Used car dealerships typically provide options for an extended warranty on most of the vehicles they sell. Are these warranties worth it? Absolutely--especially if the buyer can get a great deal on the warranty cost.
Warranties Can Be Very Useful
Warranties are very useful for used cars that may be a little bit unreliable or which are a little older. The older a vehicle is, the more the warranty is likely to cost. However, that also means that the vehicle is more likely to malfunction in a way that requires the warranty to go into action.
Make sure that the warranty is not an inclusion warranty, however, as this limits its usefulness. These warranty types only cover specific parts on the vehicle. Find one that is comprehensive and which will cover the cost of most repairs, which can be thousands of dollars.
Coverage Is Usually Less Than The Cost Of Vehicle Repairs
Warranty prices typically vary depending on the vehicle purchased and the dealership. One estimate states that an average price for an extended warranty is about $1,800. That warranty price can be broken up into monthly payments over the lifetime of the vehicle. So if a vehicle is purchased on a five-year lease and the $1,800 is broken up into monthly payments along that lease, that's only an extra $30 every month.
Consider the fact that most extended warranties will offer a car owner three to four years of coverage, and that is a very small investment. If the transmission or any other major piece of hardware goes out during this period, that $1,800 will more than cover the repair costs. But is it possible to talk to a dealer in a used car lot an even better deal? Yes, and here is how.
Negotiation Tips On Extended Warranties
The best way to save on a used car warranty is to know how to negotiate on it. Most used car dealers are going to expect that you will try to negotiate with them. They are ready for it and many even look forward to the excitement. The best way to get them to bring down the price on the warranty is to act somewhat disinterested in it or to act as if you want to go to a different warranty company.
Remember that other companies are available to warranty your car. While your dealership will always suggest a company to use, it isn't necessary to go with them. As a result, it is possible to suggest other insurers in a bid to get the dealer to lower their price. Typically, they are willing to budge a little here because they are more interested in making the sale than saving a little on a warranty cost.
By following these tips, it is possible to go to a used car dealership and get a great warranty. Remember that most dealerships are typically happy to work with you as a way of ensuring you get the car you want and that they make a good sale. In this way, it's a win-win for everybody.Share