Is it Worth Getting Extended Warranty on a Used Car?May 8th, 2019
Yes, it's worth buying an extended warranty on a used car.
Buying a used car has tons of benefits; they usually have a lower price tag, hold their value for a longer amount of time, and most dealerships (including ours) have a larger variety for you to choose from. Since the frequency and cost of repairs increases as a vehicle ages, buying a used car also means that the vehicle is more likely to need repairs. An extended warranty can reduce the stress and financial worry that's associated with the repairs a used car may require
Frequency of Repair Graph - shows how the repair costs required to maintain the vehicle increases as the vehicle ages
- Protect you against expensive repairs and part replacements
- Ensure that your vehicle is fixed right the first time
- Create peace of mind and reduce financial worry
Usually, a vehicle's standard manufacturer's warranty covers most unexpected car repair costs during the first 36 months, or 60,000 KM (whichever comes first). Since most major repairs won’t arise until after the 3-year mark, the manufacturer’s warranty likely won’t provide coverage when you need it the most. This is why it’s recommended to get an extended warranty on your used vehicle.
An extended warranty is repair coverage, which usually includes failure of the car’s parts, but not environmental damage. Extended warranties generally provides similar terms to the manufacturer’s warranty that would come with a new vehicle. If you purchase a new car, extended warranties typically begin after the manufacturer’s warranty ends. With a used car, the extended warranty begins once the customer takes ownership of the car.
Covering Unexpected Repair Bills
In most situations, the cost of parts and labour needed to fix your vehicle can be quite expensive, with many extensive repairs costing upwards of thousands of dollars. For example, if your car needs an engine replacement and it's not covered under the manufacturer warranty, the starting cost can be upwards of $2000. Considering that the average net savings for Canadian households last year was less than $1000, this means that if there’s an unexpected car repair, most Canadians wouldn’t be able to foot the bill on their own.
Another benefit of getting an extended warranty is the coverage of replacement rather than repair. Many warranties cover the cost of replacing the part, rather than just fixing it. This is a more long-term solution to your car’s issues, whereas fixing a part is generally a temporary fix. Replacing parts can also prevent the reoccurrence of the same problem down the road.
Warranties at Drive Autogroup
At Drive Autogroup, the extended warranties our customers choose most are Rust Protection, Tire and Rim Protection, and Key & Remote Protection.
- Our Tire and Rim Protection covers your vehicle for 12 months
- The Key and Remote Protection covers you for 36 months
- The Rust Protection covers the vehicle for a lifetime
Extended warranties eliminate the stress of repairing your vehicle, while saving you money, and they can be purchased at any one of our Drive Autogroup dealerships. All of our warranty options are available for both new and used vehicles, either at the time of purchase or at a later date.
At Drive Autogroup, we also offer our Shield program at no additional cost with the purchase of any one of our used vehicles. The Shield program offers a one-year warranty on most wearable parts (including brake pads, tires, belts, and wiper inserts), a fifteen-day exchange window, a lifetime engine warranty, a 120-point inspection to ensure the vehicle’s reliability, and more.
Drive Autogroup also uses a 3rd party software that compares all the prices of used cars in your area to ensure that you’re always getting the best deal when you buy with us. With all this at a 2.9% interest rate, it makes you wonder, why would you buy a used vehicle anywhere else?