Used Car Extended Warranty | Ultimate Guide 2023

When the manufacturer’s warranty on your car runs out, you may wonder about purchasing an extended warranty for your vehicle. An extended car warranty may help cover the cost of specific fixes, but not everyone needs one.

A quality warranty from a reputable company can be beneficial, but you should research whether you are receiving a good deal or wasting money. Ultimately, warranty extensions are highly profitable for the businesses that offer them.

Here the question arises whether is buying an extended car warranty worth it for your vehicle. In this article, you will learn about extended car warranties, their pros and cons, and some of the best-extended car warranties providing companies as of 2023.

What is an Extended Car Warranty?

An extended warranty, also called a “vehicle service contract,” is a plan you can buy to help pay for fixes that your car may need while you own it. It usually starts when the warranty from the producer ends, but sometimes the two start simultaneously.

Used Car Extended Warranty Offerings

An extended warranty does not cover everything, though. What do extended car warranties cover? Some cover practically everything a bumper-to-bumper warranty does and routine maintenance. Others merely cover some car systems and eliminate potentially expensive components.

“Exclusionary” and “inclusionary” are frequently used on an extended warranty. An included extended warranty only covers a particular set of parts. Exclusionary extended warranties or service contracts cover everything except the things stated in the agreement on a vehicle. Exclusionary extended warranties, in general, but not always, give more coverage than inclusionary extended warranties.

However, most extended warranties also don’t cover changing the oil, getting new tires, brakes, etc. Most of the time, you have to buy roadside help separately. Read your selected deal carefully to find exactly what an additional warranty does and doesn’t cover.

There are also the following kinds of warranties:

  • Coverage from bumper to bumper: These include most major vehicle systems and cover many production and design problems.
  • Powertrain warranties: cover the engine, transmission, drive wheels, and other parts that keep the car moving.

Before purchasing, you must conduct a study to understand what is and is not covered. Check online owner clubs to find out what parts of your car usually cause trouble, and make sure the extended warranty covers them.

Extended Warranty Cost


When you buy a car from a dealer, they will almost certainly ask whether you want to add an extended warranty. However, dealerships, like the financing they provide, tend to mark up the cost of extended warranties to earn profit.

If you’re serious about getting one, consider bargaining with the dealer or looking into some independent suppliers. The cost of coverage varies greatly depending on what the plan covers and the make and model of your automobile. The warranty’s initial cost might range from $1,000 and goes up to $3000 to $5000 on average.

Furthermore, if you roll the amount of the warranty into your motor loan, you will pay interest — as well as maybe fees — on it.

You may also have to pay a deductible. Deductibles are often levied either per repair or each warranty service visit. It’s critical to understand how your plan’s deductibles operate since if a problem can’t be resolved in one trip to the repair shop, you may end up paying numerous deductibles for the same repair.

You may be required to follow all of the warranty contract’s instructions, such as frequent oil changes, or your contract may be canceled. Keeping thorough receipts for all repair and maintenance work is a good idea.

Worthiness Of Used Car Extended Warranties

Whether used car warranties are worthy or not depends on various factors. When buying a used car, you may be given the option of purchasing a service contract, commonly known as an extended warranty. A service contract requires the dealer to execute or pay for specific repairs or services on the vehicle. You may purchase the coverage for an additional fee.

Here is some advice that might be helpful in determining whether an extended warranty is worth it.


According to Matt DeLorenzo, the senior managing editor at Kelley Blue Book, before purchasing a service contract, check whether any of the original bumper-to-bumper and powertrain warranties are transferable. If so, how much time and mileage is left on that coverage?

Requirements for who does the repairs

Before agreeing to pay for a service contract, thoroughly understand it. Check to see if the service contract requires you to get repairs and routine maintenance done at the dealer. You’ll want to ensure that the service contract’s specifics and obligations work for you.

Warranty costs against average repair costs

While an extended warranty might provide peace of mind, it can also be costly, with prices ranging from $1,000 to $3,000 upfront. Once you’ve received a price from a dealer, determine how much routine repairs cost and what your warranty covers.

