Looking at it from the correct perspective, a used car warranty is simply not a warranty in the true sense of the term. Firstly, warranty is a term that is related to manufacturers only who are rightly placed to behave like parents of the vehicle, thus capable of taking its complete charge for care and upkeep.
The cost of warranty is built into the price of the vehicle. Secondly, used car warranty has no relation to the manufacturer. It is offered by the dealership and you have to pay for it just like any other service contract. However, the objective of both the arrangements is the same – your car is taken care of by someone else for repairs and maintenance. This can mean a lot to keep the car in good condition, always up and running
Judge it carefully
Since you have to pay for buying used car warranty, you have to weigh the advantages and disadvantages before buying it. The condition of the car and how well you evaluate it will tell you about how it is likely to perform.
Knowing about the possible vulnerabilities in advance will indicate how much it is worth to spend the money on warranty cover. The car history in terms of distance covered, service history and actual technical assessment has to be taken into consideration before deciding to have the warranty. While the warranty can turn out to be a money saver, it can also prove to be a wasteful expenditure about which you have to be careful.
Consider the ground reality
Car warranties by manufacturers are transferable in many cases. Check if you fall under this category when buying a used car. How long the warranty will remain valid has also to be considered.
The longer is the validity less is the reason to look for a new warranty cover. But if the duration of remaining warranty is just too little, then you can think of buying a new one.
Justification of cost
Service contracts are not cheap and the money you pay has to justify the number of incidences of repair that the car might have to undergo. The payout has to be judged in relation to the fallibility of the car that you have to assess.
Having an idea about the cost of repairs involved in the vulnerable parts can help to justify the cost of service. In addition, the tenure of the contract, whatever is excluded and what actually is covered would provide fair reasons to know the correctness of the price that you pay.
Consider the fringe benefits of used car warranty that is offered by many companies. If your car is in the shop for a few days, some contracts offer a car on loan during that period or pay for rental cars. If your car breaks down then in some cases free towing service is also offered.
How well you assess the situation and evaluate the condition of the car will actually decide whether it is right for you to take a used car warranty or not.