Extended Warranties For Used Cars

By admin Sep 9, 2023
12824417 - car mechanics smiling at the auto repair shop

Whether an extended warranty for used car makes sense depends on the vehicle’s reliability, your financial situation and how long you anticipate owning it. You’ll also want to consider the cost and coverage tiers.

Compare plans from reputable providers, such as CARCHEX and autopom!, and evaluate their customer reviews.
Cost

No matter how much of a good deal you got on your used car, repairs can add up. If you can afford to cover a costly repair with an extended warranty plan, it can be worth the investment.

Warranty providers set their prices based on the risk of your vehicle needing major repair. That’s why warranties for more complicated, less-reliable vehicles tend to cost more than plans for simpler cars with better reliability records.

Extended warranties, also known as service contracts, cover the costs of repairs after your original manufacturer’s warranty expires. They typically have a deductible like insurance policies.

Some extended warranties are offered directly by carmakers, and others are provided by third parties like Endurance or Carchex. Shop around to find a provider that meets your needs for price, coverage levels and monthly payment options. Requesting free quotes from multiple providers lets you compare prices and terms before committing to one plan. A few reputable providers offer plans that allow you to take your vehicle to any licensed repair shop.
Coverage

Many used car buyers choose to purchase a warranty plan to cover the costs of unexpected repairs. The goal is to prevent these expenses from putting a financial strain on the owner or depleting their savings or credit. It’s important to research the different options available and find one that offers coverage you’re comfortable with.

The plans typically offer various deductible levels and coverage tiers to fit a variety of budgets. You’ll also want to look at the length of time you can expect the plan to last and the yearly mileage restrictions.

The best MBI and VSC companies will treat their customers well and have a good reputation in the industry. They should be responsive to customer complaints and questions. You can find out about this by reading reviews online and checking their BBB rating. You can also ask friends and family about their experiences with the company. A good reputation is important because it can make a difference in how much you pay for the protection offered by an extended warranty.
Exclusions

As with any policy or plan, there are some things that an extended warranty will not cover. These are usually stated in the fine print of the contract. The most common exclusions are:

-Improper maintenance. This can include using the wrong fluids, not replacing filters or skipping regular oil changes. -Modifications. This can include anything from aftermarket parts to performance upgrades. -Pre-existing damage or abuse to the vehicle.

Adding an extended warranty to your used car can be worth it, but you should make sure that the terms and conditions are clearly explained before buying one. The auto warranty industry has been under scrutiny before, and the Office of Fair Trading has recommended that consumers do their homework and shop around before committing to a particular warranty company. The most important thing is to find a warranty that fits your budget and needs. Depending on your situation, an extended warranty could save you thousands of dollars in the long run.
Options

An extended warranty for a used car, also known as an MBI or VSC, may be offered at the dealership and paid upfront or rolled into the vehicle financing. These warranties are sold as aftermarket products and will often cost more than the original manufacturer’s warranty, with different coverage tiers available.

If you have the money and a strong savings habit, it may be worth the peace of mind that comes with an extended warranty, especially on a newer or more expensive car. For mainstream vehicles, however, it might make more sense to simply keep a reserve set aside and save for unexpected repairs instead.

If you decide to purchase an extended warranty, shop around for the best deal. Warranties from the automaker are typically more expensive than aftermarket options, but may offer the convenience of utilizing factory-trained dealership technicians and guaranteed parts. Be sure to understand the terms and conditions of any extended warranty you choose, including the deductibles and mileage restrictions.

By admin

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