designed for cars between ten and twenty years old, with mileage in between 80,000 to 200,000 miles. These warranties will cover the major systems in your car so that you’ll only need to worry about typical maintenance due to wear and tear like brake pads, transmission flushes, and oil changes.
Additional Coverage Options
There are numerous options when purchasing an extended warranty, but one of the biggest benefits is the additional coverage options you can choose to add. You can determine what coverage is most valuable to you by taking into account your previous history with car repairs as well as the hazards you typically face in your area. These factors can help you decide if towing, road-hazard tire, rental car, manufacturer extension, and other coverage options are important to you.
Choosing a Warranty
If you’ve determined you need an extended warranty, there are a few tips to help you get the best one. Research who stands behind the warranty. It may be a car manufacturer, individual dealers, or the warranty company itself. In addition, these contracts are complex, so make sure you know exactly what is and isn’t covered, and that expensive parts like the engine, transmission, transfer case, cooling system, and drive axle are covered. Make sure you know where you can get repairs, if repairs are paid directly to the shop or by reimbursing you, and if there are waiting periods or pre-approvals required. In addition, if you think you may sell your vehicle in the near future, ask about additional coverage that allows you to transfer the contract with the sale. This is important information to know because it can increase the value of your car. Contact Freedom Warranty LLC today to learn more about used car extended warranties.