Should I Buy an Extended Warranty On A Used Car?
New cars come with an original equipment manufacturer warranty for a set number of miles or years. This is one of the measures dealerships and manufacturers have to give their customers the best experience after owning one of their cars.
While choosing a preowned vehicle over a brand-new one will often have a huge price difference, the money you save can go to more expensive repair and maintenance costs. What can you do to avoid these unexpected expenses?
What you can do is get an extended warranty for your used car. But what is it exactly and should you buy one? This blog discusses everything you need to know about extended warranties and which ones are worth considering for your vehicle.
What is an Extended Warranty?
An extended warranty can cover the partial or total cost of repairs when your standard factory warranty expires. This type of warranty covers your usual repairs, replacement parts acquisition, and the like. You can get these packages directly from the manufacturer or dealership or from third-party providers.
Extended warranties are often included along with Original Equipment Manufacturer warranties that come with new car purchases. They often include parts and labor for a set duration and mileage valid for a fixed amount of years.
Should I Buy an Extended Warranty on a Used Car?
There are many reasons why you should consider buying an extended warranty for a used car.
Cost savings
Many car owners question if an extended warranty is worth it as they are purchased separately, and it is an additional expense. However, it can save you more money in the long run. While the original factory warranty safeguards you for about two to three years, an extended warranty lets you have more coverage even after your OEM warranty expires. This is especially important if you’re looking to keep your vehicle long-term.
Getting a luxury or high-end vehicle means needing expensive parts during a repair. The amount spent on buying a single component is more than the price of an extended warranty. Moreover, while more affordable brands are available, maintenance costs can quickly build up as the car becomes less reliable after numerous repairs and issues.
Peace of mind
Getting an extended warranty for your car lets you have enough buffer to cover major repairs, part replacements, and labor costs without having to worry about getting a loan or breaking the bank. While you have to pay a little more upfront to enjoy the benefits of an extended warranty, it will be better for your car in the long run once you need it the most.
Additional benefits
Extended warranties don’t just keep you from shelling out unexpected expenses. They also offer more benefits that many drivers may not know. The added advantages will make the purchase worth it, and they differ depending on the extended warranty you’ll get.
For instance, some extended warranties also offer rental car reimbursement and meals and accommodations during your trips. If you get stranded on the road, you also get 24/7 roadside assistance and towing needs.
Flexibility
Some drivers think you can only get an extended warranty from the preowned car dealership. However, that is not the case. You get various purchase options from other companies where you can maximize their benefits as they offer more competitive terms. It’s best to canvas for these warranties and find the one that best fits your needs.
You also enjoy unparalleled flexibility because you can take your vehicle to any authorized repair shop. Instead of going through the trouble of finding a specific repair shop for your ride, you can have more convenient options once you get an extended warranty package for your car.
Higher resale value
Consumers see vehicles with warranties or were under one to be well-maintained or in good working condition. Similarly, some extended warranties are transferable. You can use these factors to demand a higher trade-in value at a dealership or sell your vehicle and price it higher than its current market value.
What does an extended warranty cover on a used car?
New vehicles often come with different kinds of warranties that can vary according to mileage or years in terms of validity. Some warranties can last for as long as 10 years or 160,000km. If you buy a preowned car less than three years old, some warranties are most likely to still be in effect.
Here are some of what you can expect an extended warranty on a used car will cover:
- Vehicle repairs
- Roadside assistance
- Rental car coverage
- Tire and rim warranty
What is the average cost of an extended warranty on a used car?
Extended warranties are not a one-size-fits-all addition to your vehicle because every car owner and policy differs. These packages can cost around $350 to $700 per year. The prices and coverage vary, depending on where you get them. These costs can also have monthly dues or upfront payments. Other factors that help determine the price of an extended warranty include the following:
- Age/Mileage: High-mileage vehicles and older cars are more susceptible to repairs and will come with more expensive extended warranties. Some may not even be given one if they are over a certain mileage or age.
- Type of vehicle: If you’re getting a preowned luxury vehicle, you can expect to spend more on an extended warranty as they are not as reliable as other vehicles on the road. They also require specialized parts and pieces for restoration and maintenance, which will cost more than other brands.
- Deductible amount: Some warranties have a deductible that must first be met before you can use them. The price of an extended warranty depends on how much your deductible is. Lower values require a higher cost to cover your vehicle, while a higher amount will give you a lower overall price.
Get Your Vehicle Covered with an Extended Warranty
Choosing preowned vehicles is an excellent choice for many drivers looking to save more money when purchasing a car. With the right extended warranty or vehicle protection plan, you get peace of mind knowing you are protected from any unforeseen expenses due to repair and maintenance.
Make the most of your used vehicle purchase by visiting the VIP Automotive Group blog.