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cost of warranty on used car

5 Extended warranties at a bargain price – Cost of warranty on used car

You found your desired car from the secondary market in a 10/10 condition. It is almost new-like in appearance and doesn’t even require a mechanic checkup. But what’s holding you back from purchasing this beast? We guess it’s its expired factory insurance that is bothering you.

Maybe you are feeling this way because you are uncertain about the cost of warranty on used car or because you don’t know who provides the best-extended warranty on the market. If these are your concerns, you, fortunately, have come to the right place. In this guide, we are about to discuss how much extended warranty costs for a used car and which service providers are best in catering to used cars.

Used car warranty explained

Before we determine the cost of warranty on used car, let’s first learn about a used car warranty, what it is and what it includes. When you buy a pre-owned car with an expired factory warranty, that’s when a used car warrant comes into play. Since you cannot just leave your used car without any coverage plan, several third-party service providers offer extended warranties for such cars. These warranties cover your used car’s hefty wear and tear so that you don’t have to spend thousands of dollars on them.

That said, used car warranties have their own terms and conditions. They provide fixing and replacement for certain parts of your car until it reaches a certain mileage. Also, the items covered in an extended warranty coverage plan depend on the level of protection the car currently has and the type of plan you purchase.

Types of Used Car Warranties

Several types of warranties come for used cars to cater to the driver’s specific needs. Here are some different types of warranty plans that most independent providers offer:

  • Bumper-to-Bumper: It is an exclusionary warranty that covers a broad range of components and some that are not subject to normal deterioration such as an air conditioning system.
  • Powertrain Warranty: It covers the essential components of a car including, the engine, drive shafts, transmission and axles.
  • Stated-component Warranty: It is a type of warranty contract that lists each and every component covered in the plan.
  • Drivetrain Warranty: It is similar to a powertrain warranty and covers everything that a powertrain warranty covers except for the engine.
  • Wrap Warranty: It is an add-on warranty that broadens powertrain coverage to the rest of the car.
  • Anti-perforation Warranty: This plan covers fixes and replaces body panels due to corrosion or rust from the inside out.

An extended warranty provides more flexibility in terms of both time and money. You can get one whenever you feel like you need it. On the contrary, new vehicle owners usually get an extended warranty from their car manufacturers while purchasing the vehicle or when their factory warranty is about to expire. If that window closes, you cannot get an extended warranty from the manufacturer. Third-party companies offer extended warranties for your vehicle protection when car manufacturers don’t.

Checklist when buying a used car warranty

If it’s your first time getting a used car warranty, here is a guideline to get the perfect deal. This checklist will help you make the most of your used car warranty.

  • Determine your budget: While deciding on an extended warranty for your used car, you should know how much you can set aside per month for your monthly payments. This will also help you narrow down your options for service providers.
  • Determine common repair costs: Research the repair costs of your vehicle for instance, figure out how much will it cost to get a drivetrain fixed and whether it needs to be replaced in the future.
  • Get a copy of your car’s factory warranty: This will help you determine when you need an extended warranty and how much mileage is left on your current factory warranty.
  • Look for a warranty plan for your car: Next, you need to search for recommended plans for your car model to get the best deal for your used car.
  • Determine if there’s any deductible: While deciding on the extended warranty plans, you must also figure out if there is any deductible for it and how much it costs.
  • Inquire if costly repairs are included: You must check if the company you are considering covers costly repairs, too, to avoid a lengthy bill for reimbursement and claim denial.
  • Check which facilities are covered by the provider: You must check which repair facilities are covered by your service provider. For instance, Carchex offers 30,000 repair facilities US-wide – ideal for an extended service provider.
  • Verify if the warranty is transferable: So, this is extremely important that your warranty is transferable. Like, what if you want to sell your car, will the company transfer the warranty to the new owner?
  • Learn about the refund policy: Before purchasing any warranty plan, make sure their purchases are refundable to get your money back in case you are not satisfied with their service.
  • Check their reviews: The best method to identify if the company lives up to its work is by checking their reviews. Also, ensure that the company is not involved in deceptive practices.

So these are some guidelines you must follow while deciding on a third-party warranty provider. If it successfully ticks all the boxes, get it for sure!

Warranty costs for used cars

The price and the level of coverage in an extended warranty of a used car depend on several factors, including, your car’s condition, model and the plan you choose. Typically, the warranty cost for used cars lies somewhere between $1000 to $1,500 and even more for luxury cars. However, since every provider has different prices and policies, here are some factors that will help you determine the price:

  • Mileage/Age: Most time, cars with greater mileage have expensive coverage. But that’s not always the case. It also depends on the vehicle’s condition and the service provider. Several companies offer decent plans for older vehicles.
  • Vehicle model & brand: A Mercedes will likely have a costlier warranty than a Hyundai. This means the higher the car’s price, the pricier the coverage.
  • Deductible Amount: Like insurance, a higher deductible will have a lower extended warranty cost and vice versa.

Best Used car Warranties in 2022

Used car drivers can get extended warranties for their pre-purchased cars for major mechanical repairs such as the engine and transmission. To help you further, below are some best recommendations for used car warranties.

  • Carchex

Whether it’s a used car or a new car with an expired factory warranty, Catchex serves as the best warranty provider covering almost all major components in their plans. You will be surprised to learn that the company covers 10 years old vehicles with up to 250,000 miles on them. For used cars, we would recommend to go for their Gold plan as it covers high mileage vehicles and includes normal wear and tear.

  • Toco Warranty

Toco Warranty is made for used cars. It has dedicated plans for preowned cars and categorized them as; Blue, Yellow and Orange plan. Now let’s take a look at what each of them offers. According to their website, the Blue plan covers car models dating back to the 2000s with approx 175,000 mileage on them and covers basic powertrain. The Yellow plan is for vehicles that are 2011 or newer with 100,000 mileages on them. Lastly, the Orange plan covers 5 years old vehicles with less than 60,000 mileages.

  • Autopom

Autopom is another promising used car warranty provider and has received an ‘A+’ rating from none other than the Better Business Bureau. It has a wide range of plans for varied car drivers and covers cars with 150,000 mileages.

  • Omega Autocare

Omega Autocare offers comprehensive plans for used cars. It has two ideal plans for pre-owned cars; The Used States Coverage and The Powertrain Protection plans. The first one offers component system protection for vehicles 10 years old with less than 150,000 mileages on them. The latter offers basic powertrain coverage for vehicles with less than 250,000 mileage and 15 years older.

  • CarShield

If you ever consider Carshield, go for their Platinum Plan, especially if you have a preowned car. This plan covers high mileage vehicles and their components, such as fuel pump, fuel injector and suspension, apart from basic mechanical coverage. Isn’t it a STEAL? It is definitely worth it!

Take Home Message

Extended/used car warranties have made it easier for buyers to get their hands on pre-owned car. Now, they don’t have to worry about their expired factory warranty since they already have too many affordable alternatives. Get your desired pre-owned cars and choose the best protection plan from our suggested companies. You will thank us later!

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