Why Do I Need a Used Car Extended Warranty? How Long Is an Extended Warranty Worth it for a Used Car?

What is an Extended Warranty?

An extended warranty, also known as a vehicle service contract, is an optional plan that you can buy to help you pay for the cost of certain repairs your vehicle may need while you own it. It usually begins when the manufacturer’s warranty expires, but sometimes the two overlap. An extended warranty provides coverage to fix parts and labor if a breakdown occurs due to a manufacturer defect or normal wear and tear. While it doesn’t cover everything, it provides peace of mind knowing that you have a safety net to protect against costly repairs. The cost of an extended warranty will depend on the type of coverage you choose and the make and model of your vehicle.

What are the Benefits of Buying a Used Car Extended Warranty?

1. Extended coverage for major parts of the car

An extended warranty for a used car covers major parts including the engine, transmission, gaskets, axles, as well as roadside assistance such as towing and tank of gas if you’re stranded. It may also include reimbursement for a rental car or for hotel rooms you have to cancel if you have to stop your trip due to car issues. The most comprehensive extended warranty plan is the bumper-to-bumper warranty which offers coverage for almost every vehicle part excluding routine maintenance and wear-and-tear damage. However, this plan may not cover some specific items like tires or brake pads.

2. Reduces the risk of costly repairs

Buying a used car extended warranty can reduce the risk of costly repairs by providing extra coverage for parts and systems that could fail due to age and wear. This can provide peace of mind when buying a used car and help protect you from the financial burden of expensive repairs. Extended warranties are not the only way to cover expensive repairs, however. Routine car care and maintenance can help you get the most out of your car and reduce the risk of costly breakdowns. Additionally, researching the predicted reliability of a used car before purchase can help you make an informed decision and avoid buying a car that is more likely to need expensive repairs. Ultimately, extended warranties can be an effective way to reduce the risk of expensive car repairs but there are other options to consider before making a purchase.

3. Allows for preventive maintenance

A used car extended warranty can help with preventive maintenance by providing protection against costly repairs, offering multiple plan options that are tailored to the individual’s needs, allowing for visits to any repair shop, and providing transferable and cancelable coverage. This means that owners will be able to keep their car in good condition and avoid costly repairs down the line.

Regular car care such as oil changes and alignments are important, but a car can still experience costly repairs over its lifetime. With an extended warranty, these costs can be greatly reduced, allowing owners to maintain their car without spending a lot of money.

At the same time, it’s important to note that not all plans offer the same coverage and some may not cover certain maintenance requirements. For example, a warranty may not cover oil changes or tune ups. It’s important to carefully read the terms and conditions of any warranty plan before buying to make sure it will provide the coverage you need.

Finally, it’s important to remember that while an extended warranty can provide peace of mind, it’s not the only way to cover costly repairs. Self-insuring by not purchasing a warranty is also an option. Ultimately, it’s up to the individual to decide which option is best for them.

4. Covers potential warranty issues

A used car extended warranty can provide protection against costly car repairs due to unexpected issues. Types of issues covered by a used car extended warranty can be divided into three main categories: mechanical issues, rust and corrosion, and wear and tear.

Mechanical issues often arise as vehicles age, so a used car extended warranty can provide protection against these unexpected issues. Examples of mechanical issues covered by an extended warranty include engine failure, transmission problems, fuel injection problems, and electrical system failures.

Rust and corrosion can also be costly to repair, and a corrosion warranty can provide coverage for damage associated with rust and corrosion. This type of extended warranty is particularly useful for drivers in areas with high rates of rust.

Finally, wear and tear items are not typically covered by an extended warranty. Examples of such items include tire wear, brake pad wear, and windshield wiper wear. It is important to read the contract associated with any extended warranty to ensure you understand exactly what is covered.

5. Provides peace of mind

Buying a used car extended warranty can provide peace of mind in several ways. Firstly, it can save money on costly repairs, as it will cover the expenses instead of having the customer paying for them. It also offers multiple plan options to fit the customer’s needs, allowing them to customize their coverage. Having the ability to visit any repair shop and the option to transfer or cancel the warranty at any time adds to the customer’s convenience. Furthermore, having an extended warranty provides peace of mind as it serves as a form of insurance. It offers protection from unexpected repairs, which can ease a customer’s worry and stress about having to pay for them. Knowing that the extended warranty will pay out if needed can help individuals take road trips without the fear of potentially expensive repairs. All in all, an extended warranty can provide peace of mind for customers when buying a used car.