Vehicle dependability

DeLorenzo advises considering a vehicle’s quality and reliability ratings. “Cars at the bottom of the quality rankings may be more prone to certain repairs,” he adds. “It’s best to look at a vehicle’s track record and then determine the type of extra coverage that you might need.”

Investigate the options

Do you have reservations about purchasing a secondhand automobile that does not come with a warranty? Consider if the expense of a contract is worthwhile.

Consider the following alternatives:

  • Set aside money for repairs: It will help cover future repairs if you can save money. If there is nothing to fix, you may save the money for your future automobile or spend it on anything else.
  • Rent a vehicle: Using this method, your leased automobile may have a repair warranty. As a result, you may not have to worry about incurring a significant unexpected expenditure. Leasing an automobile has advantages and disadvantages, but it might be more cost-effective than owning one.

Best Used Car Warranties Companies

Source: American Southwest Credit Union


Endurance is a reputable used car warranty company that offers a range of comprehensive coverage plans. They provide flexible options for various budgets and vehicle types, including high-mileage and older cars.

Endurance stands out for its affordable pricing, transparent terms, and simple claims process. They also have a nationwide network of authorized repair facilities, ensuring customers can easily access quality repairs when needed.


ForeverCar is a leading provider of used car warranties known for its straightforward plans and excellent customer service. They offer customizable coverage options that cater to specific vehicle needs.

ForeverCar’s plans often include additional benefits such as roadside assistance, rental car reimbursement, and trip interruption coverage. They pride themselves on their fast claims processing and helpful customer support team, ensuring a hassle-free experience for policyholders.


Olive is a popularly used car warranty company focusing on simplicity and transparency. They offer comprehensive coverage plans with transparent terms and conditions, making it easy for customers to understand their level of protection.

Olive’s plans often include roadside assistance, rental car reimbursement, and trip interruption benefits. They stand out for their user-friendly online platform, which allows customers to manage their policies and file claims easily.


CarShield is a well-established used car warranty provider offering various coverage options. They have customizable plans that cater to different vehicle types and budgets.

CarShield’s plans often include benefits such as roadside assistance, rental car coverage, and trip interruption services. One notable feature of CarShield is its reputable network of repair facilities, ensuring that customers can access reliable repair services nationwide.


CARCHEX is a trusted name in the used car warranty industry, providing comprehensive coverage plans for many vehicles. They offer flexible payment options and have plans specifically designed for high-mileage and older cars.

CARCHEX is known for its excellent customer service, with knowledgeable representatives who can assist customers throughout the claims process. They also provide additional benefits like roadside assistance, rental car reimbursement, and trip interruption coverage.


Should I get an extended warranty for my used car?
Consider the value, mileage, and condition of your used automobile to determine whether purchasing a warranty is wise. A used vehicle warranty may be a smart choice if you want to use the car for a long time and want peace of mind regarding covered repairs.

Who has the greatest warranty on used cars?
CARCHEX is our pick for the finest used car warranty. CARCHEX is an excellent alternative for used automobile coverage, with a solid industry reputation, coverage for up to 250,000 miles, and a wide selection of service plan options.

Is it possible to receive a warranty on a used automobile after you buy it?
While some dealerships will try to offer you additional coverage when you purchase a new automobile, you can typically get coverage from the manufacturer until the original warranty expires.

Independent warranty firms may purchase vehicle service contracts with practically any mileage. However, older cars may not be eligible for all vehicle service plans.

How much longer are the majority of used car warranties?
Used automobiles do not come with extended warranties. Manufacturer CPO warranties, on the other hand, often last one or two years after the factory warranty ends. Depending on the supplier, extended used car warranties can run anywhere from one to five years.

Bottom Line

When purchasing a used vehicle, it’s crucial to determine if a warranty or service contract is included. If not, it’s essential to carefully consider whether investing in an extended warranty fits within your budget.

Consider your financial situation and assess whether you can comfortably handle potential repairs out of pocket. By making an informed decision, you can confidently navigate the road ahead and enjoy your used vehicle with peace of mind.

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