Should I Buy Extended Warranty On Used Car
In this article, we discuss common situational and lifestyle factors that play a role in deciding if an extended warranty is right for your used car. You can start researching costs right away by reaching out for free, personalized quotes from some of our top recommended providers, listed above.
should i buy extended warranty on used car
As vehicles age, the chances that particular parts will wear down and stop working increases. An extended warranty, also called a vehicle service contract, is one way to protect your used vehicle from potentially costly repairs once your factory warranty ends.
Some dealers provide short 30-day warranties, but these usually only cover basic components and require you to visit the selling dealer for repairs. In some states, 30-day warranties are required by law. In states with no warranty requirement, including a warranty with used vehicle sales are up to the dealer.
There are several types of used car warranties. Some used cars come with a factory warranty, and some dealerships and manufacturers offer extended warranties. There are also extended warranty companies that offer aftermarket warranties.
You have many options to choose from when getting a used car warranty. Each provider offers different types of services, Used car warranty coverage can be grouped into a few major categories known as coverage levels. The different coverage levels offered by warranty providers are sold as specific used car warranty plans. We go into more detail about the most common used car warranty plans below:
Getting free quotes from reputable providers to compare pricing and coverage is the best way to know how much one will pay for a used car warranty. While the price list above can help give us a better idea of used car warranty costs, the actual prices a specific person will pay varies based on a multitude of factors related to his or her unique situation. Factors that affect the cost of a used car warranty include:
Reputable extended car warranty company that offers six levels of coverage and has excellent customer reviews. It is our choice for Best Coverage and our top overall pick for extended warranty providers.
If you have determined that a used car warranty is likely worth it for you, the sections below serve as a guide to aid you throughout the purchasing process in determining the best warranty for your needs.
Many auto manufacturers sell their own extended factory warranty plans. These plans compare well with third-party warranty providers in terms of price and coverage. However, they come with severe limitations. While an aftermarket service plan can be used at any ASE-certified repair facility, most manufacturer warranties will only cover repairs done at brand dealerships.
While the warranties offered by dealerships are usually manufacturer-extended or CPO, some even provide aftermarket extended warranties for used cars. If a dealer is offering to finance a warranty package with a used car they are selling you, and this extended warranty will likely cost much more because the loan accrues interest, just like your car loan. In addition to paying additional interest, a car warranty purchased from a dealer is likely to cost more because dealerships usually earn extra commissions for warranties they sell.
Last but not least, drivers interested in coverage for their used vehicles can purchase an extended warranty from an aftermarket provider. Getting a used car warranty from a third-party provider gives you more freedom than shopping at a dealer.
The only way to find the best extended warranty for your own used car is to shop around and compare costs. There is no single best extended warranty for everyone. Different drivers have different coverage needs and may receive different quotes based on where they live, the car they drive, and a number of other factors. Below are a few things to look for in used car warranty companies.
In this article, we provided a complete overview of used car warranties. In addition to touching on the basic rules and regulations surrounding used car warranties, we explained the basics of used car warranty coverage and cost. Finally, we discussed when it may be a good idea to consider a used car warranty, used car warranty options, and highlighted some of the top providers of extended warranties for used vehicles.
Endurance offers direct-to-consumer extended warranties, which means that warranty services and claims are all handled by Endurance. There is no middleman or underwriting provider. Here are a few things our review team likes about Endurance:
CARCHEX offers a total of five extended warranty plans, each of which can be customized. All plans include 24/7 emergency roadside assistance, gas delivery, trip interruption services, and lockout services.
A used car dealership warranty typically requires you to visit the selling dealership for repairs, which limits your repair options. It may also only cover a few systems. Large companies like Carvana may work with a wider network of repair shops, which can make a used car dealership warranty more worth it.
While some dealerships may try to sell you extended coverage when you buy a new car, you can usually purchase coverage from the manufacturer until the factory warranty expires. Independent warranty companies allow you to purchase vehicle service contracts for cars at any mileage. That said, older vehicles may not qualify for all service plans.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of extended auto warranty companies to formulate rankings of the best providers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
Deductibles are an issue. If you buy an extended factory warranty from the automaker, typically it does not have a deductible. But third-party warranties usually do include them, and they can be as much as a few hundred dollars.
An extended warranty for a used car is technically called a MBI or VSC, as previously mentioned. An extended warranty may be sold at the dealership when buying a car or post purchase as an aftermarket offering. Extended warranties will cost additional to the vehicle and when purchased at the dealership, often are asked to be paid up front or financed with your vehicle. The extended warranty is additional to the Original Equipment Manufacturers (OEM) Warranty. Each make and model offer different OEM coverage periods. They are put in place to cover defects in materials and workmanship from the factory. OEM will expire eventually so make sure to understand the parameters of the OEM so to not be without coverage.
Like all warranties, whether you are covered by an OEM or an extended warranty, there are terms and conditions that spell out items covered and those excluded. Most extended warranties are offered for a set amount of years and usually applies to parts and labor. Always review the conditions and claim information so when needed it will be easy to file a claim and get your vehicle back on the road.
Having an extended warranty or MBI means you will not have to unexpectedly shell out hundreds or thousands of dollars for repairs that creep up from time to time. Big repair bills can happen at the worst times, and extended warranties and MBI can protect against those.
No matter how well built your make and model is, unexpected repairs are bound to arise. For many, their vehicle is their lifeline and their only mode of transportation. If you buy a used car, truck, or SUV you might have payments to still pay but when the OEM runs out, no warranty. Extended warranties have become more critical as people decide to keep their vehicles longer. The ideal is to pick up an extended warranty once your OEM expires. This will give you constant coverage in case a repair is needed.
There are many options for buying an extended warranty on a used car. However, most used extended car warranty companies doo not publish their pricing online, making it difficult to know if you are spending too much. At olive.com we publish all of our pricing online. If you have a vehicle 10 years old or newer with under 140,000 miles you can simply go to shop.olive.com and in less than 2 minutes you will get 9 options on an extended car warranty solution for an easy monthly payment you can cancel anytime.
In addition to the dealership where you purchase your used car, there are several companies that offer MBI or extended warranties. Remember, not all warranty companies are the same. Do your research prior to buying. Again, take a look at those terms and conditions so you know the ins and outs of each plan.
These plans only pay out when needed. If you have enough money to pay for unexpected repairs to your vehicle on your own, then you can self-insure by not purchasing an extended warranty or mechanical breakdown insurance coverage. However, although you may service your vehicle on the regular and keep it clean and neat, you cannot predict what is going to happen under the hood of the car.
Most used vehicles when purchased from a car dealership come with a Certified Pre-Owned warranty. This usually means the vehicle has passed a rigorous set of inspections that the dealership conducts. Warranty coverage varies per car make and model. Just like any warranty, you should pay attention to the restrictions. Usually repairs need to be conducted at the dealership where you purchased the vehicle. These warranties are peace of mind when buying a used vehicle from a dealership. 041b061a72