Should you consider getting an extended warranty for used cars that you might purchase? Extended warranties in general have a reputation for being high margin items for the company offering them. In other words, it’s often pure profit for the company you buy such a warranty from.
When it comes to extended warranties for new items – electronics and things of that nature – I’m not sure I’d even think of buying an extended warranty but that’s just me personally. I’ll typically stick with the factory warranty for electronics and thing of that nature and try my luck as it were.
On a new vehicle, I think I’d also stick with the factory warranty that I was offered but I’d make sure in advance that I was buying a vehicle that was well known for its quality and reliablity. You can always purchase a vehicle that in generally known to be very reliable but the particular one you buy happens to be a lemon. Things like that do happen but you can certainly do your best to stick with high quality vehicles that have a good track record.
Having said that, when it comes to the option of buying an extended warranty for used cars, it’s something that I’d certainly consider. When you buy a used car whether from a dealer or privately, you’re potentially buying someone else’s lemon. An extended warranty can literally save you from buying a money pit especially if the vehicle you purchase happens to not be as reliable as you may like or otherwise expect.
You can typically get a free quote online for an extended auto warranty for vehicles that are upwards of 20 years old too so you don’t even have to have a relatively new car to qualify.
Extended Warranty For Used Cars Benefits
An extended warranty for used cars offers a number of potential benefits to the policy owner:
1. You get extended coverage over any existing factory warranty the vehicle comes with: Should you have an existing factory warranty in place, the extended warranty helps to cover repair costs and to extend the time at which you are covered. Many vehicle parts need to be replaced at certain periods of time so it’s likely that once your factory warranty runs out, Murphy’s Law kicks in and things start to deteriorate and need to be replaced and if so, an extended warranty will help to defray costs.
2. Help to extend the life of your vehicle: Many people (correctly) keep an eye on repair costs and decide at a certain point that their vehicle will need to be replaced once repair costs become cost prohibitive. An extended warranty can help to repair parts that might otherwise cause you to replace the car at great expense to yourself therefore alllowing you to keep your vehicle longer.
3. Policies are often transferable: Check with the extended auto warranty policy that you’re considering but if the policy is transferable when you sell your vehicle, it can help to maintain and possibly increase the value of your vehicle.
4. Manage ongoing expenses associated with your vehicle: An extended warranty helps you budget in the future for your vehicle’s repair costs, knowing that certain repairs that might be required are paid for with your policy. In that regard, you won’t be facing repairs that might otherwise cost you hundreds or thousands of dollars.
If you consider buying an extended warranty for used cars that you own, do you research and start by getting a free quote to compare costs to benefits.