Is it worth buying an extended warranty on a used car that has 51,000miles on it?

Question

I have a hyndai accent 2dr, with 51,000 miles on it, but is it worth buying the extended warranty. it cost $1475.00, but covers 4years/100,000miles. Anyone have experience with this, or on what I should do..Thanks so much!

Answer 1

Hi Kenny,

As a prior service manager of new car dealerships I'd have to recommend that you purchase. I've seen many cases where an extended contract has saved literally thousands of dollars for repairs.

With the age and mileage of your car it would be a safe buy, you may not ever need it, but if you do then you have some satisfaction of coverage.

But I also suggest that your careful in your choice of warranties, it's always a safe bet to buy the manufactuer warranty and not an aftermarket.

Aftermarket warranty companies come and go, here today and gone tommorrow along with your dollars leaving consumers stuck with out coverage.

One of the most recent of these is WPC Associates Inc. from Harrisburg, Pa. (Web site link below) Seized operations as of Aug 22.

Also if you purchase make sure you maintain your vehicle with all the required services as listed by Hyundai. I've seen cases where claims were denied because of lack of maintenance or lack of receipts for maintenance.

Anothe issue for denying a claim is modifying the vehicle beyond factory specs, this includes larger or smaller tires or almost any other modifications.

I once had a claim denied on fuel pump that failed because the owner had larger tires than what the truck was built for, it stated in his contract that any modifications may result in claim loss.

1--Deal witha reputable company, preferably the manufacturer
2--Understand the contract, know what it does and doesn't cover
3--KNow what repair facilities will honor the contract
4--Know what they will pay the repair facility, meaning will they pay full retail rates to the shop or will you be required to pay for shop supplies, differences in parts prices and or labor rates
5--Know what your deductible is, is it for each repair or each visit?
6--Another crucial factor is rather it covers consequential damage or not, example: If the water pump fails and damages the engine, will it cover just the water pump or the engine as well.
7--Does it cover what's considered "wear and tear items", not maintenance items but wear and tear such as suspension components and seals and gaskets
8--Does it cover pre-existing conditions? Example: If the engine starts knocking shortly after purchasing and it's determeined that it's because of the previous owners lack of maintenance, then is it still covered?


Jerry Christopher
http://www.usedcarwise.com

Answer 2

Read and Understand the contract, in the long run it will save you money on AC repairs, window motors, and ofcorse the BIGGIE trans & engine - just make sure your getting coverage for those items - if its just a power train warranty - its not worth it -
see if it has rental coverage also and what the peramiters are

dont, i mean DONT take any sales/finance guys word for it they use terms like "bumper to bumper" - bullshit no such thing - READ the contract then purchase it... the sales geek makes a nice commision on these contracts $50 - $100

Answer 3

Extended warrenty is always good..just read contract carefully. I bought a used truck with 53,000 km and extended warrenty...2 months later the transmission went which the warrenty covered. Very glad I got the extended warrenty.

Answer 4

don't buy it. just put that $1475 in a savings account to spend on any repairs. the chances of you having to use the extended warranty for repairs costing $1475 is slim if you properly maintain the vehicle. so if you buy it, you most likely through the money out of the window.

Answer 5

yes... just make sure to read the warranty contract!

Answer 6

buy it.

Answer 7

BUY IT!!!