6. Offers access to 24-hour roadside assistance

Depending on which extended warranty you choose, you may have access to various roadside assistance services. With Endurance, for example, you can enjoy a 30-day money-back guarantee and complimentary 24/7 roadside and towing services to get you to the nearest repair facility, rental car reimbursement and trip interruption coverage. Driveway offers a Vehicle Protection Plan that includes emergency roadside assistance, labor costs for repairs, rental car reimbursement, and emergency travel expense reimbursement. Ally Flex Coverage also provides reimbursement for car repairs, so be sure to read the details of the warranty carefully.

7. Coverage for wear and tear

A used car extended warranty usually provides coverage for mechanical breakdowns due to defective parts or poor workmanship, but doesn’t usually cover specific items such as tires or brake pads. These items are considered “wear and tear” and are not covered under the warranty. However, some extended warranties may include “corrosion warranties” which cover damage associated with rust and corrosion, which can be especially damaging for cars. This type of extended warranty may be particularly beneficial for those who live in areas with high levels of environmental damage.

8. Allows for cash payments in case of a claim

The purchase of a used car extended warranty can help with cash payments in case of a claim by providing peace of mind against unexpected costs. If a person has saved up enough money to pay for potential repairs on their own, they can choose to self-insure. However, extended warranties provide an additional layer of protection, as they pay out only when needed. Furthermore, if a person is planning to sell their car within the time frame of the coverage, they may be able to transfer the warranty to the buyer, which could lead to a better sale price. With an extended warranty, a person pays their deductible along with any uncovered items and they are back on the road quickly.

9. Allows for coverage of new parts

The purchase of a used car extended warranty allows for coverage of new parts when compared to a factory-backed plan. Unlike a factory-backed plan, the price of a used car extended warranty is often lower and provides more flexibility in terms of where you can service your car. Additionally, with an extended warranty, you are able to use new, used, and remanufactured parts. However, factory-backed plans offer the convenience of a dealership’s service department and the use of new parts. Furthermore, an extended warranty may also provide additional benefits such as 24/7 roadside assistance, rental vehicle coverage, and trip interruption prevention (not available in Kansas). Ultimately, the purchase of a used car extended warranty offers an effective way to cover new parts while providing added benefits not available with a factory-backed plan.

10. Cost savings compared to other insurance options

Buying an extended warranty for a used car is a great way to save money compared to other insurance options. With olive.com, you can get multiple plan options, visit any repair shop, and choose the deductible that makes most sense for your budget. Furthermore, prices are fixed for the life of your term and you can cancel at any time. This level of control and flexibility allows you to make an informed decision about your coverage that is tailored to your car, needs, and budget.

In contrast, many MBI/VSC companies only provide one option, and require you to pay it all up front. With these companies, you have limited options for coverage and deductible, and are locked into long-term contracts with fluctuating rates. Additionally, they may employ high-pressure tactics to ensure that you don’t cancel and they employ auto-dialers to call you multiple times per day.

In conclusion, buying an extended warranty for a used car with olive.com gives you the freedom to choose the coverage and deductible that works best for you and your budget. You can also rest assured that you won’t be subject to high-pressure tactics, auto-dialers, or fluctuating rates. So, if you’re looking to save money on costly repairs, buying a used car extended warranty is the way to go.

How Much does a Used Car Extended Warranty Cost?

When it comes to extended warranties for used cars, the cost varies depending on the model, year, mileage, and condition of the vehicle. On average, the cost range can be anywhere from $1,700 to $3,000. Deductibles range from $0 to $250, though you may find more affordable options with third-party providers such as CARCHEX. Our survey found that about half of respondents paid between $1,615 and $3,208 for an extended car warranty.

For a closer look at the cost of an extended warranty for a used car, we collected pricing information from five of the best used car warranty companies for a Subaru Outback with 88,000 miles. All of the plans included a $100 deductible, and the quotes ranged from $350 to $700 per year. Depending on the provider, you may be able to pay for the plan in installments or upfront.

If you’re looking for customized coverage tailored to your budget, Endurance offers plans starting at just $79 per month. No matter what type of coverage you’re looking for, it’s important to compare different providers and plans to make sure you’re getting the best value for your money.

How Long is an Extended Warranty Worth it For a Used Car?

An extended warranty for a used car can be worth it in a few different ways, such as obtaining more coverage than what is paid for and providing peace of mind. This is especially true if the car isn’t extremely reliable, or if it is prone to certain problems such as transmission issues. When determining whether an extended car warranty is worth it, drivers should consider how long they plan on keeping the car and their ability to pay for major repairs. An extended warranty may be a good choice for those who plan on driving the car until it needs to be towed away, or for those who want extra peace of mind. However, if drivers are not planning on keeping the car for an extended period of time, an extended warranty may not be worth the money. Ultimately, it is a personal decision that should be based on the individual’s preference for managing expenses and the amount of risk they are willing to take on.