Used Car Warranty
A used car warranty is normally available for purchase if you
buy your used vehicle from a dealer. The dealer normally has a
warranty company he works with and will usually ask if you want
to purchase an extended warranty. In many cases, a used car
warranty will come with your car, but sometimes it is only good
for 30 days or a few months at the most. Know when any existing
warranty expires, and think about purchasing a warranty if the
existing coverage is for only a short time frame.
With a used car extended warranty, you usually
have to take your vehicle to an authorized repair center to have
it fixed; otherwise you may have to pay a high deductible.
Fortunately, most of the larger warranty providers are part of a
huge network of repair centers all over the country.
If you are purchasing a late model used car, it
may still be covered under the manufacturer’s warranty. If this
is the case, always check to see if the warranty is
transferable before purchasing the car. When the car
comes out of its manufacturer’s warranty period, you can easily
purchase an extended warranty to keep it covered for a few more
years.
Why Buy a Used Car Warranty?
A used car warranty is important, as it covers the repair costs
in the event something goes wrong. Unless you are a mechanic or
know a lot about fixing cars, purchasing a used car warranty
will give you peace of mind in knowing you won’t likely get
stuck with a high repair bill a few months down the road.
Car repair bills can be cheap or expensive, and
it’s the expensive problems you need to make sure are covered
under your used car warranty. Items like the engine block and
transmission are terribly expensive to repair or replace, and
you’ll want to be sure your used car warranty covers this “big
stuff”. A problem with a major component can set you back
thousands of dollars if you don’t have a used auto warranty that
covers it.
Extended Warranty Pricing is Flexible
Extended warranties are usually not very expensive compared to
the price of repairs. Most used car warranty companies will
allow you to choose from several packages and several different
lengths of coverage. Shopping for a used car warranty is a lot
like shopping for car insurance – you can pick and choose from a
lot of options in order to balance your tolerance for risk with
the amount of money you can afford to spend.
Warranties come in a lot of different “flavors”,
depending on the make, model and age of your car as well as the
degree of coverage you want. You can purchase a used car
extended warranty that covers just major engine components, or
you can purchase one that covers everything. In many cases, a
used auto warranty can be “custom tailored” to meet your exact
needs.
What Dealers Don’t Want You to Know
Most people buy their extended warranty directly from the dealer
because they don’t know they can get it themselves for a lot
less money. Dealers will sell you a used auto warranty at a
price that’s around 50% more than if you were to buy your
warranty on your own. Extended warranties are a huge “profit
source” for dealers.
There are many companies that offer used auto
coverage, and you should shop around to find a good one. The
warranty companies you will find online are the same ones the
dealers use, only you won’t have to pay extra money to the
dealer.
One company I like is
SmartAutoWarranty.com. They offer a wide array of coverage
types and you can get a free quote online. They even have a
“live chat” on their website where you can ask questions and get
answers right away.
More Information on Extended Warranties
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