Is it Worth Getting Extended Warranty on a Used Car?May 14th, 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 Nissan Manufacture Warranty covers most unexpected car repair costs during the first 36 months, or 60,000 KM (whichever comes first). Since most major repairs won’t arise until after the 3-year mark, the manufacturer’s warranty likely won’t provide coverage when you need it the most. Nissan’s standard manufacturer warranty, for the most part, exists in case one of the car’s parts is defective, since this is the only reason one of the parts covered under the warranty should break down in less than three years. This is why it’s recommended to get an extended warranty on your used vehicle.
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.
Extended Warranties Protect you Against Expensive Repairs
In most situations, the cost of parts and labour needed to fix your vehicle can be quite expensive, with many extensive repairs costing upwards of thousands of dollars. For example, if your car needs an engine replacement and it's not covered under the manufacturer warranty, the starting cost can be upwards of $2000. Considering that the average net savings for Canadian households last year was less than $1000, 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.
Extended warranties can vary greatly in price, length of time they cover you for, and what’s covered under the warranty. At Midway Nissan in Whitby (and all other Drive Autogroup dealerships), we offer various types of extended warranties including:
- Tire and Rim Protection, which covers tires and rims that are damaged from road hazards; it can be applied to both the original and the replacement tires
- Key and Remote Protection, which covered the deprogramming of the old key/remote, and the purchase and reprogramming of the new key/remote
- Rust Protection, which includes a rust inhibitor spray (a waterproof product that’s sprayed into the car’s cavities) or a corrosion control module (a microprocessor that creates a pulse on the car’s surface to prevent oxidation)
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.
Drive Autogroup also uses a 3rd party software that compares all the prices of used cars in your area to ensure that you’re always getting the best deal when you buy with us. We also offer a 2.9% interest rate on all Shield certified used vehicles, which makes you wonder, why would you buy a used vehicle anywhere else?