Is an extended warranty on a used car a good choice?Every used car customer will face this question while buying a second-hand car from a reputed dealership. Of course, the dealers selling used cars will brief the customer about the extended car warranty. Nonetheless, it may confuse a client who doesn’t know much about an extended car warranty.
Is buying an extended warranty on a used car worth it?
Yes, if you are looking for a direct answer. An extended warranty insurance is advisable when buying a used car. The second-hand vehicle will have a warranty provided by the dealership. The extended warranty will cover the additional period or kilometers, whichever is earlier. This may land you in another question, why do you need it?
Although genuine dealers would have undertaken inspection and repair before placing the car for sale, the extended warranty delivers you with amplified confidence. The second-hand vehicle with an extended warranty can be exploited rigorously without considering the expenses involved in replacing the components. Furthermore, an extended warranty increases the resale value of the car.
You must confirm the following before opting for an extended warranty on the used car:
- What does the warranty cover?
- Whether the components included in the insurance are also there on the warranty? In that case, you may request customization of the contract.
- Is there an additional hidden charge?
- Are the components and accessories exempted?
- Availability of service centers around the region?
- Client testimonials about the warranty service of the firm?
Once you have confirmed all the aspects mentioned above to your satisfaction, you can go ahead with an extended warranty insurance.
How much should you pay for an extended warranty on a used car?
Most used car dealerships offer extended warranties for the cars they sell. You can choose to buy an extended warranty from the dealership or a third-party agency. There would be additional offers as part of the deal, and you can save money whilst going for the same. As you can understand, the cost of service, spares and maintenance differ depending on the brand. It is also applicable in the case of the cost involved in purchasing an extended warranty.
What should you consider for a used car warranty?
You must review the warranty documents, identify the exclusions, and confirm the services offered before buying the extended car warranty.
Warranty Limitations – Read the document to understand the scope of work, defects that are not covered, the process for claiming an extended car warranty, and other important factors.
Coverage Options – The dealers selling used cars may propose options that may differ in periodicity, vehicle coverage area, and so on. You must be able to confirm the type of warranty you want. For example, the manufacturer warranty will be bumper-to-bumper or similar. It may be different in the case of the dealership warranty.
Servicing Options – You may have to find the dealer-approved workshop or the service center branch in case of an extended warranty from the dealership. This may turn problematic if the dealer doesn’t have a wide presence in the region where you are buying the car. Ask the executives and obtain the list of authorized technicians or workshops for undertaking warranty repair.
Costs – Not all warranties are the same. The price for the extended car warranty for the used car you bought will be different from a different dealership. However, the coverage offered will be more or less similar. Why should you pay more when you can get the same service at less cost? Discuss the charges, including hidden charges, before accepting the deal.
