If you want to save money on your next car purchase, a second-hand car might just be the thing you were looking for. Although buying a pre-owned vehicle certainly has its benefits, can you buy a warranty on a used car?
You can buy a warranty on a used car, with the coverage varying based on several factors like the car model, age, mileage. Different service providers have various offers, so you’ll have to search for a package that best suits you and your vehicle.
Although warranties allow you to repair the vehicle in case it malfunctions, be aware that you will still have to pay for anything that’s not listed in the coverage yourself.
When you buy a second-hand vehicle, you can also purchase a used car warranty. Since it’s basically an insurance policy, a warranty can cover a number of things, such as the cost of repairs and replacements for parts that break or wear out.
It can also cover the cost of towing and when you need to send it to the service shop. However, a warranty can’t do everything, so it’s a good idea to be aware of the limits of your warranty before you buy.
Although a used car warranty can cover many things that break or wear out, it doesn’t always mean that you’ll get them fixed for free. For instance, if there’s an electrical problem with your car that isn’t covered under your warranty, you will have to pay for the service and parts yourself.
The length of a used car warranty can vary depending on the car’s make, age, model, and other factors. It can also vary from one dealership to another, as well as between states. In some states, the minimum allowable warranty is 60 days or 1,000 miles, but it can be as high as 30,000 miles or one year.
However, in most cases, a used car warranty will last for a period of between three and five years. The length of a used car warranty could be reduced if the auto was involved in an accident, has been improperly maintained, or if the car was previously written off.
Cars are expensive investments, which is why it’s crucial to consider all your options when deciding whether or not to purchase an extended warranty for a used car. To make sure that the warranty meets your requirements, do your homework and:
- Check your budget – Before deciding to buy any product or service, it’s important to consider how much it will cost. If you find that the cost of an extended warranty for your used car is too high, consider waiting until you can afford it.
- Check the warranty’s expiration date – Be sure to read all of the fine print before signing up for a plan, as all extended warranty contracts have an expiry date.
- Learn about covers and exclusions – Before signing any extended warranty contract, read through the contract thoroughly to know exactly what circumstances are covered by the plan and which aren’t included in the coverage.
- Look out for hidden costs – Don’t forget to look out for any hidden costs you may incur before you sign on the dotted line. Some extended warranty contracts include a lot of fine print, and some conditions may not be included in your warranty plan. It’s also important to know exactly what charges apply if you need repairs after the warranty expires.
The price for an auto warranty will vary depending on the age, make, and model of the car, as well as the terms and conditions of the warranty. Generally speaking, though, an auto warranty will cost around $500-$1,000 for a used car.
It’s typically less expensive to buy an extended warranty for older cars with over 100,000 miles than it is for new ones. Warranties are available for purchase from various sources, including dealers, manufacturers, insurance agencies, and third-party providers.
Considering that each of these might offer different terms and coverages, read the fine print and ensure that the warranty includes everything you want and need. With that out of the way, let’s look at how warranty prices vary between different providers.
Is Buying Standard and Extended Warranties on Used Cars Worth It?
When deciding whether or not to purchase a warranty for your used car, you need to weigh the costs against the risk of the car breaking down. These risks are based on the reliability score, which shows how likely it is that the vehicle will break down.
For example, if your car only has a 50% chance of breaking down within the first 60 months, you are better off saving the money for now and putting it towards the cost of engine/transmission repairs or even higher replacement costs. On the other hand, if there’s a much higher chance of it breaking down, then a warranty may be a good idea.
A used car warranty is typically only worth buying if your car is in poor condition or has high mileage (e.g., over 100,000 miles). If the auto is in great shape, has low mileage, and is less than five years old, you are better off saving the money for now.
If something goes wrong, remember that the extended warranty will only pay you out for things covered in the terms. If you don’t need to spend thousands of dollars on engine or transmission repairs, you probably won’t require an extended warranty.
On the other hand, If your car is in poor condition, purchasing a used car warranty might just save you hundreds of dollars, if not more.
Warranties can be a valuable investment for car buyers, whether purchasing a new or used vehicle. When shopping for a warranty, it is important to compare prices and coverage levels between different providers. By doing so, car buyers can rest assured knowing that they are getting the best possible protection for their vehicle.