Warranties are tricky things, and often something consumers don’t fully understand. They get that a warranty can be a good thing—but they’re not always sure what it covers, and how to get things “fixed” when it’s under warranty.
Vehicles can be thought of as a major purchase. With new cars, you are usually under warranty for a specific amount of time. But what about used cars? Have you ever been asked if you want an extended warranty during a used car purchase and promptly turned it down? Next time, don’t be so hasty. Understand warranties before you say no or balk at their cost. Instead, consider a few reasons why am extended warranty may just save you in the long run.
What is a Warranty?
In today’s world, it’s important to understand warranties are, and what to do with them. A warranty defined is, “a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.” In regards to cars, trucks and SUVs, warranties aren't an article, but parts of the vehicle.
There a few bits of information you should research and know before purchasing a warranty for your used car. They are:
- Length of time the warranty is for and what it covers
- Cost of the warranty
- What is covered under existing warranties (for example, original manufacturer warranties)
- Who is covering the parts (or who is supplying the warranty)
- What you need to do to activate your warranty
- How to report an issue and get coverage from your warranty
- Are you allowed to use any auto repair shop
- What’s the reliability history with the model/make you’re purchasing
- What does the deductible look like on your extended warranty
- Is the warranty transferable
- Do you have to pay cash for a repair and then submit for reimbursement, or do you only pay the deductible
- Is the warranty a CPO (certified pre-owned) warranty – These warranties are sometimes more effective, and give purchasers greater peace of mind because a car maker isn’t likely to cover a vehicle that needs consistent repairs
3 Reasons for Considering a Warranty for Your Used Car
Let’s say you’ve found the used car of your dreams and are sitting in the dealer’s office; they ask, “do you want a warranty on the used car you’re purchasing?” Well, here a few reasons to consider it:
Warranties can be altered to fit the situation. Some of the equipment on your new (used) ride may still be under warranty—and that’s great, because with an extended warranty you often have more options. Basically, it means you are able to extend some of the warranties that have expired, but will still have the original warranties from the manufacturer as well.
Extended warranties may end up covering very costly repairs. One of the biggest issues today’s auto mechanics are seeing in cars are technology issues. Computers have become a big part of cars, and it's commonly known, computers mess up, a lot. Extended warranties will cover some of these costly repairs, plus, they’ll also cover other types of costly repairs, like engine replacement or other failed mechanics. One of the most popular extended warranties is a bumper-to-bumper extended warranty, which basically covers everything between the bumpers for a specific period of time. However, some of the things that are typically not included are things like third-party electronics, seatbelts that are suffering from normal wear and tear, headlights and regular maintenance costs (think oil and other fluids). The benefit to an extended warranty is some extra peace of mind with your used car purchase. However, always make sure you know what’s covered before purchasing an extended warranty.
The dealer can help you. Used car dealerships are usually very adept at handling everything you need to do to get an extended warranty. This can make the process much easier rather than researching and purchasing one yourself. Dealers can explain everything in detail and handle all the paperwork. They’ll also let you know what you need to do moving forward.
A warranty isn’t a requirement when purchasing a used car, but it can be something that ensures that an unexpected issue won’t break the bank. However, it all comes down to what works for you, and if you feel a warranty is worth it.
