Used Car Warranty: Yay or Nay?
For a more detailed answer, continue reading as we take a look at the reasons why an extended warranty or vehicle service contract may be a good choice for you or not. It really does come down to what your current situation is and the intended use of the car.
What is a used car warranty?
A used car warranty is an extension you can opt for on a car that is a certified pre-owned vehicle from the vehicle manufacturer. A used car vehicle service contract is a form of coverage offered by a third-party provider. It is a kind of mechanical vehicle protection that gives you the peace of mind that repairs are covered when you experience a mechanical breakdown. They are coverage plans meant to ensure that all necessary repairs are done in a quick and reliable fashion.
What is covered under a used car warranty or vehicle service contract?
A car warranty is a coverage that specifically looks at mechanical components and in some cases electronics of the vehicle. Used car warranties or extended car warranties are most often sold in two variations from the manufacturer. These are the Powertrain and Bumper-to-Bumper warranty plans. Both cover key components of your car that ensure your car remains powered and functional. Vehicle service contracts offer similar coverage under powertrain, powertrain plus and most comprehensive plans.
Powertrain Plans cover the components that make up the drivetrain of your car as well as the power source. The drivetrain is made up of the front and back axle, driveshaft, transmission, CV joint, U joint, and differentials. The power source is typically the engine of the vehicle. Though there are more vehicles moving over to electric power or a hybridization of the two. Overall most warranty providers will cover the following parts under a powertrain warranty:
- Engine (power source)
- Transfer case
- Drive box
- CV Joint
- U Joint
Some providers give enhanced warranty plans for powertrain warranties that may have extra benefits and parts included. Offering a somewhat “medium” coverage for your car. We offer powertrain plus plans through our third-party providers for an in between coverage option.
Bumper-to-Bumper or Most Comprehensive Plans
If you are in the market for a plan that offers complete coverage then this will likely be the option for you. As the name suggests, most components between your front and rear bumpers will be covered under a Bumper-to-Bumper plan and the same goes for the most comprehensive vehicle service contract. Your drivetrain, power source, steering components, AC, safety features, tech systems, electrical parts, and in some cases certain emissions elements are all covered. Sometimes these types of plans are also referred to as exclusionary plans as they exclude very few items in general. In fact here is a list of what is NOT covered by bumper-to-bumper warranty plans and most comprehensive vehicle service contracts:
- Wiper Blades
- Brake Pads
- Body Panels
- Interior Trims
- Turn Signals
- Brake Lights
- Regular Maintenance
- Accidental Damage
Many of the plans found on Chaiz also include added benefits such as towing services, gas delivery, roadside assistance, and tire changing services. Greatly beneficial if you travel frequently by car.
Is a used car warranty worth it?
Considering the general attitude towards warranties, it may surprise you that used car warranties are helpful. Many of us do not have the capacity or resources to pay for a $500 or $1,000 dollar repair bill out of pocket. Keeping that kind of money aside just in case a mechanical repair is needed is not always that simple.
Many of us have trouble managing one savings pocket as it is, establishing multiple savings avenues and pockets can be daunting and sometimes require skills/time that is not necessarily easy to come by. So here are a few good reasons why a used car warranty or vehicle service contract is worth it:
- Repairs on critical parts are covered
- If you travel frequently by car
- If you are buying a used car outside of warranty
- Option of roadside assistance
- Being prepared for inevitable mechanical problems
- Vehicle purchase for your child or other loved one
- Your own vehicle is about to go out of warranty
Though paying towards this may seem a bit empty there is great purpose in it. Knowing you have protection when you need it takes the stress out of your life. Cars will have some or other issues along the way, so keep your car protected with a used car warranty or vehicle service contract.