Used Car Extended Warranties
When you’re buying a used car, it’s a good idea to consider adding an extended warranty so that you can feel more confident knowing your vehicle is covered for repairs it may need later on. While at Used Car Genius, many of our vehicles are still protected under the manufacturer’s warranty, and are of the highest quality, we want you to enjoy driving them for as many years as possible, so having an extended warranty as backup can be wise. If you’re uncertain how extended warranties differ from initial warranties, it’s simple: They cover the cost of repairs beyond the original manufacturer’s, protecting you from potentially high repair bills down the road.
How Do Extended Warranties Work?
These warranties are designed as a sort of contract stating that they will cover specially outlined repairs at no additional cost to the owner. They typically pick up where the original manufacturer’s warranty ended, so with that in mind, it’s a good idea to be sure what kinds of things will be covered as part of your plan and what things won’t. Also, if you want to take some time to think about it, you don’t need to include an extended warranty right away, but there’s definitely an advantage: if you are financing your purchase, you can roll the warranty’s costs into your car loan if you elect to add it at the point of sale.
Benefits of Extended Warranties
One of the greatest benefits of an extended warranty is that since most cars today run well beyond the initial manufacturer’s warranty, you won’t have to worry about being on the hook for unforeseen repairs when your original warranty expires. Major auto repairs can be unmanageable for many people, and so extended warranties are a sort of backup plan for when things go sour. Extended warranties can lengthen a level of coverage similar to the manufacturer’s warranty by 20,000 miles or more. On top of that, if have a long commute, an extended warranty will give you a sense of relief as your odometer ticks higher and higher.
We all know that vehicles lose value as they age. And when you’ve financed a car, especially over a longer term or with a low down-payment, it’s easy to become “upside-down” on your loan – where you owe more than the book value of the car. This is where gap insurance comes in. If your vehicle is stolen or totaled, gap insurance will cover the difference between what the vehicle is worth and the amount that you owe on the car.
To protect your finances from a situation like this, opt for gap insurance as well as an extended warranty if you plan to make less than a 20% down payment (gap insurance is required in certain contracts, such as leases). This peace of mind you’ll get from these two measures of protection will help you enjoy drive your car even more.