Many consumers will feel more comfortable buying a used car if it comes with a warranty that will cover repair needs for a certain period of time after a purchase.
Buying a used car is a smart decision because new vehicles lose a great deal of value immediately after a purchase. At the same time, a used car is more likely to have mechanical problems than a new car.
Purchasing a warranty can help alleviate some of the concern that a used car will experience severe mechanical issues soon after purchase. The following factors should be considered in deciding on the appropriate warranty for a used car purchase:
The condition of the vehicle
No matter how much you look over a used vehicle that you're interested in purchasing, it's impossible to know with certainty that the vehicle is 100 percent mechanically sound. You simply must do your best to discover any possible mechanical issues or weaknesses. It's a good idea to get an opinion from an outside mechanic on the condition of the vehicle in question.
Warranties are purchased on the premise that mechanical problems will inevitably occur at some point. Even new cars come with warranties, so you probably want to consider buying a warranty even if the vehicle you're purchasing is in mint condition.
You can factor the car's condition into decisions you make about different warranty options. Common warranty options include basic-used, extended-length, and certified pre-owned warranty.
- Basic-used This is the most basic type of warranty that will cover only a very small percentage of repairs. This type of warranty might be the most practical option if the vehicle is in very good condition.
- Extended-length Extended-length warranties will offer more coverage and will certainly be worthwhile later if your vehicle experiences major mechanical issues.
- Certified pre-owned This type of warranty typically offers coverage for only a very short length of time after the purchase. Therefore, it's best to rely on a certified pre-owned warranty only if a vehicle is in good condition.
When considering warranty length, you should think about how long you'd like to keep the used vehicle that you're purchasing. Longer warranties are usually more expensive. On the other hand, a shorter warranty will often come included with a used car without any additional purchase.
Doing your research
The most important thing to keep in mind when deciding on a used car warranty is to do your own research on the subject. You shouldn't let the dealership talk you into purchasing a warranty without careful consideration. Use the Internet to do research and consult with your mechanic if you're uncertain of which warranty is best. Remember to talk to several car dealers before deciding.