There are a lot of articles out there which talk about whether or not extended warranties are worth it from dealerships. The answer is generally "No" - but they do offer peace of mind and a fixed monthly expense, which can really help from a budgeting perspective.
But what about cars with a few more miles on them, or that you bought used? These are often the best value out there for vehicles. Autos tend to depreciate significantly in the first few years, but new models and big changes only come about every 4-7 years or so. Often, you can get the same car that they are selling new for $30,000, three years old and with 45,000 miles on it for $15,000, or 5 years old with 80,000 miles on it for $7000.
There are a lot of companies out there which offer 3rd party warranties for used cars. But are they worth it?
The short answer is "No." The long answer is "absolutely not."
The issue is this: none of these warranties really cover anything except the engine or drive train. They all have disclaimers that all basic mechanical parts are not covered. That means most of your car repair bill will not be covered.
What is covered then? Not a lot. If your engine blows up they MIGHT cover the cost of replacing it or doing a major repair. But if the issue was caused by "improper maintenance" they don't have to cover a thing. So - if you don't keep a perfect maintenance schedule and have records for all of it, they don't have to pay a dime.
Long story short - used car warranties are almost never worth the money.
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