Should You Buy an Extended Warranty on a Used Car? (2024)

For many, a car is the second most costly thing after the house. Thus, we may worry a lot about the value of the investment we make. A lot of customers are now finding tremendous value potential in the used car market.

The used car market has many options to offer. This is possible because of frequent launches and updates. Additionally, multiple financing options have made buying easier than ever. However, some might still be afraid to buy a used car. This is because of the myths revolving around buying used cars.

Some believe used cars are prone to frequent breakdowns. Meanwhile, others think used cars lack reliability. But these myths are not completely true. Modern cars are built to give better performance and reliability. They tend to have longer life spans than older cars. Therefore, it makes sense to buy used cars. Buying these preowned cars offers multiple benefits that might shock you.

This article discusses a lot about these used cars. You will understand why you should consider pre-owned cars. You will also explore how to choose the best used car. Ultimately, you will uncover reasons to consider an extended warranty. In short, you will get an answer to your question, “Why should I buy extended warranty on used car?”.

So, let us begin exploring:

Why should you consider a used car over a new one?

Are used cars reliable? The answer depends on the dealership you choose. Generally, dealerships check and fix every part of the car. Before putting it on sale, they will ensure the cars meet standards. Additionally, they will also provide warranties. This will ensure you will not run into post-sale trouble. However, you have to find a trustworthy dealer. Let us explore more reasons to consider used cars:

1.Affordable

Used cars can save significantly. The new ones cost a lot and will depreciate quickly. You will pay a lot less than the price of the new one. However, the cost of the used car depends on factors like mileage and others. Modern cars are built to ensure reliability. So, do not worry about the quality of the used car.

2.Lower depreciation

Depreciation is the main reason why pre-owned cars cost less. Let us understand what depreciation is.

It is the reduction in the value of the car. The depreciation rate depends on many factors. However, the main cause of the value reduction is the wear and tear.

Mileage will significantly influence the value of the car. High mileage will lead to a high depreciation rate. A new car loses its value drastically as it leaves the showroom. This means buying a new one comes with a downside of significant loss.

3.Lower insurance premiums

The Insured Declared Value of a car reduces as your car ages. This means the new car will have high insurance costs. Meanwhile, older cars will have less insurance premiums. If a vehicle is perceived as high value, its insurance will also be high. However, once it starts clocking the miles, its value will decrease. This is because of factors like mileage and car usage. Overall, this will reduce the insurance cost.

4.They are warranted

Purchasing from a dealership with a good reputation is crucial. This is because you will get many benefits such as reliable service. Additionally, the used car will also come with warranties. This warranty will give you a sense of security. If you bought a nearly new car, the warranty will be similar to that of a new counterpart. You can get all these benefits by purchasing a used car.

5.Assures reliability

You will get the car history report when you buy a used car. Thus, you will have access to information like previous owner and mileage validation. Additionally, you will have data related to registration status and many more. With this report, you will get information about the car. As a result, you can make the right decision. Overall, it will make your purchasing journey seamless.

6.Offers good variety within your budget

Many models are launched every year. Meanwhile, few will undergo facelifts. As a result, you will have access to various options. You will find a car for whatever specs you want. The used car market has a lot to offer. Even the new car market has fewer options than the used car market.

7.Low registration fees

You can eliminate substantial registration fees. Thus, you will save money by buying a used car. Additionally, these preowned cars also come with discounts. Second-hand cars are also not subjected to any tax. Overall, buying used cars saves a lot in registration.

8.Great quality cars

Thanks to technology, the cars that are used can be reviewed as new ones. The dealers will ensure the car looks as good as a new one. Additionally, they will take care of every detail to ensure the car's durability. They will also make necessary changes to meet the manufacturer's standards. Ultimately, these steps will ensure high customer satisfaction.

As we saw above, these are the benefits of buying a used car. So, consider these factors if you plan to get a new one. With this consideration, you can make a better decision.

What to check before buying a used car

Some consider used cars because they want to improve their driving skill before buying a new one. Meanwhile, others consider preowned cars because of the budget constraint. Whatever may be the reason, it serves its purpose. Plus, it is also dear to its owner. However, buying an unreliable or faulty car can be frustrating.

How can I ensure the chosen car is reliable? Let us know how:

Here are the things that you need to check:

1.Condition of the car

After short-listing cars, you have to check every minor detail carefully. After that, you have to proceed with purchasing. If you understand the technical aspects, you can check the cars yourself. Oe self, it is advised to get help from a mechanic. Many times, things look normal from the outside. A skilled mechanic can determine any cover-ups.

Here are the things you need to check thoroughly:

• Interior: Check every corner of the upholstery. Look if the front or back seats have any cuts. Plus, make sure the seats are free from strains. You also need to look at the electronics. You have to check items like the monitor and music system by performing every functionality.

• Exterior:You have to cover every angle of the exterior. The exterior panel might look fine, but close inspections will reveal its true form. You have to check if the panels have rust or dents. Panel gaps can help identify if the vehicle has been in an accident.

