Should I Buy An Extended Warranty On A Used Car
Should I Buy an Extended Warranty on a Used Car? When buying a used car, one of the most critical decisions you’ll face is whether to purchase an extended warranty. Typical bumper-to-bumper auto warranties on new cars are three years or 36,000 miles, whichever comes first. If you’re lucky, perhaps it’s five years and 60,000 miles, but in many cases when you buy a used car the original warranty will be either expired or in the process of expiring. So, should you sail forth without any protection, or buy at your own expense an extended warranty?
Understanding the Benefits
First, let’s explore the benefits of an extended warranty. One of the most compelling advantages is peace of mind. An extended warranty can shield you from unexpected repair costs, making the ownership experience less stressful. Knowing you have coverage for major repairs, such as engine or transmission issues, can alleviate the anxiety associated with driving an older vehicle.
An extended warranty also helps with budgeting. Without the worry of large, unforeseen repair bills, you can better manage your car-related expenses. This predictability can be particularly beneficial if you are working within a tight budget. Additionally, an extended warranty can enhance the resale value of your car. Potential buyers often find vehicles with transferable warranties more appealing, as they too can enjoy the same protection against repair costs.
Considering the Drawbacks
However, extended warranties are not without their drawbacks. Cost is a significant factor. Extended warranties can be expensive, and it’s essential to weigh this upfront cost against the potential savings on repairs. Additionally, warranties come with limitations and exclusions. Not all repairs are covered, and it’s crucial to thoroughly read the warranty terms to understand what is included.
Another consideration is the potential overlap with existing coverage. If your used car is still under the manufacturer’s warranty, an extended warranty might not offer much additional benefit. Furthermore, some warranties have strict conditions or require the use of specific repair shops, which can be inconvenient and limit your options.
Extended warranties are not strictly regulated and can contain a large number of restrictions and loopholes. If you do decide to buy one, you need to read over the policy carefully, including all the fine print that could result in your paying for the work yourself, despite coverage. For instance, on a specific repair, the provider may put a ceiling on reimbursement. Or they may specify that the work be done at a small group of facilities, none of which are convenient to you.
What Does an Extended Warranty Cover
What an extended warranty or service contract covers depends on the product you buy. Some cover nearly everything a bumper-to-bumper warranty protects, plus periodic maintenance. Others only cover specific vehicle systems and exclude some potentially costly components.
You must do your research before you buy, so you know what’s covered and what isn’t. Be sure to check out owner clubs on the web to learn about what components of your car typically fail, and make sure the extended warranty covers those parts.
You’ll often see the terms “exclusionary” and “inclusionary” on an extended warranty. An inclusionary extended warranty only covers a published list of items. If it’s not on the list, it’s not covered. Exclusionary extended warranties or service contracts cover everything on a vehicle, except those items listed in the contract. In general, but not always, exclusionary extended warranties provide more coverage than inclusionary extended warranties.
Where Can I Buy an Extended Warranty
There are several places to buy extended warranties, including car dealerships, insurance companies, lenders, online retailers and auto manufacturers. Where you buy can be the difference between getting an affordable deal or paying far too much. Contrary to what a car dealership salesperson might tell you, you don’t have to buy an extended warranty at the same time as you buy a new car. In fact, you don’t even have to buy an extended warranty before your car’s original warranty expires.
An extended warranty such as a Mopar Extended Warranty can be purchased anytime as long as you meet the year and mileage requirements. Official Mopar extended factory warranty plans are available for all Chrysler, Dodge, Jeep, Ram, Alfa Romeo and Fiat Brands. The high-level technology used in today’s cars is a leading cause in the rise of repair costs. One major out-of-warranty repair can exceed the price of buying a vehicle extended protection plan. Not only will Mopar Vehicle Protection Plans minimize or even eliminate out-of-pocket expenses for covered repairs, but your dealer will also handle the claim paperwork, letting you relax through the repair process.
How much does an Extended Warranty cost?
The cost depends on the vehicle and the plan selected. Vehicle considerations include: make/model, age, odometer mileage, and if your vehicle is new or used. The plans vary in cost depending on the level of coverage, deductible and months/miles selected. Our knowledgeable representatives can help you get the best price on an official Mopar extended warranty plan.
