When buying a used car from a dealership, you’re often offered an extended warranty. Being an additional expense, you might wonder if it’s really worth it.
Understanding used car warranties
As the name suggests, a used car warranty provides coverage for future repairs and replacement of certain parts of the used car. This can be offered directly by the dealership itself or by one of its partners.
Basis for deciding on a warranty
According to us, two elements are essential. Firstly, familiarize yourself with the information regarding the warranty offered. Secondly, check if the factory warranty is still valid and transferable. If the factory warranty is not valid, carefully review the elements included and excluded from the warranty offered at the time of purchase. If none of the above options suit you, set aside money to be able to carry out any future repairs yourself.
Included elements in a used car warranty
The elements covered in warranties for used cars vary in terms of coverage. There are comprehensive offers as well as basic ones. Therefore, it’s essential to check the elements included before subscribing. Note that generally excluded are regular maintenance repairs and damages caused by accidents.
Excluded elements
Below are a few exclusions:
- Damage due to neglected maintenance: When the vehicle incurs damage due to neglected maintenance.
- Damage caused by an accident: Any damage caused by an accident is not covered. The same goes for damages related to environmental factors like floods, etc.
- General wear and tear: Wear and tear issues that do not affect the vehicle’s operation are generally not covered.
- Routine maintenance: Regular maintenance tasks such as oil changes, tire rotations, etc.
- Unauthorized repairs: Any repairs made without prior authorization from the warranty provider may not be reimbursed.
Cost of a used car warranty
The cost of a warranty for a used car varies depending on various factors. Therefore, it’s important to understand these factors and research the best options available in the market. These factors include, but are not limited to, the brand, model, model year, mileage, deductible, and coverage level (basic or comprehensive).
Importance of investing in a used car warranty
Used cars, being second-hand, are more prone to breakdowns compared to new cars. In many cases, an extended warranty is a wise decision to protect against unexpected and costly repair expenses.
Warranties for used cars provide protection against unexpected expenses related to mechanical repairs. It’s essential to understand the costs associated with these warranties and carefully assess their value relative to your situation to make an informed decision.