• Framing:Taking a closer look at the car is crucial. Meanwhile, stepping back and looking at the car's framing will reveal much about the vehicle. Check if the car looks proportionate thought. Additionally, look for any panel that is loosely fitted.

• Tyres:Tyres can say a lot about the vehicle. You have to check if the tyre has uniform wear and tear. Uneven wear tells us that there is an alignment issue. This means the vehicle can be dangerous around the turn. It can also drift in the direction of the overload.

• Engine:The main task is to check the engine thoroughly. Look if the engine has any leaks or corrosion. Apart from these, look at the transmission fluid using a dipstick. You have to check every part of the engine to avoid any future headaches.

2.Maintenance record

Some car owner maintains files of service records. They will keep every receipt and note their dates. Meanwhile, some might not consider record keeping. They will just have in their mind about the visits to the service centre.

While buying a used car, you have to talk with the seller regarding the maintenance records. If they have these documents, it is great. You can continue servicing based on these reports. If the car does not have a maintenance file, you need to get the history through the service centre.

3.Check registration certificate

You need to verify the authenticity of the registration certificate. This document will have the data related to the previous owner. Additionally, it will also have information about the car, like engine number and chassis number. Ensure the document is original. If the document is a duplicate, talk to the seller.

Apart from this, purchase invoices and insurance are the other crucial documents you have to check. If you have no idea about these documents, talk with an auto expert. They will help you.

4.Car insurance

When you buy a used car, its insurance should be transferred. It is the responsibility of the dealer. Not transferring to the new owner’s name may lead to legal issues. Additionally, you have to check the extent of the insurance. If you think, “Why should I buy extended warranty on used car?” keep reading, and you will know.

5.Take a test drive

A test drive will let you understand a lot about the car's performance. You can access the drivability and comfort. You should check the stability while taking U-turns and driving through speed breakers. You have to give special attention to the breaks and gear shifts. Ensure the breaks are working properly.

Additionally, the gear shifts should be smooth. Apart from these, acceleration and suspension should also be considered. Overall, check every driving aspect.

Uncovering the top reasons to consider an extended warranty

Used car buyers prioritize reliability over other aspects. But for many, this factor is not enough. They want to have financial protection.

Should I buy extended warranty on used car? Extended warranty is the main requirement for buying used cars nowadays. Usually, these warranties are included with the preowned cars the dealership sells. No matter the type, these warranties can provide peace of mind. They also limit your financial risk for some time.

However, it is crucial to understand the terms before purchasing these warranties. You have to know what exactly you can expect in case of a breakdown. A survey has shown that the used car owners have paid more than the direct benefits of the warranty. Thus, you have to be extra careful while buying these warranties.

Here are the benefits of an extended warranty:

1.Peace of mind

Even the new cars can have underlying issues. Thus, you cannot ensure that your used car will not get any problems over time. As your car gets older, it starts to wear and tear. It will lead to potential issues with major components. Ultimately, it may cause a breakdown. Repairs for these problems may cost hundreds if not thousands. Thus, imagining these problems is terrifying. However, you can ensure your peace of mind with an extended warranty. So, invest in an extended warranty to drive these concerns away.

2.Financial protection

These warranties provide financial protection. This is the main reason many used car owners prefer them. These warranties will state all the components covered. Thus, you have to understand these documents thoroughly. You should also be aware of any exclusions. Knowing what coverage level you can get from these warranties is good. Major warranties cover a wide range of the crucial component of the used car.

3.Convenience of visiting multiple certified repair shops

The warranty provider will give you a list of authorized repair shops for major repairs. You can use your extended warranty plan in these centres to get your car repaired. Each of these shops will have skilled mechanics. Plus, they are also qualified to work on various models. These experts will ensure the issue is fixed without damaging other components. As a result, you can ensure a quality and reliable service.

4.Coverage for labour and parts

This extended warranty will cover the repair. Meanwhile, some may also cover the labour and parts charges as well. With these plans, you will not encounter any unexpected costs. Your warranty provider will take care of every aspect. Sometimes, you may have to pay the upfront fees that your contractor will pay you later. Thus, understanding the guidelines before purchasing the warranty is crucial.

5.Protection against depreciation

You can reduce the depreciation by properly maintaining your car. Proper maintenance will keep your car in good condition. Plus, it will also prevent breakdowns. You can save on maintenance with an extended warranty. Plus, your car will have a higher value over the years. Some extended warranty will allow you to transfer the coverage. It will enable you to increase the price of your car if you plan to sell it.

These are reasons to invest in an extended warranty. These warranties will benefit you significantly over time. A good warranty with maintenance will help in maximizing your financial protection.

We hope you got the answer to "Why should I buy extended warranty on used car?".

To conclude - New vs Used Car

If you plan to buy a car, do not overlook used cars. These preowned cars will be as good as the new ones. Plus, they cost less and lower your insurance. You also have a chance of finding a better one than a brand-new car.

Meanwhile, the extended warranty will protect you financially. Knowing the breakdown and problem is covered with a warranty will give you peace of mind.

So, look for a reliable and trustworthy dealer and explore their collection.