When you buy a new car, typically it comes with a factory warranty lasting around three years or 36,000 miles. But what happens when you buy a used car? If you’re buying a car that is only a few years old, its factory warranty may still be valid.
However, when you buy an older used car -– without a manufacturer’s warranty — you may have the option to purchase a used car extended warranty. Here we will take a look at exactly what an extended used car warranty is, along with the pros and cons of purchasing one.
What Is an Extended Warranty for Used Cars?
The best extended warranties for used cars cover the cost of the parts and labor required to repair your car when a covered component fails. But most don’t tend to cover repairs related to vandalism, theft, dings, dents, or normal maintenance.
It’s also worth noting that every extended warranty or vehicle service contract is slightly different. It’s important to review the coverage options carefully and understand what components you’re paying to cover.
They Provide Different Coverage
They Come with Different Payment Options
Should You Buy an Extended Used Car Warranty?
Purchasing a vehicle service contract is almost always the right decision. Modern vehicles are complicated. Automobile parts are expensive, the labor to install those parts is expensive and both of these costs rise every year without fail.
A used car warranty is a type of auto insurance, and just like other types of insurance, the hope is that you will never need to use it. Nevertheless, having an extended used car warranty in place can offer peace of mind, even if the car had a proper certified inspection.
Pros of a Used Car Extended Warranty
No repair costs out of pocket
- If you’d struggle to pay for a costly auto repair out of pocket, an extended warranty is a good option.
- If you finance the extended warranty and pay for it monthly, and because your warranty provider covers car repair costs, you never have to worry about paying a big bill out of the blue.
- Some extended warranties even cover the cost of towing your car to a repair shop, roadside assistance, and reimbursement for the rental car you use while your car is out of action.
Enjoy peace of mind knowing your car is protected
- As cars get older, they’re more likely to need repairs. With an extended warranty in place, you don’t have to worry about a covered breakdown further down the road.
- Instead, you can simply enjoy your car knowing that your vehicle is protected.
Potential Cons of a Used Car Extended Warranty
Extended warranties may not cover everything
- Always read the small print! Extended warranties don’t always cover every car component or every breakdown. It’s important to choose the coverages that fit your needs best.
- You’ll need approval from a claims administrator before any repairs are made. A professional claims administrator will review the needed repair and compare to the coverages allowed by your contract.
You may not use the coverage
- Extended warranty protection can be expensive. And if you’ve lucked out with a car that runs beautifully year after year, you may not even end up using it. That’s not normal, but it can happen.
- Major repairs on modern vehicles can easily cost $5000 or more. But if your bank balance can take the hit, you could save money upfront by not taking out an extended used car warranty.
You may not keep the car for very long
- Planning to switch cars again soon? Then an extended used car warranty may not be worth the investment.
- A used car that has undergone a thorough inspection may not need major repairs soon. And while most extended warranties are transferable, the next owner may not see much value in the program that you’ve chosen.
Buy a Used Car with Motobyo & Enjoy Complete Peace of Mind
Buying a car through Motobyo? We make it easy for you to find an extended service contract to suit your needs and your budget —- without ever leaving the Motobyo platform.
Select from Good, Better, and Best extended warranties for used cars, choosing to cover the basics or opting for extensive coverage. And remember that the Motobyo service doesn’t end there. We go even further to help Motobyo buyers bid and buy with confidence.