Your ride might not be new, but it is to you. That’s the beauty of a used car. Though nothing can beat the smell of a new car, the savings a used one offers are way more tempting. Visiting a used car dealership would be ideal if you are on a budget.

Before you sign on the dotted line, there’s one more expense you need to add to the total: Used car warranty.

Let’s face it: The first scratch on a new car is heartbreaking. With a used car, you may still want to keep it in good condition but are not that worried about minor wear and tear. As a result, you are a little lax in protecting your car.

This is one of the biggest mistakes that many used car buyers make. An investment is an investment, whether you spend $50,000 on a new car or $10,000 on a used one. Having coverage allows you to get certain repairs done for a specific period without paying a penny.

Let’s take a look at the types of warranties available for used cars:

Types of Used Car Warranties

Manufacturer’s Warranty

Some used cars still have their original manufacturer’s warranty. This coverage usually lasts for a couple of years or miles, whichever comes first, from the car’s initial purchase date. It often includes powertrain coverage and sometimes bumper-to-bumper coverage.

• Powertrain Coverage

Powertrain coverage is a warranty focusing on a car’s core mechanical components. These components are vital for the car’s functionality and are often the most expensive to repair or replace. Here are the parts powertrain coverage include:

• Engine: Repairs for internal components, such as the engine block and cylinder heads
• Transmission: Repairs for the gearbox and clutch.
• Drivetrain: Repairs for the differential, axles, and driveshafts that transfer power to the wheels.
• Bumper-to-Bumper Coverage

This coverage provides comprehensive protection. Some people assume that the term suggests complete coverage from the front to the rear bumper. However, not all components are included in the warranty. The policy usually mentions the major systems you can seek repairs for and those excluded from it.

Certified Pre-Owned (CPO) Warranty

A certified pre-owned warranty is usually for used cars.

Cars sold under the CPO program often have a mileage limit, which is why they are sold for a low price. A comprehensive mechanical inspection is conducted to check the engine, suspension, transmission, brakes, and other critical components for any issues.

If the car meets the CPO criteria, the warranty offered extends beyond the manufacturer’s warranty, giving you peace of mind that if something goes wrong, you are covered.

Another advantage of a CPO warranty is that it is transferable to the next owner. This enhances the car’s resale value if you decide to sell it before the warranty expires.

Third-Party Extended Warranty

A third party in business with the used car dealer provides an extended warranty. It has various coverage levels and terms, allowing you to customize the warranty.

Repairs and replacements included in this warranty depend on the car you buy. Some offer periodic maintenance and bumper-to-bumper protection; others include specific vehicle systems, excluding costly components.

Collision Coverage

This coverage is optional and usually an add-on.

Collision insurance protects your car from damage in an accident, regardless of who is at fault. Unlike liability insurance, which covers damages to others, collision insurance covers the cost of repairing your own car.

Most people opt out of collision coverage because they don’t want to pay a high premium for a used car. However, if you use your car daily for work and running personal errands, you should consider purchasing it.

Factors Affecting Used Car Warranty

The total cost of your used car warranty depends on several factors. Let’s take a look at them:

• Car Model Year:In some cases, a used car’s model increases the warranty’s cost. This is because older cars are prone to breakdowns.
• Car Mileage:The more the car has been driven, the costlier its warranty will be. The plus point is that its selling price will be low.
• Car Make:Sports cars and luxury vehicles require expensive repairs. Moreover, the cost of maintaining such cars is also high, which increases the coverage cost.
• Deductible:The higher the deductible, the lower the warranty’s cost.
• Coverage Level:Powertrain coverage is cheaper than exclusionary coverage, which protects almost all of your car.

How to Choose a Warranty

• Set a Budget:Before delving into the details of different warranty options, it’s important to set a budget. Consider how much you are willing to spend on a warranty, keeping in mind that the cost of coverage will vary depending on factors such as the age, make, and model of your used car.
• Explore Different Options:Once you have decided on the type of warranty you want, research warranty providers. If your used car dealer is not offering you a good deal, consult online resources and ask for recommendations from family members or friends.
• Decide Warranty Duration:Consider how long you plan to keep the used car. Warranties typically have a duration and mileage limit. Ensure your chosen warranty aligns with your expected ownership period and driving habits.
• Negotiate:Don’t hesitate to negotiate the warranty terms with the provider. Some parts, such as the cost and deductible, may be negotiable.
• Read the Fine Print: Thoroughlyread and understand the contract before committing to a warranty. Pay close attention to any terms and conditions, hidden fees, and cancellation policies. If you have any questions or concerns, please feel free to ask.

Final Word

A CPO warranty is the clear winner among the warranties mentioned above. Since the car is thoroughly checked before being put up for sale, you can be assured that there are no faults in the car’s core components.

Consider adding collision coverage to your car insurance policy so you don’t have to worry about bearing repair costs after an accident.

Accurate Automotive Sales offers the best car prices. The used car dealer has a huge inventory that includes new and old car models. You are likely to find one according to your preference and under your budget. Visit their website to browse vehicles. For more information, call (401) 365-1019.  Happy car hunting!