Do I really need an extended warranty?
The answer is yes. Here's why.
All cars come from the manufacture with a warranty that covers the power-train and more for a specified amount of mileage and service date.
Thus, most used cars have been in service longer than the terms of the manufacture's factory warranty.
This means that unless the used car dealership offers their own or subsidized warranty, the car will be sold to you "As Is" without any warranty or protection from things like a blown engine or bad transmission.
Generally, used engines on most passenger cars can be replaced for $3000-$4000 and new engines can be between $4000-$6000. Some will be more, some less. The average price of a used car is well over $8000, and if you're looking for a model 3-4 years old, that number jumps to over $20,000.
A used/salvage transmission ranges from $800 to $1500, a rebuilt transmission from $1100 to $2800 and a remanufactured from $1300 to $3400. The labor to remove and replace a transmission ranges from $500 to $1200 for 4 to 10 hours of billed time.
Roadside assistance, also known as breakdown coverage, is a service designed to help you get going again if your vehicle breaks down.
The most common roadside-assistance services include jumpstarts, battery replacements, breakdown tows, tire changes, emergency fuel, and key recovery.
Get the Best Extended Warranty
Buying a used car comes with risk so it is advised that you have some kind of warranty to cover major issues that may develop in the future.
An Extended Warranty is like an insurance policy that covers future mechanical break-downs on used cars and saves you from having to pay the repair cost out of pocket.
There are many extended car warranty companies like Endurance, CarShield and Olive. However all extended warranties are not the same.
Our Staff Pick was Olive and here's why.
The # 1 reason for picking Olive as our Staff Pick was because Olive gives car owners and car buyers the ability to get an upfront quote; online, based on the individual needs of the car buyer.