Buying a car is a big decision. Even if you’re not buying a brand new one and you’re going with a used car in Calgary, you are still investing quite a bit of time, effort and money.
And this means deciding on things like warranties. One of the questions that many buyers have is whether or not extended car warranties are worth it on used cars.
The answer is…it depends.
Here’s what you should consider when buying a used vehicle from a Calgary car dealer and deciding if an extended warranty is right for you, as well as the pros and cons.
Check What’s Being Covered
One of the most important first steps is checking up on what exactly is being covered in your extended warranty.
To start with, most of these will not cover routine maintenance. You can reasonably expect to have to pay out of pocket for things like oil changes and new tires and breaks.
Beyond that, some warranties will only cover very specific components of your car (like the engine), and anything beyond that is excluded.
With that said, some are quite comprehensive, and will cover almost the entire vehicle.
The Pros And Cons Of Extended Car Warranties
If you’re still unsure about whether an extended warranty on a Calgary used car is right for you, here’s a breakdown of the pros and cons.
Pro #1: Reassurance
Anyone who’s bought a vehicle (new or used) that’s required a lot of fixing and repairing can tell you that it’s a stressful experience - particularly when those repairs come unexpectedly (and often at the worst possible time).
By purchasing a (good) extended warranty, you can rest easy knowing that your car is taken care of. For many, the extra money every month is well worth it for the peace of mind.
Pro #2: Avoiding A Costly Repair Bill
Regardless of how well you maintain your vehicle, everyone knows that, when it comes to cars, things happen.
Oftentimes a repair can not only come at a terrible, unexpected time, but it can sometimes cost thousands of dollars as well.
With an extended warranty, you can potentially prevent that kind of massive financial hit in the future (particularly if you don’t have the kind of savings that would allow you to pay for something like that).
Con #1: The Cost Can Add Up
Extended warranties can be a fantastic future money saver…if something happens to your car.
If nothing happens, however, and you’re able to drive it for years without running into a repair issue, the monthly cost of an extended warranty can really add up.
Con #2: Uncovered Parts
While this problem can really be mitigated by reading the fine print in your contract, it’s worth repeating - extended warranties usually don’t cover everything.
And there’s nothing worse than thinking you’re good to go only to run into an issue later on down the road and realize that you’re not covered for it.
Con #3: Changing Cars
If you’re planning to keep your car for a long time, an extended warranty can make sense in a lot of cases. After all, if you’re treating this purchase as a major long term investment, it makes sense to invest in the extras as well.
If, however, you’re purchasing a used car as a temporary solution until you can buy a new one, you may want to think twice about this kind of of warranty. A car that you’re only planning to own for a year probably won’t have any catastrophic problems and there’s a very good chance that you won’t be using the warranty at all.