Should I Buy an Extended Warranty For My Used Vehicle?

Buying a Used Vehicle and wondering if you should buy  a warranty?

Consider the Cost ...


There are  many service contracts to choose from  and they can be  expensive. That doesn’t  mean they are all  rip offs , but you should  consider the likelihood of needing repairs, what those repairs may cost, and then see   if it makes sense.

There are a number of  factors to consider .... What is actually  covered,  How much is the  deductible, What is the length of contract.

Prices can  range from just a few  hundred dollars to a few  thousand dollars.

You’re   placing a bet  on if  you think your repair costs over the length of the contract will be more than you paid for the contract itself. If you paid $1000 for coverage that will last you about two years, you have to ask yourself if there is a good chance that over the course of those two years you’ll need to have $1000 or more worth of work done. If it isn’t very likely, you might as well save your money. But if you think that it  is a possibility, it might make sense.


Some of the Benefits

Many  offer a free loaner car when you have to take  your vehicle in for service. That can be  helpful if you’re in a situation where you need a car or don’t have many options for sharing a ride. Some pay for the cost of a rental car .  If you’re vehicle will be  in the shop for a few days, this can be a nice benefit to have. Some contracts also provide free towing service in the event you break down.
Some people are opting for a  “vehicle fund” to work as their  own extended warranty.

If you  put  money a side   in a  savings account   and sort of earmark that for unexpected vehicle repairs, your money can actually earn a little interest on it and  it  will be  readily available  if you need it.  You may  miss out on a few  of the added benefits of buying coverage, you’re in better shape if you’re fortunate enough to have a car that  only needs minor  repair or better yet ....doesn’t need any!

It’s like buying insurance. You never know if you will  need it, and if you don’t use it,  you  may feel like you  wasted  your money. But if you do need it, you are  sure glad you have it.