15 Secrets to Buying a Used Car

9. The Extended Warranty is Rarely Worth It

One of the reasons that people choose to buy from dealerships rather than private sellers is the availability of an extended warranty. This warranty is generally offered as a service contract, meaning you will pay extra for it on top of the cost of the vehicle. These warranties cover limited repairs to certain parts of the vehicle, but they don’t pay for regular wear and tear or accident-related damages.

Before you opt for an extended warranty, check to be sure that the manufacturer’s warranty is no longer in effect. Many car manufacturers are offering longer warranties, and these often transfer to the new owner, making the dealership’s service contract an unnecessary added expense.

Even if there is no existing warranty on the car, the service contract may not be worth the added cost. Most last for only a few years, and buying it is a gamble since there’s never a guarantee that you’ll use the warranty before it expires. It’s often a much better deal to skip the warranty and save some money. You can always use the money you saved down the line if something does happen with the car.