The process of buying a used car can be quite gruesome, when confronting the used car warranty cost. You need to take the time to cover all your bases to ensure that the savings you make by buying used instead of new remain intact.

One of the trickiest decisions when it comes to buying a used car revolves around used car warranties. The decision to buy or pass up on a used car warranty mostly depends on your appetite for risk, making it far from being straightforward. To some, this warranty is simply a must, while to others, it is nothing but confusing.


Used car warranties may be referred to as service warranties or extended car warranties. These may be provided by manufacturers or third parties and are mainly sold through dealers.  To ensure that you make an informed decision at the end of it all, it’s important to familiarize yourself with the advantages and disadvantages of used car warranties to begin with.

The Pros of A Used Car Warranty

First and foremost, these car warranties offer used car buyers some much needed peace of mind. With a used car warranty in place, used car owners can rest assured that any major breakdowns will be fixed at a minimum or no cost to them.

Secondly, since these warranties are offered through dealers, they can be conveniently factored into the vehicle’s purchase price. The dealer handles all the paperwork, and conveniently includes the cost of the warranty in the periodic car payments, if any.

Lastly, these extended car warranties can be customized to meet the car owner’s specific requirements. This saves car owners from having to pay for more cover than they need.

The Cons of A Used Car Warranty

One of the most prominent disadvantages of used car warranties is that they may never be needed. Modern cars are designed to last longer, some for as long as 10 years, without the need for major repairs. As such, used car buyers may end up overpaying for cover that they won’t use.

Add to the above the fact that most of these warranties offer a highly limited scope of cover, and you might not be so attracted to them. The list of excluded repairs is quite long, meaning that you might end up paying for most repairs from your own pocket, even with the warranty in place.

Finally, used car warranties add to the total cost of the car; if your car is financed, you can include the interest on the warranty as well. This effectively eats into the savings initially made on buying a used car.

Judging from the above pros and cons of used car warranties, it’s difficult for you to decide whether it’s a good idea to get it or pass up on it. Keeping the factors listed below in mind before making a final decision.

Think About Your Needs

Take the time to find out whether you really need the warranty cover by first considering your needs. If there’s time remaining on the factory warranty, it might be better to wait until it expires before purchasing an extended warranty.

If the factory warranty is expired, you can save a lot of money by getting a customized warranty that only covers what you think is necessary, instead of splurging on a comprehensive one, bumper to bumper warranty, which will cost more than any repairs you are likely to encounter.

Do Your Research

Before opting in or out of an extended warranty agreement, for your used car, conduct some research on its reliability. Some automotive brands are known to offer relatively shorter factory warranties due to the reliability of their cars. If you are buying a vehicle that is considered to be well built and not prone to breakdowns, especially major ones, then a warranty might not be necessary. On the other hand, if you are buying a car that is known to be prone to breakdowns, a used car warranty will be quite useful.

With the above in mind, it’s essential that you research the specific car’s repair history to get a clear idea on whether you need to buy any cover. The decision on whether or not to buy a used car warranty is quite confusing to say the least. However, with the right preparation, you can be able to make an informed decision on whether it’s a good idea for you or not.

Is Buying A Used Car Warranty A Good Idea?
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Travis Otto
Travis Otto
Travis Otto established Otto Care after firsthand experience with the nation’s leading roadside company. He realized that roadside assistance and towing isn’t all that great. Your tire is still flat, your car is still totaled, and your insurance deductible isn’t going to pay itself. So he set forth to esablish the nation’s fastest growing vehicle protection company.