Should you opt for an extended warranty on a used car?

If you are considering buying a used car, there are many things to consider, such as price, make and model of the car, safety rating, fuel economy and options, just to name a few. So it makes sense that most people, after stressing over all of the above, may not be as ready to commit to an extended warranty, on top of everything else. But if you want to protect yourself and have rights under the used car lemon law, you should at least consider it.

So, what is an extended warranty? Typically, it is repair coverage that takes effect after the manufacturer’s warranty has expired. It covers most major repairs and in theory will help stabilize the cost of repairs. Keep in mind that you can purchase an extended warranty at any point in time before the manufacturer warranty expires.

Here are some things to consider before saying yes to an extended warranty:

   * Do you plan on keeping the car long term? If you typically trade in your vehicle every two or three years, an extended warranty may not be necessary.

   * Who stands behind the warranty? There are many third party companies that hold extended warranties, and not all of them are reputable. It’s best if the extended warranty is held by the manufacturer. Make sure that the warranty you choose is good at any repair shop, not just at the dealership that sold you the car.

   * Search for the best price on an extended warranty. Some dealerships will try and tell you that the price is non-negotiable; but that isn’t necessarily true. Do your homework and shop around for the best price.

Buying a used car can be a risky venture if you’re not prepared. Thanks to the used car lemon law, your rights are protected, but that doesn’t mean you shouldn’t conduct your own research before visiting a dealership. Krohn & Moss, Ltd. Consumer Law Center can provide representation if you need a professional lemon law attorney.

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