The country sees almost 1.2 times more in sales of used cars. So, people are bound to ask if you can get an extended warranty on a used car? It is essential to understand what an Extended Warranty is.
What is Extended Warranty? Is it applicable to used cars?
It is essentially an insurance policy on your car that will cover the substantial damage costs or any unforeseen repairs that may occur. A car dealership usually provides an extended warranty on the used car since the warranty by the manufacturer has already passed. You will have to pay some extra amount for the extended warranty.
Tips to keep in mind before purchasing an Extended Warranty
Things to keep in mind before taking that extended warranty by the dealership-
- Number 1- Who is the provider of this Extended warranty?
Check if it provided by the insurance company, dealership or the manufacturer.
- Number 2- What is the condition of the car?
Sometimes there may be no need for a warranty for it was not as used. It means that you wouldn’t require the extended warranty at all. You will get to know that by reading the policy documents before making a purchase.
- Number 3- Check the warrant period.
It is to ensure you know when the extended warranty period on your used car starts and expires. It will also tell you if the extended warranty kicks in before or after the manufacturer’s warranty.
- Number 4- Extended Warranty requirements
There may be specific criteria for application of the warranty. They tell you what kind of damage and repairs it covers. Keep in mind that the requirements will vary from vehicle to the policy provider. Each will have a different criterion.
- Number 5- Do you need it? How much do they cost?
An average warranty on a Mahindra or Maruti car will chomp down anywhere between Rs 5,000 to Rs 25,000 of your hard-earned money. Luxury cars will cost you upwards of Rs 25,000.
However, different dealerships offer different prices for a 3-month extended warranty. You will not find any extended warranty providers online!
Conclusion-
It is crucial to keep in mind that most of these vehicles go through thorough checks before they put it up for sale! Also, the fact that most of us keep getting the car checked regularly say between 4- 6 months. So, there isn’t a need for one unless you think you may require it.
Moreover, extended warranties on used cars are the dealerships ways of making more money out of you. If you are regular with your checks of the vehicle and take good care of it, you may not need for one.
To conclude, be a wise consumer and read the pointers mentioned above before jumping and making decisions that could drill a hole in your pocket.