Whether you bought your car new off the lot or used, it’s likely that the manufacturer warranty will eventually expire. Some people worry about car repairs and if the vehicle will break down, so they opt for a used car extended warranty to ease those worries. However, before you make the decision to buy an extended warranty on your used car, it’s important that you understand the pros and cons of these policies.

A warranty is a contract between you and the provider that guarantees to cover some or all repair costs for your used vehicle. The terms of the contract vary, but most warranties cover a certain amount of time and miles, with some covering specific parts such as the transmission or the battery. Many providers will also offer extra benefits such as roadside assistance or rental car coverage. Some will require you to pay upfront for repairs and then submit receipts to receive reimbursement, while others will cover the cost directly at the repair shop.

There are two situations when an extended warranty on your used car may be worth the investment. One is if you know that your used car’s model is not reliable and has a history of breaking down. You can learn more about a car’s reliability by researching the make and model online or by talking to other owners and mechanics who have driven it.

The other situation is if you’re going to be financing your purchase and you don’t have the cash on hand for any unexpected car expenses. In this case, an extended warranty can help alleviate some of your financial stress by allowing you to roll the cost of the plan into your loan payment.

A used extended warranty can be a great way to help you save money in the long run and reduce your risk of being hit with expensive unexpected repairs. It’s important to research the various companies that offer these plans so that you can find the best one for your needs and budget. You should also consider if the plan is transferable to a new owner and if there are mileage restrictions to keep in mind.

If you are unsure if an extended warranty on your used car is right for you, speak to a trusted advisor at CARCHEX. We can answer any questions you have about these policies and help you find the plan that’s right for your budget and driving habits. To get started, give us a call at or visit our website. We look forward to speaking with you! extended warranty on used car