Is a Used Car Extended Warranty Worth the Money?

If you are thinking of buying a used car, you might be wondering if an extended warranty is worth the extra money. In general, extended warranties can be worth the money, but it is necessary to do plenty of research first and weigh the pros and cons before committing yourself. See which company we recommend.

There are many considerations when weighing whether an extended warranty will make sense for your used car purchase. In this article we will go over the basics.

Before even considering an extended warranty on a used car, it is important to first understand what the warranty actually covers. Failure to read the fine print could cost you thousands of dollars needlessly. For example, does the warranty cover electrical problems, or only mechanical problems? How about rental car expenses while your car is being serviced?

Asking questions and getting all the facts is vital to make a good decision. Ask questions like, does the warranty cover seals, gaskets, belts and fans? Also, make sure to check if it covers alternators (many extended warranties do not, and this is one of the most common problems with used cars).

Some warranties will not even cover normal wear and tear on your car. This is probably the most important question to ask, because a car dealership will often define "normal wear and tear" in a way that is beneficial to them--but not at all to you!

For example, a transmission problem on a car with 50,000 plus miles can be considered normal wear and tear under the terms of certain extended warranty contracts. Be sure to read the fine print and ask loads of questions until you are satisfied with the answers.

On common sales ploy is the so-called "bumper to bumper" warranty. If you are like most people, you would assume this means every single part of the vehicle is covered. However, that's usually not the case. Even "bumper to bumper" warranties can fail to include interior problems, or what they deem to be "normal" wear and tear. It also pays to research the company offering the extended warranty on the used vehicle, and check for complaints filed with the Better Business Bureau.

If you do purchase an extended warranty on a used car, sometimes the contract stipulates that you are entitled to be reimbursed a portion of your money if you cancel the warranty and have not had any repairs done. But you will have to ask to know for sure, because most companies won't inform you of this clause unless specifically asked about it.

Before deciding to purchase the warranty, be sure to ask the dealer what other warranty options are available. In some states, all used cars are sold with an "implied" warranty, even if none is mentioned. Again, this is the kind of thing you will need to ask about specifically, as most salespeople will never mention it otherwise (why would they? It's not in their best interest to do so). Dealers normally also include a sizable markup in the amount of extended warranty payments, so don't be afraid to haggle for a better deal.

Following these common sense rules and asking lots of questions will ensure you don't get stuck with a used car extended warranty that doesn't suit your needs or budget.

Get a FREE, No Obligation, Extended Auto Warranty Quote in Less than a Minute!