Is it Worth Getting Extended Warranty on a Used Car?May 15th, 2019
Yes, it's worth buying an extended warranty on a used car.
Buying a used car has tons of benefits; they usually have a lower price tag, hold their value for a longer amount of time, and most dealerships (including ours) have a larger variety for you to choose from. Since the frequency and cost of repairs increases as a vehicle ages, buying a used car also means that the vehicle is more likely to need repairs. An extended warranty can reduce the stress and financial worry that's associated with the repairs a used car may require.
- Protect you against expensive repairs and part replacements
- Ensure that your vehicle is fixed right the first time
- Create peace of mind and reduce financial worry
The Hyundai Manufacture Warranty covers most unexpected car repair costs during the first 60 months, or 100,000 KM (whichever comes first); this protects you in the event that one or more of the car’s parts are defective, but not for regular degradation of the vehicle. Since most major repairs won’t arise until after the 5-year mark, the manufacturer’s warranty likely won’t provide coverage when you need it the most. This is why it’s recommended to get an extended warranty on your used vehicle.
The Frequency of Repair graph shows how the amount one spends on repairs for their vehicle through annual maintenance costs changes as the vehicle ages. The overall trend you can see here is that as your vehicle gets older, especially after the manufacturer’s warranty expires, the car begins to break down and requires more repairs than it did when the vehicle was new.
An extended warranty is repair coverage that generally provides similar terms to the manufacturer’s warranty that would come with a new vehicle. This warranty usually covers failure of the car’s parts, but not environmental damage. For example, if your car needed a new transmission, after the manufacturer’s warranty had expired, an extended warranty could cover the entire repair bill.
Covering Unexpected Repair Bills
In most situations, the parts and labour needed to fix can be quite expensive, with many extensive repairs costing upwards of thousands of dollars. Considering that the average net savings for Canadian households last year was less than one thousand dollars, this means that if there’s an unexpected car repair, most Canadians wouldn’t be able to foot the bill on their own.
Another benefit of getting an extended warranty is the coverage of replacement rather than repair. Many warranties cover the cost of replacing the part, rather than just fixing it. This is a more long-term solution to your car’s issues, whereas fixing a part is generally a temporary fix.
At Ajax Hyundai, some of our most popular types of extended warranty are: Tire & Rim Protection, Rust Protection, and Key & Remote Protection. These types of warranties are available both at the time the vehicle is purchased or at a later date and can be purchased at any one of our Drive Autogroup dealerships.
At Drive Autogroup, we also offer our Shield program at no additional cost with the purchase of any one of our used vehicles. The Shield program offers a one-year warranty on most wearable parts (including brake pads, tires, belts, and wiper inserts), a fifteen-day exchange window, a lifetime engine warranty, a 120-point inspection to ensure the vehicle’s reliability, and more.
Our Shield Program also offers 2.9% financing for 24 months on all certified pre-owned vehicles, available exclusively at Drive Autogroup dealerships.