Extended Warranties For Used Cars – When Does an Extended Warranty Make Sense?
If you are in the market for a used car, then you may be offered the opportunity to purchase an extended warranty. These warranties are designed to cover your vehicle in the event that it breaks down or requires expensive repairs. They can be purchased from third-party providers or through the dealer. However, the pricing structure is not transparent and the cost of the coverage can vary dramatically. The best way to avoid getting ripped off is to go to the dealership prepared with all your options. Researching MBI and VSC costs before you buy can help you decide if the offer is right for your needs.
When Does an Extended Warranty Make Sense?
Most buyers would agree that having peace of mind when driving a used car is important. However, it’s not possible to predict what will break down or when it will happen. A used car with a stellar reliability rating, a clean pre-purchase inspection and a stack of service records from a meticulous owner can still experience a costly repair. Whether an extended warranty for a used car is worth the money depends on several factors, including your budget and your driving habits.
The type of coverage you need to purchase is also an important factor. Inclusionary plans cover the most common components, but exclude items that require routine maintenance. Exclusionary warranties are more comprehensive, but will often cost more. You should also consider the deductible. Many warranties have a $100 to $500 deductible that you will be responsible for in the event of a claim. A lower deductible will reduce the overall price of the warranty.
Buying an extended warranty can save you thousands of dollars in the event of a major breakdown. However, if you are confident that you have the cash on hand to pay for an unexpected repair, then you may not need to spend money on a warranty. Ramsey recommends that drivers create an emergency fund to cover car repairs, and that the money they don’t use can be used toward their next vehicle.
If you plan to keep your used vehicle for a long time, then an extended warranty may provide value. However, if you plan to trade in the car or sell it within a few years, then a warranty will not be necessary.
When deciding whether an extended warranty for a used car is the right fit for your vehicle, you should always consider the pricing, deductible and coverage options. Increased competition among third-party providers has driven down the prices of these warranties, and you should compare options to find the best deal. In addition, you should research makes and models to learn about reliability ratings before making a decision. Finally, remember that you can return a car within 3 days if you are not satisfied with the extended warranty. This will give you time to find the right coverage for your vehicle. extended warranty for used car