Are Extended Warranties on Used Cars Worth It?

When you are about to heave a sigh of relief upon completing all the paperwork for buying a used car from a dealer, you are taken to an inner chamber of the auto showroom and are shown various other products to accessorize your latest purchase, like theft-recovery systems, paint protection, road-hazard warranty and more. The major amongst these is an extended warranty. To avoid getting dizzy with the numerous alien terms, do your homework regarding whether extended warranties on used cars are worth it.

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Don’t Get Pressurized

As mentioned earlier the salespersons of the dealer may talk to you about various options of warranties and coverage, amongst which a major one is extended warranty. But after all, their job is to sell those products to you. So, they may pressurize you in a variety of manners. You may not even understand that you are being compelled to buy their products. Don’t do that mistake. Even if you feel that you need the extended insurance, don’t go with their offer readily; you better invite an extended car warranty quote and choose the best one, if you really need an extended warranty.

Give a Thought Beforehand

It’s always recommended to think beforehand about a potential damage caused to the car and expense of repair. Think how much that will shake your household budget. If you get goosebumps with that thought, extended warranty would be the best choice. Especially if you have a tendency to use your cars for long, i.e. beyond the period of the manufacturer’s warranty or distance, extended warranty is advisable.

Consider Company’s Reputation on Priority

Though it is wise to consider who is offering the lowest price on the extended warranty, it is more important to check which company is offering that. You should consider whether that company is reputable; if not, you should leave the thought of making a deal with them. A reputable company may seem to cost a bit high, but may prove to be reliable whileclaiming for any damage to your car.

Make A Fair Comparison

You might plan to buy an extended warranty because it is cheap. But check what you are getting in return. For example, the cheapest warranties may offer you coverage against only some major damages, while mid-priced ones may cover even some regular wear and tear. And the priciest warranties often include “bumper to bumper” coverage for almost all sorts of repairs. You should also compare deductibles and how to pay for the repairs.

Some warranties require you to pay first and then claim for partial reimbursement, while others may require co-pay. Some warranties even ask for a proof that you perform the routine maintenance regularly. In short, you will have to check the terms finely and make a fair comparison.

Check if there are Other Benefits

Some extended warranties may include some additional benefits which too you can check. E.g. you may be offered a free loaner car upon bringing in your car for servicing. This is an extremely useful feature because you get a car when you need it in the absence of your car. A free towing service is also an additional benefit some warranties offer, in case of a breakdown. With such extras, you can make the most of your extended warranty.

An extended warranty is also advisable in many other situations like in case you import cars from UK or any other country, when the car is pricey and may cost you a lot in case of any repairs. So, think upon it well and then take a decision that will give you a great peace of mind.

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