How Sensible Is An Aftermarket Car Warranty For An Older Vehicle?
An aftermarket car warranty should not be an indispensable feature for your used car. There are many things to consider before you search out for a warranty to cover your older vehicle.
The BuyingAdvice team has gathered a few guidelines to help you decide if you need the aftermarket auto warranty.
Do You Need An Extended Warranty?
The first thing to avoid is paying for an extra warranty when you are already covered. The standard was once three years or 36,000 miles, but stiff competition in the auto business has made manufacturer warranties longer over the years. Many luxury lines offer four years or 50,000 miles or more. Hyundai offers a five year, 60,000 mile warranty standard, with an optional ten year, 100,000 mile “power train” warranty. If you bought the car used, and it’s still under warranty, then the warranty might have transferred to you.
Are You Eligible?
Most companies will not insure a car that has 100,000 miles or more. Most will also require you to have the car inspected by a mechanic beforehand, though some companies, like Warranty Direct do not require this.
Is It Cost Efficient?
This is the big question. The older your car is, the more you’ll have to pay for a warranty. This mostly comes from two factors. First, automotive repairs have been shown to rise with time, and secondly, as the car ages, the more likely something will go wrong.
If you can afford paying for eventual minor car repairs, you can dismiss the warranty. Bear in mind, however, that a broke air-conditioner or a serious repair can cost up to thousands of dollars. With a warranty you can have some peace of mind and not worry of unexpected expenses.
Where To Buy?
When it comes to warranties, shopping is everything. Rates can vary a lot between providers. Dealerships are typically going to offer the worst rates. In fact, you can typically expect at least a 100 percent markup if you buy from a dealer. Third party agencies like Warranty Direct cut out the middleman and usually offer a better rate.
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