A used car warranty can be a good investment if it comes from a reputable provider. However, it is important to review the coverage and price to determine whether it is worth it for you.
Compare different plans side-by-side for the car components they cover, as well as their deductibles. Be sure to consider roadside assistance and rental car reimbursement, too.
Cost
When shopping for a used car, consider an extended warranty. These plans, also known as MBI or VSC, offer coverage that could bridge the gap between your car’s manufacturer warranty and your ability to pay for major repairs.
These warranties typically cover repair costs at any licensed repair shop. They may even include extras like roadside assistance, towing and rental car coverage. However, these perks are often subject to specific terms and conditions.
It is important to research the different options and terms of these warranties before making a decision. Ultimately, the decision to buy an extended warranty depends on your budget and risk tolerance. If you know that the average cost of repairs for a used vehicle are low and you have a budget set aside, an extension may not be necessary.
Coverage
When buying an extended warranty, be sure to understand the coverage provided. This will help you decide whether it is worth the peace of mind. The best way to do this is to compare different companies’ warranties and prices. It is also important to consider the terms and conditions of the policy, including any ancillary costs.
Some extended car warranties include extras such as roadside assistance and rental car reimbursement. These extras can add up quickly. You should also find out if the warranty is transferable if you sell the vehicle, and if it covers any deductibles that might be associated with repairs.
In addition, it is important to know how long the warranty lasts. The coverage usually starts when the manufacturer’s bumper-to-bumper and powertrain warranties expire.
Exceptions
When considering a used car extended warranty, you should be aware that the plan may exclude routine maintenance and typical wear and tear items. This is because the warranty administrators take on more financial risk and must sell the plans at a higher wholesale cost in order to make a profit.
Depending on the plan, you may also want to consider whether the company has an excellent reputation. This is especially important following the bankruptcy of US Fidelis and the criminal indictment of its founders.
The other major factor to consider is the vehicle’s reliability. This can be determined by researching online reviews and rankings, as well as asking friends and family about their experiences with a particular model. If a vehicle has a poor reputation for long-term quality, you might be better off forgoing the extended warranty altogether.
Deductibles
Depending on your financial situation, budget and risk tolerance, an extended warranty may not be for you. However, many drivers find that a great plan provides peace of mind and helps with budgeting.
You also need to understand how deductibles work for your specific plan. Most warranties require the policyholder to pay for a certain amount of the repairs before the insurance company covers them.
Premium extended warranties may cover electronic components, such as stereo systems and navigation systems. They also may offer roadside assistance coverage. In addition to deductibles, you should also consider yearly mileage restrictions, waiting periods and the total number of years the plan lasts.
Negotiating
When you buy a used car, the manufacturer’s bumper-to-bumper warranty is likely expired or in the process of expiring. An extended auto warranty, also called a Vehicle Service Contract (VSC), may help protect your financial investment from unexpected repair bills.
You can shop and compare warranties online, through a warranty provider or at a dealership. Some plans include extras such as roadside assistance, towing, rental car coverage and trip interruption reimbursement.
You should request multiple quotes, and understand whether the terms are transferable to future owners. Then you can make a smart decision about whether an extended warranty is right for you.extended warranty on used car
