WalletHub, Financial Company
A warranty on a used car costs anywhere from $1,000 to $5,000, depending on factors like the car’s condition and mileage. In general, used car warranties cost more than regular extended warranties because used cars have more miles than new cars and are more likely to experience mechanical problems.
A used car warranty pays for repairs to a car’s major systems if they break down. In most cases, used cars only qualify for extended warranties that cover the vehicle’s basic components, like the engine and transmission, rather than all of the parts and systems. But coverage options usually depend on the car’s mileage. Some extended warranty providers will cover vehicles with as many as 250,000 miles, while others have lower mileage caps.
When you’re shopping for a used car warranty, you should get quotes from multiple companies in order to make sure that you’re getting the best deal. If you’re struggling to find an affordable plan, you should see if your car insurance company offers mechanical breakdown insurance (MBI), which provides similar coverage to an extended warranty but only costs an average of $100 per year. However, keep in mind that you may not be able to purchase MBI if your car is too old or has too many miles.
To learn more, check out WalletHub’s guide to the best used car warranties.
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