The Used Car Warranty

1985 Chevrolet Camaro1985 Chevrolet Camaro

Have you decided to purchase some kind of a used car warranty? If your new ride is a 1985 Camaro then you probably won't.

However, if the car is less than 10 years old you'll want to find out more about the possible warranty coverage available. For people with a little savings in the bank I recommend a dedicated emergency fund for car repairs.

For others living on a tight budget having a warranty on a used car could be important. Especially if you get blind sided with a sudden car problem and find it impossible to pay for.

On the other side of this coin is the problem of having the wrong warranty. This is when a car problem isn't covered when the owner thought it would be.

Your salesperson or finance and insurance person will offer you the option to purchase an extended warranty at most car dealers. Sometimes they offer good coverage and fair pricing. Just do a double check before you sign a contract.

Some extended warranties are incredibly valuable and some are a waste of resources. Often this will depend on your needs and the vehicle you're buying. Below, you'll find a guide to several options when purchasing a used automobile.

Why You Need a Warranty

Extended warranty policies can pay for numerous items when they fail. This can eliminate a large amount of out of pocket auto repairs.

But remember that they will not pay for certain items such as oil changes, and other standard maintenance items. Also not covered by most plans would be regular repair items like a standard brake job.

Even used car warranty purchases that cover all scheduled maintenance for a year really don't provide much in the way of reimbursement. This is because the covered maintenance stuff is usually about 2 oil changes and a tire rotation.

This might total around 100 dollars of benefits depending on the mileage of the vehicle. Understanding the remainder of the factory coverage is import in the decision process. Some cars came with 2 years scheduled maintenance from the factory.

The factory and extended warranty are designed to provide benefits in case of defective parts or poor workmanship.

The base bumper to bumper and powertrain coverage is always primary. Overlapping coverage is often considered wasteful spending. For example, if an engine block fails due to a porous casting your used car warranty will replace the damaged part if the factory coverage has expired.

Some car makers provide power-train coverage for 10 years 100 thousand miles. However they often carry a deductible of $100 to $300 per incident. In addition bumper to bumper coverage might cover interior parts.

factory car audio system

Expensive premium sound audio units can fail, trim peels or breaks and dashboards crack from sun exposure. All of these items can be covered under the manufacturer's warranty, provided you are within the mileage and time requirements set forth by the automaker.

If you're purchasing a used vehicle find out if there is the remainder of a manufacturer warranty on the automobile. This is more important today then ever before due to long periods of factory coverage.

Often this transfers to the new owner until the vehicle reaches the age or mileage at which the warranty is no longer valid.

If the target unit does offer a substantial balance of manufacturer coverage this should add value. Warranties are beneficial and pay for needed repairs when they are in place. Having a manufacturer's warranty is a dramatic benefit.

Used Car Extended Warranty

At some point during your purchase you will be asked if you would like to purchase an extended warranty for your vehicle. The salesperson may make this sound like a necessity.

Remember that there is really no good reason for having overlapping coverage. Determine if the warranty is a worthwhile investment for your needs.

For instance if the car has a large amount of manufacturer's warranty remaining and you don't intend to drive the vehicle past this point, you will not need an extended warranty. In addition pull out you're shovel and dig deep to find out the details and hidden costs before choosing to purchase it.

Cadillac hybrid emblemCadillac Hybrid Emblem

Many automotive consumers fail to take some costs into account. What if the purchase price of the warranty seems to be reasonable, but the deductible per use is high?

This could be trouble in an emergency. Is there a restriction in the contract for the number of uses in a certain time period? Is there exclusions for hybrid vehicle repairs?

Is there rules about using specific dealerships, repair services or tow services? Better to find out now instead of running into unexpected charges later. All of these things should be factored into the total cost of the warranty and your decision making process.

An extended warranty can be valuable. Often consumers find themselves saddled with a contract that offers few real benefits and only increases ownership costs. To avoid this problem find a policy on your own.

I have a lot more information on the subject of used car purchases. This next link will take you to the used cars information page.

Find out what else is available on this automotive website on the homepage. Also find out why the car mechanic that built it has decided to answer questions about cars.