Used Car Warranties – Are they worth the money?
A warranty is a documented guarantee issued to a buyer by the seller of a product, that promises or agrees to repair or replace the product if damaged or compromised within a specific period of time.
This typical understanding of a warranty might get you excited to get one on everything you buy. Unfortunately, when it comes to a used car warranty, things are slightly different.
A car warranty agrees to replace or repair your car’s parts in the event of damage or any problems that aren’t caused by you. For new cars, the standard warranty typically runs for at least three years and can be useful to some owners. This is usually not the case for used cars.
If you buy a used car, if its new enough it is possible to ride the manufacturer’s warranty to the end, then, look around for an extended car warranty if you need one.
When purchasing used cars, most buyers would be presented with options to buy an extended car warranty on their new car purchase. While this may seem tempting, the question buyers should consider is: Will I ever use this warranty?
Some car owners say that having a warranty regardless of the cost gives them peace of mind. Others have discovered that they ended up spending more on car warranty than actual repairs that came up with their vehicle.
There are a few benefits of getting a warranty which includes:
- It serves as an advantage if you put the car on sale after some time
- It can also be transferable if you opt for the right kind.
Used car warranties are usually pricey with endless exclusions, premiums, and other details. They also depend on the cost of the car and its parts in the market. Should you choose to pay for a used car warranty, you must know that it comes with several loopholes.
Ensure you make an informed choice between the manufacturer’s extended warranty and that of the dealer or third party.
What happens when you choose to forego the car warranty?
If you are considering leaving out the choice of a car warranty, it remains important to prepare for unexpected events. An effective option may be to save a specific amount monthly for repairs or replacement needs of your car. You can also get a car insurance to cover other expenses, and give you the security you desire.