You found the used car that you want but, how much do you know about the used auto warranty? Let’s dive into this right away:
If you’re buying a certified used automobile with a warranty from the manufacturer, then you’re sitting comfortably. If that is not your situation, a bit of research and patience is the key in making sure you don’t get screwed.
Why, you ask? There are a number of reasons for this but after all the dust settles, the main reason is because those companies simply can’t afford it.
A large majority of used auto lots offer their own CPO warranty programs but, as you probably are aware, the coverage is about as minimal as it gets. On top of minimal, they are usually a “limited 30-day warranty.”
Another used auto warranty that is utilized a lot is the “extended service plans.” These extend the limited coverage to most of the mechanical aspects of the automobile, with the exception of wear-and-tear, wheels, and glass. The particular lot should have a website that will list the complete details of coverage. These items and the costs will vary by coverage and the make of the automobile.
The best course of action is to do your research of the specific company you’re buying the automobile from. You want to look for length of time they have been in business. The longer, the better.
A few tips when shopping for a used auto warranty:
- Do not believe the “This weekend only” or “I can only do this deal today” talk from the dealer. They have much flexibility and that tactic is strictly to play your emotions. Call them on it.
- Be sure the warranty pays directly for repairs to the automobile and not a reimbursement situation.
- Refund policy must be in writing and keep this in a safe place. If you ever sell the car, a refund should be made out to you for the unused portion.
Buying a car is stressful enough, but going into the situation without a prior understanding of the used auto warranty processes will add to the stress level. With this information and some research, you will be armed to make an informed decision before you sign on the dotted line. Good luck!Continue reading →