Ordinarily, people buy used cars because they can’t afford new ones or because they want a cheap offer. Regardless, it’s all about saving money. However, there are additional costs that you have to factor in when buying a used car. So, it’s not just about the car’s asking price.
One important cost that you have to keep in mind is the extended warranty. This warranty is there to protect you from expensive repairs as well as replacements. So, it’s not a question of if you should buy the extended warranty but a matter of when.
- When the Car’s Extended Warranty is Soon-to-Expire
Before anything, you need to consider if the used car has an existing extended warranty and if it’s transferable. If it’s not there or is not transferable, then you have to buy it as soon as you sign the purchase agreement. If it’s there and transferable, it’s necessary to consider the mileage extension left on it. If for example, the car has 20,000 miles left on it, it makes sense buying an extended warranty to stretch this coverage. However, if the warranty has 80,000 miles, it may a good idea to hold off the purchase at least for a couple of months.
- When Chances of Needing Repair are High
So often, you pay for something that you may never use. However, this doesn’t negate the importance of a used car warranty. However, it’s important to consider the likelihood of suffering repairs. If, for example, you plan to use the car on a daily basis, the chances of needing repair services are higher. If you fear that the repairs will be more expensive, then you should get the warranty.
- When You Always Want a Car with You
Most used car warranties provide you with the benefit of getting a free loaner vehicle as yours is fixed. There are others which allow the repairer to pay for a rental car in absence of a loaner car. Such offers are very helpful if you depend on a car to go to work or to take your kids to school.
When Is Buying Used Car Warranty Not a Great Idea?
Since you already know the circumstances when buying a used car warranty is a great idea, it’s time you know when it is not. Here are the situations where you may have to think twice before buying an extended warranty:
- When you prefer a specific garage: Some warranties come with their own approved auto shops. So, opting for such a provision doesn’t make sense if you have a certain garage in mind.
- When the maximum amount you can claim is way lower than the value of the car: In most cases, the claim limit is tantamount to the worth of the car. It’s wise to consider such warranties.
- If the car is approaching its age limit: Each warranty has a predetermined age limit. So, if the case is nearing it, there’s no need for an extended warranty.
Clearly, you need a used car warranty. Otherwise, you risk suffering repair costs that you are not ready to face. Since buying a used car is all about saving, it doesn’t make sense paying for something that would have been covered by a warranty if only you bought it.