There are mixed reviews by automotive experts on other aftermarket warranties, often billed as “vehicle protection plans” and “service contracts.” Some people believe they can save a lot of money. Others feel that they aren’t redeemed enough to warrant the out-of-pocket cost, and that paying for repairs alone is more cost-effective.
Autotrader, a vehicle value estimator and buying/selling tool, says that an extended warranty is rarely a good buy on a used car, but there are a few exceptions. If the car is notoriously unreliable (check J.D. Power reliability ratings), purchasing a warranty can be a smarter buy.
Drivers should look for an exclusionary (bumper to bumper) warranty, which covers all items except for ones specifically excluded on a list. This type of warranty is more comprehensive, and there’s less of a risk that a claim will be denied.
Other warranties include powertrain warranties, which only cover the vehicle’s most important and expensive components. A WRAP warranty also may be attractive, as it will extend coverage to the few items that may no longer be covered by the original manufacturer’s warranty.
Buyers also can try to negotiate a warranty, if the car is not CPO, into the purchase price as an incentive for buying the vehicle. Individuals can speak with the salesperson to find a deal – and coverage – that works for them.
Warranties are an option that may help buyers feel a little more secure in their purchases.