Bumper to Bumper Car Warranty on Second Hand Car

It depends, Noddy: what's the duration of the warranty? Usually second
hand cars will get a 90 day warranty only and for that $ 2000 is way too much. If it's 24 months or 50,000 miles, whichever comes first, then it
is a well spent expenditure.

sometimes there are hidden warranties in your contract that you dont have to pay more for.

it really depends on the used car you bought though.

Some are almost to the mile, going to have the exact thing break as every other one of that model did at that time

( example 75,000 miles is pretty much par for the course in the corolla for replacing its clutch..)

Noddy is this actually through the dealership?

Many secondary companies provide used car warranty programs, but I have yet to find one worth the $$.

If it is a manufacturers warranty, then read it more closely, it may be worthwhile.

This, and extended warranties in general, are usually with third parties unrelated to either the dealer or manufacturor. Dealers usually get a good commission for pushing the deals, however. Anyway, $2,000.00 sounds like an expensive insurance premium on a $9,000.00 investment.

I am having the exact same discussion with my spouse over our brand new used car. My opinion is that warranties are like gambling-- and the dealer always comes out ahead.

On the other hand... the possibility of facing an "I told you so" moment makes me think twice.

Re: Bumper to Bumper Car Warranty on Second Hand Car


What kind of car, and what's the term for the warranty?

It's almost definitely not a dealership or manufacturer warranty, it's most likely through a 3rd party company, which on a positive note you can take it almost anywhere for work to be done.

And it's not "bumper to bumper." The most comprehensive extended warranties don't cover brake pads, plugs, interior & body trim, ect. But can still be pretty close to bumper to bumper.

If it's on a chevy sedan(not a corvette or 4X4), $2K sounds very expensive, but I don't know what the details are. Whether or not you should cancel is your call...I used an extended warranty to replace an engine and rebuild a transmission in a car I had, so it was a great investment in that case.

However, the warranty company has a small profit margin on the dealer cost, then the dealer marks it up, which in this case was probably a lot. The warranty company bases dealer cost and their profit margin on average cost of projected repairs for that car with it's mileage range. So chances are, you're not going to use over $2K in repairs for the warranty unless an engine or transmission goes, or you just have a piece of sh!t. But in some cases, extended warranties are almost a must, especially on cars like Audis, or other cars with a lot of high-tech parts.

The car is a 2006 Chevrolet Aveo and the service contract was not from Chevrolet or from the Dealer, but a third party.

It has been cancelled, thanks in part to your input.

Also, the loan officer at our Credit Union had a low opinion of the third party.

Many, many thanks.

I feel both thrifty and wise.

Good...an Aveo should be very cheap to put a warranty on.

A warranty isn't a bad idea, but not for $2K.

Slappy--

Many thanks. You can be a useful man to know.