When buying a used car one thought always seems to surface even if it is never spoken, “when will this car need a repair or maintenance?” One way dealers will try to give you peace of mind in your decision is by offering an extended warranty. But before you sign on the dotted line make sure you know all the details.
What is an Extended Warranty?
After a designated time the manufacturer’s warranty on a vehicle expires. Most warranties tend to last around three years or three thousand miles. Some cars can even have multiple warranties that vary from comprehensive coverage all the way down to seat belt coverage.
An extended warranty is a warranty that can be added to a vehicle once the first warranty has expired. But adding an extended warranty also means adding additional fees. And some fees may not be worth adding.
When you are purchasing a used vehicle be sure to do your research. Find out which cars have a longer road life or work best for your driving purposes. Will it be a commuter car, the family car, or the first car for your 16-year old? All of these questions will help you answer what type of coverage you will want to purchase.
Also before you sit down to sign on the vehicle find out what types of warranties are offered by the dealer. Warranties can come in many different varieties. Make sure you know exactly what the warranty does and does not cover and if there are any deductibles that need to be met on repairs.
Doing your research before hand eliminates the pressure you might feel when you sit down to sign for the car. Having a plan in advance allows you the freedom to make a wise decision instead of an impulsive one.
Seek an Expert
The best thing you can do to prepare yourself in making a decision to add on the extended warranty is to seek out an expert opinion. At Sallas Auto we deal with warranty companies often and can easily distinguish between a reliable warranty and a lemon.
The truth of the matter is that there are some extended warranty providers out there that sell reliable warranties, but there are others that, unfortunately, have a warranty that is not worth the money. Car dealers can often charge two to three times more for a warranty than what they actually paid for it themselves.
Think critically when buying a warranty. If the extended warranty is $2,000 and the deductible is $250 and the warranty pays for very little repairs, then the warranty is not worth the money invested. The dealer would be paying a minimal amount and the purchaser would be over paying.
If you are looking to purchase a used vehicle, don’t get pressured into a quick decision on the warranty. Making a wise decision on an extended warranty can be easily done with a little research and knowledgeable advice.
At Sallas Auto we are happy to lend our expert advice and help guide you through the process of choosing a warranty that would fit you best. Saving money and promoting safety is one value in which we pride ourselves.