Published On: Fri, Mar 7th, 2014

The Pros And Cons Of Buying A Used Car Warranty

Anyone that has ever gone out and purchased a used car from a car dealer will have been offered the option to buy a used car warranty. In many ways, they are similar to new car warranties, in that if something major fails on the car, the warranty company will cover the repair costs.

The Pros And Cons Of Buying A Used Car WarrantyIn reality, used car warranties are basically an insurance product, and, as with all insurance products, there are going to be certain policies which would be better suited to your individual needs.

If you are in the process of buying a used car, and you have been offered the option to take out a used car warranty with your new purchase, you should take a look at these pros and cons before you part with your cash.

Pro: you have added peace of mind

The truth about buying used cars is you just don’t know when something major might fail in your car. Although the likelihood of your car breaking down will be minimal if it is properly maintained, sometimes unexpected faults can occur – and they are usually ones which cost a lot of money to put right!

A decent used car warranty will ensure that most problems which are likely to occur with used cars, such as head gasket, turbocharger or gearbox failure will be put right, so that you don’t have to panic about potentially paying out thousands for an expensive repair job.

Con: not all used car warranties are the same

As with all insurance policies, used car warranties do not all offer the same benefits. In fact, some policies can be extremely restrictive about what they will and will not pay out for, making them some not worth the paper they are written on!

Before you consider buying a used car warranty, either through a car dealer such as or arranged separately online, it is important that you read the small print to determine what it is that you will be paying for.

It is not unusual for some used car warranty providers to offer different “levels” of cover, with the cheapest not really covering much at all, and the dearest providing the most comprehensive level of cover should things go wrong.

Pro: breakdown cover

A number of used car warranties also include breakdown cover as standard, either through mainstream providers such as The AA or through their own network of independent recovery agents.

The great thing about such warranties is that you do not need to take out separate breakdown cover, so you are effectively lowering your motoring costs – which is always a good thing! Bear in mind that not all used car warranties provide breakdown cover, so check whether it is included or not before you sign up.

Con: claims can sometimes require a big excess to pay upfront

As used car warranties are insurance policies, if you make a claim on it you will normally have to contribute an amount of money upfront; this is known as the excess. Some warranty companies can charge large excess amounts, so be sure to check what you are likely to have to pay out for a claim before you agree to take a warranty out.