Used car warranties can be useful should a vehicle become damaged, but this doesn’t mean that there aren’t factors that need to be considered beforehand.
Regardless of whether you’re purchasing a vehicle for the first time or looking to take out a warranty on a vehicle you already own, there are some considerations that should be made before committing to a used car warranty.
What Does a Used Car Warranty Cover?
The cover a used car warranty offers can differ depending on the provider chosen. There can also be some confusing terms and conditions which can almost seem contradictory to some.
As there is no way of determining what could go wrong with a vehicle, there could be instances when some faults aren’t covered. For example, any damage that occurs when your car is being transported by a car shipping company will not be covered by a warranty.
This can happen in scenarios where poor workmanship has been shown, as well as damage attributed to general wear and tear.
How Much Does a Used Car Warranty Cost?
In many instances, it has been shown that even the cheapest car warranty can be £100 more than the average cost of a repair.
However, there can be instances where some could find that the car warranty, they take out can be up to as much as ten times the cost of an average repair.
This isn’t to say that a car warranty can’t be beneficial, but it can take a lot of research to ascertain what type of warranty is best suited, and by the time the policy has been tweaked, it could become more expensive than first thought.
The Jargon Associated with Used Car Warranties
Another issue that many have with used car warranties is some of the jargon that is used. The following is a breakdown of some of the jargon used when perusing car warranty options.
- Age Limit: Some used car warranties can have restriction in relation to the age of the driver.
- Claim Limit: The aspect of a car warrant details the maximum amount awarded with each claim.
- Betterment: If a repair or new part has made the car more valuable, then a further cost could be incurred.
- Consequential Loss: Instance where one car part affects another, which isn’t always covered with all used car warrantied.
- Excess: The percentage that a vehicle owner must pay in relation to repairs. The amount charged can depend on the type of vehicles as well as the level of cover the policy offers.
- Garage Choice: Some used car warranties may dictate that only approved garages can be used, which gives the vehicle owner less choice when it comes to the cost of the repairs.
- Mileage: As well as other limitations, the amount of distance travelled so far could also have an impact as to how much a car warranty is.
Should You Buy a Used Car Warranty?
Given the many factors that need to be considered in relation to a car warranty, it’s safe to assume that they’re not for everyone.
However, if you are considering a used car warranty, then it’s of the utmost importance that a regulated provider is used. This will ensure that a cooling-off period is in place should the warranty not meet your requirements.