Should You Buy an Extended Warranty for a Used Car?
Most of the time, you probably don’t need an extended warranty on a used car, but here’s when you might want to consider one.
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Most of the time, you probably don’t need an extended warranty on a used car, but here’s when you might want to consider one.
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Our advice to first-time car buyers is essentially the same as for any car shopper: Before setting foot on a dealer’s lot, thoroughly research and gather all the information you can. Having said that, here are a few things to consider as you embark on your first car-buying journey.
Buying a car comes with additional fees. Some of these, like state or local taxes, won’t be negotiable, but many of the others might be.
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A car lease is an agreement that gives the consumer the right to use the leased vehicle over a set period. Instead of outright ownership, car leasing works more like a long-term rental where the driver doesn’t own the vehicle but is still responsible its use. Leases are subject to term limits, usually two or three years.
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Powertrain warranties typically last longer but have less coverage than bumper-to-bumper warranties. Make sure you read your plan thoroughly to understand which items and situations are excluded from warranty coverage.
Avoid surprise lease-end fees: understand normal wear vs. excessive damage, fix dents, scratches, glass, and tires early, get a pre-inspection, clean the car, and report accidents promptly.