Is buying an extended warranty for a used car worth it?
Purchasing a used vehicle warranty can be worth it if you're planning on holding onto the car for an extended period or if you want to limit their out-of-pocket expenses when repairs are needed.
That said, an extended warranty or used vehicle warranty may not be worth it if it doesn't provide the coverage, you need or if you plan on replacing the vehicle relatively soon.
At Credit Union of Southern California (CU SoCal), we make getting an auto loan easy! Call 866.287.6225 today to schedule a no-obligation consultation and learn about our mortgages, home equity lines of credit, auto loans, personal loans, checking and savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all your banking needs.
Get Started on Your healthCAR Warranty Today!
CU SoCal offers healthCAR coverage!
If you’ve recently purchase a new or pre-owned vehicle, it’s not too late to protect your investment with
healthCar from Credit Union of Southern California. healthCar can be used to cover repairs on new cars, used cars, and even high -mileage cars.
What is an extended warranty?
Extended warranties for new and used vehicles are typically offered to buyers by the dealership at the time of purchase. The purpose of an extended car warranty is generally to cover the cost of making repairs to parts not covered by the manufacturer’s warranty and can include coverage for repairs after the manufacturer’s warranty expires.
Extended warranties on used cars are offered by auto dealerships and third parties, including credit unions.
What does an extended warranty cover?
The first thing to be aware of when considering an extended warranty for a used car is that not all repairs are covered under an extended warranty. Coverage can depend on the age and mileage of the vehicle and the type of extended warranty you purchase.
Types of extended warranties
There are several types of used car warranties to choose from. These are the most common:
Bumper-to-bumper. As the name implies, this warranty
covers most parts located between a vehicle's front and rear bumpers, including the engine, transmission, drive axle, steering, air conditioning, fuel system, electrical, etc.
Powertrain warranty. This warranty covers the powertrain of a vehicle, primarily the engine, transmission, fuel pump, drive axels, transfer case and other parts that power the vehicle.
Stated-component warranty. This warranty contract outlines the specific vehicle components that
are covered by the plan. Coverage is not as comprehensive as a bumper-to-bumper warranty.
When does buying an extended warranty for a used car make sense?
There are times when buying an extended warranty for a used car may make sense, such as when:
Your car costs a lot to repair. European vehicles and luxury vehicles can cost a lot to repair. If you have a unique vehicle and know that parts are hard to come by, consider an extended warranty.
You want to pay less out of pocket. Although you pay a monthly fee to have extended warranty coverage, it can save you money when your used car needs a high price repair
You want peace of mind. Breakdowns are unpredictable and can cause havoc in our personal lives when the vehicle we rely on stops working. An extended warranty can give peace of mind that when your car breaks down, you'll have a plan to handle the repair.
You plan on holding onto the car for a long time. The older a car gets, the more likely repairs will be needed, so an extended warranty makes sense.
You're buying a high mileage car. More miles mean more likelihood of repairs. Some extended warranty companies like CU SoCal's healthCAR cover used vehicles that are 20 years old or less at the time of enrollment.
When buying an extended warranty for a used car might be a bad idea
Your car can be fixed for cheap. Some car models are extremely popular and new, used, or rebuilt parts are easy to find and relatively inexpensive.
Your budget allows for repairs. If money is not a concern and you'd rather not pay a monthly warranty premium, then skip the extended warranty.
You already have mechanical breakdown insurance. This type of insurance is available from auto insurance providers and other sources and often includes towing and other coverage.
The car is still covered under the manufacturer’s warranty. You don't need overlapping coverage, so skip the extended warranty if you have a manufacturer's warranty and the car is still relatively new.
You plan on replacing it soon. If you've purchased a used vehicle to use short-term, then an extended warranty may not be worth it.
Where to get an extended warranty for a used car?
Extended warranties on used cars are available from:
Vehicle manufacturers. When you purchase a new or used vehicle, the dealership will provide you with information on the included warranty and offer you the option to purchase an extended warranty from the manufacturer.
Third-party. Also known as an aftermarket car warranty, there are companies that specialize in providing extended warranties after a vehicle has been owned for some time. Be sure to carefully research aftermarket car warranty options before you buy coverage, as some have a better reputation than others.
Used-car dealers. You may be wondering, “should I buy an extended warranty on a used car?” Certified pre-owned vehicles come with a warranty, and you will likely be offered the option to purchase an extended warranty.
Can I purchase an extended warranty later?
An extended warranty may be purchased at any time, but the longer you wait the more you’ll pay as the vehicle’s age and mileage increase. When bus buying a used vehicle, an
extended warranty can be worth it.
CU SoCal healthCAR coverage
CU SoCal healthCAR is affordable monthly mechanical breakdown coverage from Credit Union of Southern California. Plus, Roadside Assistance included at no cost.
Any mileage. New cars. Used cars. High Mileage cars. All are eligible.
Never expires. You'll get continued coverage while enrolled in healthCAR.
Worry free. Your coverage adjusts automatically to cover your vehicle based on mileage at the time of breakdown.
Learn more about CU SoCal's healthCAR coverage!
If you’ve recently purchase a new or pre-owned vehicle it’s not too late to protect your investment with
healthCar from Credit Union of Southern California. healthCar can be used to cover repairs on new cars, used cars, and even high -mileage cars.
Why savvy consumers choose CU SoCal
For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.
Get Started on Your healthCAR Warranty Today!