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Is Extended Warranty Worth It for Used Cars?  

21 May 2024

Written by Simon England

|  4 Minutes

If you’re in the market for a pre-owned vehicle, you’ve probably come across the option of purchasing an extended warranty. Although a car warranty is a great option for protecting your vehicle, it may not be the best choice for all drivers. Whether or not extended warranty will benefit you depends on a number of factors, including its age, your personal budget, and whether it is a new or used car.

In this guide, we will explore whether or not an extended warranty is worth it for a used car, the best car warranty cover to choose for your used car, and how our extended warranties at ALA can protect you and your vehicle.

Can I get extended warranty for a used car?

Many people wonder whether or not it is possible to get an extended warranty on a used car; in fact, it is entirely possible and often recommended to get an extended car warranty policy for your used car. Some dealerships and third-party warranty providers offer extended warranty options for used vehicles. These warranties can cover a wide range of components and systems, providing you with peace of mind after your original factory warranty has expired.

At ALA, our extended warranty policies have no age restrictions at the start of your policy, so you can protect your vehicle no matter its age. We have three levels of cover ( Silver, Gold and Platinum ) to ensure you get the best coverage for your vehicle and budget.

You can start building your bespoke car warranty quote here.

cars in a showroom

Are extended warranties worth it for used cars

Whether extended warranties are worth it for used cars depends on several factors, including your specific circumstances and preferences.

Advantages of Extended Warranties for Used Cars:

  • Peace of Mind: One of the most significant benefits of purchasing extended warranty coverage is the peace of mind it provides. Knowing that your vehicle is covered for potential repairs can save you from unexpected expenses down the road.

  • Financial Security: Extended warranties can save you money in the long run. Major repairs on modern vehicles can be expensive, and an extended warranty can help offset those costs, often including parts and labour.

  • Convenience: With an extended warranty, you can take your vehicle to VAT-registered repair facilities, ensuring that your car is serviced by trained professionals.

  • Increased Resale Value: If you decide to sell your used car, having an extended warranty can be an attractive selling point, potentially increasing the resale value.

  • Customisation: Extended warranties come in various plans, allowing you to choose the coverage that suits your needs. You can choose between a Silver, Gold or Platinum warranty plan at ALA to suit your preferences.

Disadvantages of Extended Warranties for Used Cars:

  • Cost: Extended warranties can be expensive upfront, adding to the overall cost of your used car purchase. However, at ALA, you can pay for your warranty in monthly instalments, and you don’t have to worry about excess costs.

  • Limited Coverage: Not all extended warranties cover every part of your vehicle. Some may exclude wear-and-tear items, routine maintenance, or specific components. It’s essential to read the fine print and understand what’s included and excluded.

  • Unused Coverage: If your car doesn’t require significant repairs during the warranty period, you may feel like you didn’t get your money’s worth.

By choosing extended warranty coverage at ALA, you’re protected from day one, with no pre-inspection required. You can even choose labour rate options to suit your needs.

What is the downside to purchasing extended warranty for a used car?

As mentioned, the cost and limited coverage are potential downsides to purchasing an extended warranty for a used car. You may not see the benefit of an extended warranty policy if you never need to use it; although, it brings significant peace of mind should the worst happen to your vehicle. Additionally, some unscrupulous warranty providers may have hidden fees or stringent claim processes that make it difficult to benefit from the coverage you’ve paid for.

To mitigate these downsides, it’s essential to:

  • Research the Provider: Choose a reputable warranty provider with a track record of transparency and excellent customer service, such as ALA. Read Trustpilot reviews and ask for recommendations.

  • Read the Fine Print: Thoroughly review the terms and conditions of the extended warranty. Understand what’s covered, what’s excluded, and any specific requirements for maintenance and claim submission.

  • Consider Your Car’s Reliability: Research the make and model of your used car to gauge its reliability and common repair issues. If it’s a dependable vehicle with a low likelihood of major problems, an extended warranty may be less necessary.

  • Compare Prices: Shop around for the best extended warranty deal. Different providers offer various plans at different price points, so take your time to compare options.

2 people in a car

What is the best warranty for a used car?

The best warranty for a used car depends on your individual circumstances and preferences. Here are a few tips to help you determine the right extended warranty for your needs:

  • Coverage: Consider the coverage you need. You can browse our policy levels here.

  • Provider Reputation: Choose a reputable warranty provider with a history of reliability and good customer service.

  • Cost: Evaluate your budget and determine how much you’re willing to spend on an extended warranty. Balance the upfront cost with potential future savings on repairs; you could also choose a provider that allows you to pay for your warranty monthly.

  • Terms and Conditions: Read the warranty contract carefully to understand what’s covered, what’s excluded, and any maintenance requirements.

  • Customer Reviews: Look for reviews and testimonials from other customers who have purchased the same warranty.

To see if we have the right car warranty policy for you, you can start building your bespoke warranty quote here.

Car Warranty with ALA

At ALA, we understand the importance of protecting your investment in a used car. Our extended warranty options are designed to provide peace of mind and financial security, allowing you to enjoy your vehicle without worrying about unexpected repair costs.

Key benefits of choosing an ALA insured extended warranty include:

  • Flexible coverage options to suit your needs

  • Transparent terms and conditions

  • Zero excess

  • No age and mileage restrictions when purchasing your policy

Deciding whether an extended warranty is worth it for your used car involves weighing the advantages and disadvantages while considering your specific circumstances. ALA offers reliable extended warranty options, and our team is here to assist you in making an informed choice. Contact us today to discuss your warranty options further.