If you’re looking for a used car, you might be wondering if a used car warranty is something you should consider when getting that pre-owned model. While many prove to be reliable for years, high-mileage used cars are prone to repairs and breakdowns because of aging, defects concealed at the time of purchase, improper maintenance by previous vehicle owners, and aging.
Used car warranties go a long way in creating peace of mind, especially if you’re on a tight budget. There’s comfort in knowing that you’re covered if a costly repair pops up. Below, we discuss everything you need to know about protecting your automobile through an extended used car warranty.
What Is a Used Car Warranty?
A used car warranty also referred to as an extended vehicle warranty, is a vehicle service contract that promises to pay for the cost of some auto repairs. These warranties work similarly to the Original Equipment Manufacturer’s warranty. However, most new auto limited warranties expire three and five years after an automobile’s original in-service date. After this time, most drivers have to cover damages caused by parts defects or craft faults on their own.
Extended car warranty plans come into play here. With coverage, some car components will benefit from prolonged protection against faulty parts or craft flaws. Extended warranties also come with some perks like towing benefits and roadside assistance. Combining all of these, drivers often have peace of mind on the road, despite the car’s age and mileage.
From full coverage to just the essentials, here’s a rundown of the types of used car extended warranties available:
- Bumper-to-Bumper: This is the most comprehensive and expensive level of vehicle warranty coverage that promises cover repairs for most car parts and systems in case of a mechanical breakdown.
- Stated-Component: This warranty protects car owners from repair costs for every part and the system listed in the contract.
- Powertrain: A powertrain warranty provides coverage for essential systems the vehicle needs to function, including the engine, transmission, and related components.
If you want to make sure your ride remains in tip-top shape for years to come, a bumper-to-bumper warranty would be your best bet. On the flip side, if you’re only worried about your used car’s essential systems, you might want to prioritize powertrain coverage. Extended warranties are generally offered by the manufacturer, dealership, or dealer.
How Does a Used Car Warranty Work?
An extended auto warranty works similarly to an insurance plan for your vehicle. You cover a small, up-front payment monthly. Your warranty usually goes into effect after a four-week waiting period, and it protects you from unforeseen repairs, which can be expensive and ruin your budget. Here’s how a used car service plan works when you want to file a claim:
- When your vehicle needs repair, put together your warranty documentation and get an estimated cost for the repair.
- Next, contact the warranty provider to confirm that the repair you need is covered.
- Then, take your car in for repair to an approved service center. Your warranty provider may pay your mechanic directly or reimburse you for the expense.
What Is the Average Cost of a Used Car Warranty?
The average cost of an extended car warranty is $2,800. Pricing varies depending on your car and the level of coverage you need. Most vehicle owners pay approximately $600 to $1,000 annually for extended warranty coverage. Factors contributing to an extended auto warranty cost include:
- The mileage and age of your car: The older a vehicle is, the more likely it’s to break down, making it more expensive to cover.
- The model and make of your car: The more expensive your automobile is, the more costly it is to cover parts.
- The plan you pick: An exclusionary plan that covers almost all vehicle parts will generally be pricier than a basic powertrain plan. Carefully consider the levels of coverage available to you.
- Your location: You might be given higher or lower rates depending on where you reside.
While there are other potential factors, these four main ones will ultimately determine your overall extended car warranty cost.
What Does your Used Car Warranty Cover?
Most basic used car warranties provide coverage for your transmission and engine components that require lubrication since these parts need regular service to keep your ride running smoothly. There’re different coverage tiers, too, so be sure to go over the fine print and find the warranty that’s the best fit for your particular needs. The following is an example of items covered under an extended warranty:
- Electrical components.
- Steering system.
- Drivetrain.
- Engine assembly.
- Exhaust systems.
- Transmission.
- Heating and cooling assembly.
- Alternators, manifolds, pumps.
Extended warranties aren’t meant to cover regular maintenance or body damage. Most plans and policies exclude items like:
- Routine maintenance.
- Fluid replacement.
- Brake pads/brake shoes.
- Tires.
- Spark plugs.
- Wheel balancing.
- Filters.
- Scratches, dents, paint chips.
- Body damage.
Advantages of Extended Warranties on Used Cars
A certified dealership like Rydell Outlet Center can pass all its advantages to you, so it’s better to deal with them. Under this warranty, most repairs are made by the dealership without any deductible expenses. The notable benefits of this warranty include:
- Any repair shop can do vehicle repairs so long as they are certified by the National Institute for Automotive Service Excellence, including dealerships.
- Coverage from third-party warranty providers is often less costly than manufacturer warranties.
- If you love your used vehicle and want to keep it for many years, an extended warranty will help you do that by covering maintenance costs that may otherwise encourage you to sell it.
- Plans add perks such as trip interruption coverage, roadside assistance, and rental car reimbursement.
- You get peace of mind on the road as it protects you against bank-breaking bills.
- While original equipment manufacturer’s warranties cannot be customized, extended car warranties offer the flexibility to remove or add items to create a warranty that’s a good fit for your budget and.
When purchasing a used car that you want to protect for many miles, it’s wise to consider an extended auto warranty. Rydell Outlet Center in Grand Forks, North Dakota, offers a range of extended warranties on used cars. Don’t hesitate to contact us if you have any questions. Without using high-pressure tactics, our friendly team of experts will give you unbiased, straightforward information on available warranty products and allow you to decide whether they’re a good fit for you.
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