Is An Extended Warranty Worth It After You Buy a Used Car in Calgary?

So, you found an awesome deal on a used car. The price was right, and the seller told you it’s in great condition with no problems. Do you buy an extended warranty? Is it worth it? Let’s find out.

What is an Extended Car Warranty?

An extended warranty is exactly what it sounds like — a contract that extends the manufacturer’s warranty by one or more years beyond the original warranty period. It covers parts and labor associated with repairing your vehicle during that time period. Some extended warranties also cover certain items like tires and batteries that the original manufacturer’s warranty doesn’t cover.

How Do Extended Warranties Work?

When you buy an extended warranty for your car, you are paying for coverage beyond the manufacturer’s original warranty. This means that if something goes wrong with your car, the extended warranty company will cover your repair costs instead of the manufacturer. This can be very helpful if you have an expensive part breakdown and don’t want to pay for a new one out of pocket. It can also save you money in the long run if something breaks down more than once during the lifespan of your vehicle.

Extended warranties typically cover major vehicle components like the engine, transmission, and sometimes high-tech electronic systems. However, they don’t cover regular maintenance such as oil changes, tire rotations, and brake pad replacements. Damage from accidents and regular wear and tear are also typically excluded from coverage.

In Canada, extended warranties can be categorized into two primary types:

• Dealer Warranties: Car dealerships sell these when you buy a used car in Calgary. They often include services specific to the dealership.
• Third-Party Warranties: Independent companies offer these and are typically more affordable. They offer coverage even if services are not performed at a specific dealership.

Pros and Cons of an Extended Car Warranty

Buying an extended car warranty is a big decision, but it’s not the right choice for everyone. Before deciding if it’s right for you, here are some things to consider.

Pros

• Cost Coverage: Extended warranties might cover expensive repairs within the coverage period, so you shouldn’t worry about paying for repairs out of pocket
• Transferability: If you sell your car, the warranty can often be transferred to the new owner, increasing your car’s resale value.

Cons

• Extended warranties can be expensive
• Not all repairs are covered. Understanding your agreement is key to making the most of your warranty.
• They have waiting periods before cover kicks in.

When is an Extended Warranty a Good Idea?

An extended warranty is a good idea when you buy a used car because used cars can have unseen problems. Consider this warranty if:

• You are buying a car with a low-reliability rating or known issues
• You plan to keep the car for a long time, past the expiration of the manufacturer’s warranty
• High repair costs could seriously strain your finances

The Bottom-line
Used cars are not perfect and can break down at any time. But with an extended warranty, you can rest easy knowing that the dealership will cover your car if something goes wrong. This can save you money in the long run and make your life easier.