The Importance of Buying
an Extended Warranty with your Used Car Purchase
Planning to buy your next vehicle from a used car
dealership? You’re not alone; around 41 million used vehicles were purchased in the
United States in 2016.
Buying from used car dealerships is continually popular for
a number of reasons, not the least because it’s a terrific way to save money.
We all know many new vehicles are overpriced, and simply don’t appeal to the
countless drivers who just want a solid, reliable car without the added
features or gizmos inflating the cost.
Purchasing through used car dealerships is also far more
reliable and secure than buying from a private individual, with regulations in
place to protect consumers. On top of this, their dealers are well-trained,
knowledgeable, and will certainly let you take a test drive before you finalize
a purchase.
Still, one big question you might have about buying a used
car from a dealership regards your warranty. Many dealers provide one of several
types of standard warranties, varying from partial to full, with or without a
co-pay, and within a specific number of months or miles, although this may not
offer much coverage in itself. An extended warranty, though, may be available
at an additional cost. If so, it is usually well worth choosing one of these to
give you assurance that you won’t be faced with unexpected high repair costs
during the term of the warranty.
What is an Extended Warranty?
An extended
warranty (also often known as a service contract) is basically an insurance
policy on your used car. Investing in one will provide you with more peace of
mind and reassurance in the event of future problems.
The money you spend on your used car is invaluable, and you
never know what’s around the next corner. The thought of a breakdown in the
middle of a busy highway or a faulty transmission as you’re heading to an
important meeting is enough to inspire dread in even the most experienced
driver. Not everyone can find the money for a repair or new parts on the spot,
especially with other responsibilities and expenses devouring your income.
Even if you buy the least expensive vehicle available at the
dealership, you should discuss the possibilities of buying an extended warranty
for your car. Here are some of the key benefits.
Better Coverage Overall
Most reliable used car dealers will give you some type of a
warranty on your purchase anyway, but an extended one brings greater protection
overall. Should your vehicle experience any mechanical faults, your standard
warranty may only cover a small amount of the cost, leaving you to foot the
rest of the bill. At times, this is simply impossible, and if you depend on your
car every single day, your lifestyle could undergo drastic changes.
An extended warranty will normally provide you with much more
coverage, and for a longer time than the dealer’s warranty that comes with the
car. As a result, you’ll have more money to focus on other areas of your life,
or to put aside for an upgrade on future vehicles.
Your Contract May be Transferable
Depending on the provider you choose, your extended contract
may even have a lifespan greater than the amount of time you expect to own your
car. Perhaps you always buy used cars rather than new ones, or you’ve simply
invested in a second-hand vehicle to save money until you can afford to
upgrade. Either way, you might only expect to have this one for a number of
months before moving on to another model. You may even be able to transfer your
extended warranty to your next vehicle, if it hasn’t already expired. If you
able, this can provide even greater peace of mind in years to come, and save
you from having to invest in a second extended warranty (or service contract)
on top of the car’s price. This could be a big advantage if you choose to
invest in a used car at a low price to cover a short period of time (perhaps
while you save).
Boost Your Car’s Resale Potential
Selling your used car can bring in some much-needed funds,
especially towards your next model, but you can increase the value of the car with
an extended warranty. Not only does this provide your buyer with the same
reassurance and peace of mind you’ve enjoyed, it also demonstrates that their
purchase has been well-maintained during your ownership. You can maximize this
selling point by taking them on a test drive to show how well it still
performs. An extended warranty may be ideal for potential buyers too, as they
could be concerned about costs themselves, and this can help make your used car
stand out from others on the market.
Saving Money in the Long Term
You have certainly heard that old cliché about having to
spend money to make money. Well, it’s certainly true here. Paying for your
extended warranty may be an expense, but it may save you money in the long run.
An insurance or service policy on any item, such as your phone or your
computer, for example, can seem unnecessary until something goes wrong and you
can’t afford a new one. Your extended warranty reduces the risk of finding
yourself faced with an overwhelming bill in the unlikely event of a serious
problem.
Discuss an extended warranty with your used-car dealer to find
out your options. They may be able to offer you a special deal depending on the
price, and provide you with real peace of mind to help you enjoy driving your new
vehicle that little bit more. If you’re unsure how advantageous it will be on
your specific car, don’t be afraid to ask, they’ll be only too happy to go over
it with you in detail.
An extended warranty could make all the difference to your
experience of driving and maintaining your used car. The initial expense far
outweighs the potential costs of repairs or replacement parts, and may add to
the value of your purchase in the future.
