Do You Need a Warranty for a Used Car?
Some consumers purchase brand-new vehicles off of dealership lots or showrooms. The rides come with manufacturer warranties that cover systems and components. Then, when something goes wrong, the owners don’t have to pay the costs to fix them out of pocket. Instead, the warranty companies pick up the tabs.
Meanwhile, other consumers go a different route. They buy pre-owned cars rather than new ones. This decision can typically save individuals money. That is because the average price for a new vehicle is over $47,000 these days. However, some risks are involved with buying used. For example, the machine could have a significant mechanical breakdown shortly after the purchase, leaving you stuck between a rock and a hard place.
Obviously, you’ll need to get the issue resolved so that you can begin driving the car again. But, the fix might be expensive, depending on what the problem is. For instance, if the transmission needs to be replaced, that job can run you $4,000 to $5,000 at a local shop. Then again, if the brake line on your car must be changed, you should expect to spend around $1,000 to have the task done by a professional. That’s why you should invest in a used car warranty for your pre-owned vehicle.
Should You Obtain a Warranty?
The simple answer to this question is yes, you should purchase an extended warranty for your used vehicle. Of course, people don’t necessarily need these safeguards, but these warranty policies can certainly come in handy. This is especially true if you don’t know the detailed history of the used car you’re buying.
The initial cost of these guarantees varies. For example, you might be able to buy a warranty policy for around $1,000. But, then again, the price could be closer to $4,000. Factors that affect the total include:
- Vehicle make and model
- Warranty provider
- Car condition
- Deductible
However, after you get the policy, you will only need to pay your deductible at the time of service. So, if the deductible is $100, that’s what you’ll be charged when repairs are necessary, and the warranty company will cover the rest of the expenses. As such, it’s a good idea to get your hands on one of these products, if for nothing else, to give yourself a financial safety net for car repairs.
Peace of Mind
Nobody wants their car to break down, but sometimes, that is exactly what happens. Then, they are left stranded on the side of the road somewhere until a tow truck or friend arrives to pull them to a mechanic shop. Unfortunately, this could be a common occurrence with used cars, especially those that have racked up the miles.
Don’t let a scenario like this arise and cause you grief. Rather, invest in a car warranty and gain peace of mind knowing that you’ll be able to afford repairs whenever problems enter the picture.
Increase a Car’s Value
If you’re planning on trading in or selling your vehicle soon, now could be the perfect time to get a vehicle warranty. Cars that have these safeguards are typically well maintained. Thus, a dealership may give you more money than it probably normally would have. Or, if the warranty is transferrable, that can increase your ride’s value.
As such, you’ll likely be able to sell the vehicle for a reasonable rate. The warranty could even help the car fetch more than its full appraisal amount.
Other Extended Car Warranty Perks
What about 24/7 roadside assistance? That is a perk that typically comes with an extended car warranty. But that isn’t all. People who purchase these products usually get towing, rental car coverage, gas delivery, and trip interruption protection as well.
Warranties are available through manufacturers and third parties. Therefore, the perks offered from one product to the next will vary. So, take the time to read the fine print to ensure your purchase decision meets your specific needs.
Some Final Words
These are some of the reasons why vehicle owners should invest in car warranties. There are tons of benefits associated with such safeguards. For example, obtaining a policy could be good for your mental health by providing you with peace of mind. Not to mention, the plan might increase your car’s worth. All these benefits make it a good idea to get a warranty for a used car.