What You Need to Know About Car Warranties
If you just bought a new or used car, the last thing you want to pay for is an expensive car repair. Is a car warranty the answer? Let’s explore when you should consider a warranty, when you should skip a warranty, and what you should look for in a warranty if you should choose one.

When should you buy a used car warranty?

While most vehicles will not need major repairs, 20-28% of them will. If you want the peace of mind that comes with a warranty, then you should find one that makes sense to your budget and lifestyle.

A used car warranty also makes sense if you are purchasing a car that is less than reliable. You can find reliability ratings for vehicles online, speak to a knowledgeable mechanic, or hear from fellow owners of the specific make and model of car to help you determine whether or not the car you are purchasing has a higher chance of needing big repairs soon. You can also learn about which repairs are common for your specific vehicle.

If you are self-aware enough to know you will not save money to pay for future repairs, buying an extended warranty may be a smart move for you. An extended warranty allows you to have a predetermined monthly payment instead of a large, surprise cost.

When should you skip a warranty?

Don’t bother worrying about a warranty if you are one to switch your ride every few years. If you won’t be keeping the car for a long period of time, you have a lower chance of running into expensive problems during that time.

If the car you are buying is covered by the factory and manufacturer’s warranties, there is no need for you to pay extra to protect your car twice. And since you can’t see into the future, it is impossible to know if you will even own the car once the manufacturer’s warranty runs out. You don’t need to pay for coverage in the future that you may never need. Once the manufacturer’s warranty has expired, you can reassess to determine if a warranty would be a smart move.

When you receive robocalls offering an extended warranty on your used car, beware. These are often scams. Do your homework on third-party companies you may consider for your car warranty. While there are many reputable options, there are some warranty companies that are set up as scams and will take your money every month without offering you anything if a problem arises with your car.

If you know you will be able to afford to take care of any issues that may arise, then you don’t need to worry about a warranty and you can just pay for your repairs as they come.

What should you look for in a used car warranty?

If you decide a car warranty is the way to go for you and your new or used car, you will want to do your homework as not all warranties are created equally. Here are some things to consider when you shop around.

  • Exclusion warranty. Ideally, you want to find a used car warranty that is an exclusion warranty. An exclusion warranty will come with a list of all the things that it “excludes” or fails to cover. You are more likely to be able to get a problem taken care of under a warranty if it is an exclusion policy. Typically, warranties will not cover normal wear and tear (such as brakes, tires, normal wear on paint, etc.).
  • Cost-effectiveness. Research the typical cost of common repairs your vehicle may need. If you would be paying more than the repairs may cost, find a plan that better fits your needs.
  • Know the little details. Find out if the warranty has a deductible and how much it costs. You should also research which facilities can perform repairs, and if the warranty pays directly for the service or if you have to pay at the time of service and then file for reimbursement. As you discover all the details, make sure you only buy a plan that fits your life. You don’t want to be paying for a warranty that only covers repairs somewhere out of state, or a warranty with a deductible higher than what the car is worth.

Here at TJ Chapman Auto, we offer our customers a Peace of Mind Warranty. After years of working through third-party warranties and seeing them backfire repeatedly, we decided to go with the Peace of Mind warranty that we back ourselves.

We tailor our warranties to fit the needs of you, your car, and your budget. If your car has a mechanical issue, you can call our Peace of Mind administrator to get work approved and then we pay for the work. This is a nationwide warranty, so even if you do not live and drive your used car in the Salt Lake City, Utah area, your car repairs under the Peace of Mind Warranty can be addressed by a service center near you. Our warranties extend from one-year, bumper-to-bumper coverage up to $100,000 of comprehensive coverage.


What You Need to Know About Car Warranties