Should I buy the extended warranty for a used car?
An extended auto warranty can be excellent peace of mind when buying a new or used vehicle, but is a used car extended warranty worth it? Where is the best place to buy an extended warranty for a used car? The reality is that vehicle repairs can be hard on your wallet and while maintenance helps, sometimes you just can’t avoid these expensive repairs. A good extended warranty is an excellent option when getting a used vehicle but here are seven important things to consider:
1.Stability: Dealers will likely have the option to sell you a “warranty contract” vs the insurance policies offered by independent providers. Insurance policies have several advantages with financial stability and the ability to pay claims topping the list.
2. Cost: Peace of mind is great but at what cost? Like most products sold in the dealer finance office, you have the option of looking around to avoid the often large commissions. The question ” Should I purchase an extended warranty on a used car? ” often comes down to cost vs benefit. Shop around, it can save you a lot of money.
3. What’s covered (or not): Warranty providers have been famous for lavish brochures listing what is covered, but the real question is: what’s not covered? Considering most of us can’t name the components that make up our vehicle how do you know what isn’t included? Look for warranties based on what isn’t covered much like you would with house insurance.
4. Repair Shop: You deserve the right to choose where your vehicle is repaired. The choice should be yours whether it’s your local dealership or favourite repair shop. Should you choose to get an extended warranty on a used car, make sure you have that option.
5. Transfer and Cancellation: Life changes quickly and an extended auto warranty is a long-term investment. A good product will allow for transfers and cancellations if need be.
6. Eligibility: Extended warranties are often difficult and more expensive to purchase after the manufacturer’s comprehensive warranty has expired so if you are considering a used vehicle find out if it has a 3 year/60,000 km, 4 year/80,000 km, or 5 year/100,000 km comprehensive warranty that is still valid. If it does you can extend it with a product that makes sense.
7. Term: Make sure the length of the extended car warranty gets you maximum value for the price.
Buying an extended warranty on a used car should be a straightforward and easy process that doesn’t come with a lot of confusion, cost, and regret. Should you decide to buy an extended warranty on a used car avoid aggressive sales pitches and do some research before committing.
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