Extended New Car Warranty Should You Buy – When you buy a new car, it usually comes with a manufacturer’s warranty of about three years or 36,000 miles. But what happens when you buy a used car? If you are buying a car that is more than a few years old, the manufacturer’s warranty may still be active.
However, when you buy an older used car — without a manufacturer’s warranty — you may have the option to purchase an extended used car warranty. Here we take a look at exactly what an extended used car warranty is, along with the pros and cons of buying one.
Extended New Car Warranty Should You Buy
A used car warranty – also called a vehicle service contract – can start where the manufacturer’s warranty ends. After three years or the 36,000 mark, you can apply for an extended warranty with a third party. This third party will issue an invoice if your vehicle or its components are damaged during normal use.
The Importance Of Buying An Extended Warranty
The best extended used car warranty covers the cost of parts and labor needed to repair your car when the cover fails. But most don’t want to cover repairs related to vandalism, theft, bumps, dents or routine maintenance.
It’s also important to note that every extended warranty or vehicle service contract is slightly different. It is important to carefully review your coverage options and understand how much you are paying for coverage.
Some used car extra warranties only cover certain parts of the car. For example, the engine and transmission (also known as the power system). A bumper-to-bumper used car warranty covers almost every auto part, although there are still some exceptions.
How To: Best Price On A Used Car Auto Warranty
You can pay for a used car warranty upfront, finance it with a car loan, or maybe even pay the warranty monthly.
Buying a vehicle service contract is almost always a good decision. Modern cars are complicated. Auto parts are expensive, the labor involved in installing those parts is expensive, and both of these costs rise every year without fail.
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A used car warranty is a type of car insurance, and like other types of insurance, we hope you never have to use it. However, an extended used car warranty can provide peace of mind, even if the car has been well inspected.
Is Extended Warranty On Cars Worth The Money?
Whether or not you should buy an extended used car warranty depends on a number of factors. Hesitant? Check out these pros and cons!
Are you buying a car through? We’ve made it easy for you to get extended service contracts that fit your needs and budget — without leaving the platform.
Choose good, best and best used car warranties, choose everyday items coverage or choose comprehensive coverage. And remember that the service doesn’t end there. We’ve gone the extra mile to help customers bid and buy with confidence.
Understanding Extended Warranties: An Insider’s Guide
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I would never buy an extended warranty on a new car. But when someone asks if they should buy it, I have a different answer: It depends.
I have spoken to hundreds of car buyers over the years and found that the decision to purchase an extended car warranty is a very personal one and instead. Many people are looking for peace of mind, and a warranty can provide that.
Protect Your Investment With An Extended Warranty
Either way, it’s a good idea to make up your mind before walking into the dealership’s sales office and making the hard sell. Here’s how to get there.
Almost all new cars come with at least a three-year, 36,000-mile warranty. For many products, the warranty is longer.
If you keep or lease your car for less than the manufacturer’s coverage period, you do not – I repeat, do not – need an additional warranty.
Should You Walk Away From A Used Car Extended Warranty?
If you plan to keep your car until the wheels fall off, consider purchasing an extended warranty that covers repairs for five to six years or more.
The warranty does not cover oil changes, brake services, tires or other “consumables”, meaning items that can wear out. A former car dealer recently told me that only 1 in 10 people who buy an extended warranty continue to use it. A Consumer Reports study concluded, “Car owners often pay more in premiums than they get in direct benefits.”
Look at it the other way around: they won’t sell you a warranty if they really think you’ll use it. As a wise friend of mine who understands the automotive industry used to say, “I’m ready to roll the dice.”
Should I Buy An Extended Warranty On A Used Car? (2022)
Most cars come with an electrical warranty that starts after the bumper-to-bumper warranty expires. For example, Chevy has an electrical warranty that lasts five years or 60,000 miles. If something goes wrong with the car’s electrics – those parts that move the car down the road – it’s covered. Grant.
But if the door handle is broken or the window can’t be opened, you have to pay to fix it.
Imagine telling a financial planner that you’re going to give someone $2,000 today for a product you won’t use for three years. They’ll say you’re not smart. But many people buy an extended warranty when they buy a new car and that warranty isn’t valid for three years!
Best Extended Car Warranties Of 2022
Buying a warranty when you buy a car is, of course, simpler; you can convert the money into your monthly payments. And most warranties are transferable if you decide to sell.
Consider opting out of the extended warranty at the time of purchase. Then, as your car approaches its third birthday, look for extended warranties. You’ll know two things at the time that you didn’t know when you bought a new car: how much you love it and how hard it was.
Dealers offer guarantees based on the worst possible scenario: the electrical system breaks down and the bill will be three thousand. Or, transmission crashes. Yes, it is possible. But it is very likely that you have a leaking water pump or a faulty oxygen sensor.
Who’s Making All Those Car Warranty Spam Calls?
Let’s say you’re tempted to buy the $1,200 extra warranty (although many people pay more), but you refuse. After that, you still get the $600 repair. Ouch – but you still have $600 before the game.
I would never tell anyone to lie. But sometimes you can use subtle words to deflect aggressive pitches from trained salespeople to overcome your objections.
So if you’re faced with a salesperson who won’t take no for an answer, try this: “I change my cars every three years.” The word usually prevents you from lying. And there is no way for the seller to overcome this objection.
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And, by the way, if you’re reading this after you’ve already purchased an extended car warranty, here’s a fun fact to cheer you up – you can cancel your extended warranty at any time and get a hefty discount.
About the Author: Philip Reed is a manufacturing expert who has written syndicated charts for USA Today, Yahoo Finance and others. He is the author of 10 books Read more
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Extended Car Warranty: Is It Worth It?
Sign up and we’ll send you nerdy articles on the finance topics that matter most to you, along with other ways to help you get more bang for your buck. A longer car warranty isn’t for everyone, but it can make sense in some situations. Use the decision tree below to help you decide whether or not you should consider an extended car warranty.
* If you own a vehicle that still has a manufacturer’s warranty remaining, especially the first, “full” warranty, you are in a good position. Most manufacturers will sell you an extended warranty directly from them, but before your new car warranty expires. If you already think you might want one, move before the original warranty expires. It gives you options that you won’t get later. However, before you do this, check what your full warranty is for the vehicle you own. Hyundai, for example, covers its first-time owners for up to 100,000 miles or ten years. Don’t buy what you already own.
Endurance is a leading auto insurer that sells and manages its own policies. The company is strong in the market and has received good reviews. You can read our full Endurance review here.
Is An Extended Used Car Warranty Worth It?
CARCHEX is a flexible car warranty company that offers drivers a wide range of options
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