Buying A Used Car: Are Extended Car Warranties Worth It?

extended car warranties

If you’ve just purchased or are thinking of purchasing a used car, you might be wondering, “Is an extended car warranty worth it for a used car?”.

If the vehicle that’s 7-10 years old (or has over 100,000 miles), and the cost of a warranty is less than the resale value of the vehicle, it’s a no-brainer. Extended car warranties are a lifesaver for many people.

Older Cars Aren’t Less Expensive To Fix

When people don’t have extended car warranties when repairs are needed, they end up paying more than you paid for the vehicle itself over the course of one or two major repairs. Most people buy older or high-mileage vehicles because they can get them for a lower price than a newer or low-mileage car. If your vehicle is older than 10 years old, it will be very difficult to get coverage.

Search carefully to be sure that if you do find someone willing to help you, you’re getting quality coverage from a reputable company.

When an extended car warranties are available for an older vehicle, the level of coverage available to you at this point can be limited or costly since they are riskier to cover.  Make sure you are getting the highest level of coverage available to you based on your vehicle’s age and mileage.

If the company selling extended car warranties requires a vehicle inspection or has a lot of questions to ask before they will cover you, consider it a good sign! Your classic wheels are a high risk, and you can be sure that any company that says they will cover your vehicle sight-unseen, cheaply and with no questions asked has no intention of actually paying for your repairs when you need them to.

A Useful Tip For Older Vehicle Coverage On A Budget

First, find out which repairs your vehicle is most likely to need. You can find this information really easily on Yahoo! Autos, where you can get a free reliability report that shows what problems cars just like yours have experienced most in the past. You can also use Auto Beef, which is a site where users individually submit problems they’ve experienced with their vehicles. Once you’ve found out the problems your vehicle is most likely to have, you can save some money by getting a slightly lower level of extended warranty coverage (such as a Powertrain Warranty) that will still take care of the problems your vehicle is most likely to have.

Related posts: