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Guide to Buying a Used Car Warranty

When buying a used car warranty, it is very important to choose a reliable warranty provider and learn more about the car warranty coverage. 

Planning to buy a used or pre-owned car? It can be a daunting task to choose the right car and also select a good car warranty plan. Here are a few useful tips that can be some help to you:
In the world of used-cars, the safest bet is to get a certified pre-owned car with a warranty provided by the manufacturer. But if you have to buy a used car warranty, you need to ensure that the company providing the warranty is reliable.

It is best to choose a company that has been into business for many years. However, it helps to shortlist few car warranty companies, compare their rates and then make a final decision.

Don’t make the mistake of buying a plan based on a sales pitch on the phone. It is better to visit their office and talk face-to-face before making a final choice.

It is very important to have a contract in hand. Read everything carefully and review all the details before you make a decision. Also, the ‘today only’ price pitches are not to be taken seriously. Always avoid falling under such traps.

Every used car warranty plan will have an insurer or underwriter. Find out who that is and check details about it on the internet. It is important to know your deductibles when buying a used car warranty plan. This deductible is only charged once per repair visit.

It is not recommended to buy a warranty plan that is based on the performance of a product. Always buy from a warranty provider that will be paying directly for the repairs, when needed. Don’t opt for a company that says it will reimburse you later.

This type of warranty is often transferable which means, when you buy a vehicle with an extended vehicle warranty, you can transfer the remaining car warranty coverage by paying a certain transfer fee. This fee varies by state.

You should get the refund policy in writing and in case the warranty is not transferred to somebody else and you sell the car, you will be entitled to a refund for the warranty’s unused portion.

Tips to Consider Before Buying a Warranty Plan

Here are some of the questions you need to ask yourself before spending money on an extended warranty plan:

  • First question you need to ask is- do you plan on keeping the new or used vehicle for a long time? This is one of the most common questions buyers are asked and therefore, it is worth your consideration as well. If you are one of those people who get tired by a car in less than three years, then paying money for an extended warranty doesn’t make sense.

  • As mentioned-aboveArticle Search, you need to know who stands behind the warranty because there are many dealerships that offer third party warranties from companies that have varying track records. Make sure that the warranty you choose is backed by the automaker and not just the dealership.

Article Tags: Warranty Plan

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Harry works for a car company. He also writes articles on how to choose the right used car warranty plan and importance of car warranty coverage. 

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