Buying a new car is not only one of the most exciting purchases, but also possibly one of the most expensive purchases in a person’s life. And this doesn’t mean buying a brand-new car; second-hand vehicles can also come with large financial costs.

However, what could be worse than the excitement of buying a car being ruined by something going wrong with it? If you don’t have any form of insurance to cover you for faults in the vehicle, then you may end up paying over the odds to have your vehicle fixed. This is why a warranty is so important, and why you should consider an extended warranty on a second-hand vehicle.

What is an extended car warranty?

When you purchase a new vehicle, you will automatically receive a manufacturer’s warranty that often lasts around three years but after this, you will not be covered for any parts of the vehicle. This is when an extended warranty comes in handy.

If you’ve bought a vehicle new, then you could purchase an extended warranty during the initial sale of the vehicle, or before the warranty runs out. Likewise, if the car is second-hand, then you can purchase a warranty straight from the dealership or from a third party. When you do so, you can often choose a policy ranging from three months to a year.

More often than not, an extended policy will cover things similar to those in an original policy. If you go through a third party, then there will be different tiers of cover depending on how much you are willing to pay. Going through an independent company might mean you have to haggle to get a good deal.

What does an extended warranty cover?

In-order to know whether or not you need a warranty, you should know precisely what an extended warranty covers. Different warranties cover different things, but in general, most cover:

• Engine
• Suspension
• Electronics
• Gearbox
• Air conditioning
• Airbags and dashboard screens

Possibly, more importantly, you should know what isn’t covered so that you can be sure you are not hit by a nasty surprise if you do decide to claim:

• Windscreen
• Tyres
• Wheels
• Paintwork
• Scratches
• Wear and tear

In order to ensure that you are entitled to your warranty, you will have to follow certain procedures, such as have your car serviced regularly with an approved garage. With this, you will also need to provide the necessary paperwork to prove it has taken place.

Should you get an extended warranty?

With all of this information about used car warranties, is it something you should definitely be purchasing for your vehicle? Well, that mainly depends on the age of your vehicle and how many miles you’ve driven.

If your vehicle was bought by you new and it has run out of its manufacturer’s warranty, then it will be worth purchasing an extended warranty to ensure your vehicle is safe from any major faults happening. The same goes if the vehicle is under ten years old and doesn’t have many miles.

If, however, the vehicle has been driven over 100,000 miles or is old then an extended warranty may not even be an option. Most companies will not offer older vehicles a warranty as it wouldn’t be worth it and it would be cheaper to have the car repaired yourself rather than take out a claim on a warranty policy.

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