A used car warranty comes with benefits for both parties involved in buying and selling a vehicle. For the seller, the car fetches a higher price in addition to easing the process of finding a buyer. On the other hand, the buyer gets assurance that the money spent in the purchase will not go to waste. This means that the warranty ensures that in the unfortunate but often inevitable situation in which the car develops mechanical problems, it will be repaired and continue its service without extra expenses to the new owner.
Before buying a used car warranty, however, it is important to know the different types of warranties in the market in order to make an informed decision on the best fit cover for your needs.
A standard warranty is based on the distance covered or the time the owner uses the vehicle. For example, it can be 20,000km or one year—whichever comes first. If you are not much of a traveler, this type of warranty is probably your best bet. It is also suitable for people who plan to trade in the vehicle after a short time. Some of the aspects covered by the standard warranty include mechanical problems and issues to do with the safety of the car.
Even the vehicles that seem to be in a superb condition may fail sometime. Extended warranties are designed to cover expensive repairs and replacements that are likely to be needed long after the purchase of the used vehicles. Therefore, they cover a longer period – sometimes up to five years. They are most suitable for high performance vehicles and buyers who don’t plan to trade in or sell their cars in the near future.
One of the greatest advantages of extended warranties is the fact that while the payment for them is fixed, the cost of repairs and maintenance vary. In other words, you know exactly what it will cost you to keep your vehicle in good condition no matter the complexity of the problem as opposed to worrying about the money you will spend on the next visit to the mechanic.
When buying a used car from a dealership, you expect that the quality standards have been observed. This means that the vehicle is in reasonably good condition to serve you. This is where implied warranty comes in. Under implied warranty is merchantability, which simply means that the purchased car fulfills the functions it was intended for. For instance, you bought the car in order to drive it. If doesn’t move, then the seller have gone against the conditions outlaid in the implied warranty. There is a drawback, however, in the fact that you will not be covered by the warranty if the vehicle develops problems long after buying it.
The kind of used car warranty you get will determine how long you will be covered and how much you will have to pay for it. Keep in mind that not all warranties may be favorable to you. In fact, you may purchase a warranty that will be of no use to you. Nevertheless, used car warranties have often come to the rescue of car owners. You only need to make a careful choice of the available warranties in order to ensure that it will indeed benefit you.