Any experience of buying a used car warranty?

[ayceejay]

One thing that is a given is that used car dealers are not honest so buyer beware.

 

[CopperCyclist]

Extended warranties from dealers are usually ok, as they usually cover everything.

Warranty only companies aren't so good, as they have lengthy lists of what their 'warranty' does and doesn't cover, and you can beg that what breaks for you won't be covered.

These companies wouldn't make money if they paid out more than they made. It's a gamble with the odds in their favour.

Manufacturers extended warranties are similar - but as they cover everything, the risk is more on them. Their shortfall is then however covered by the fact you by the car from them, and often go to them for servicing too!

 

[beanzontoast]

We had a good read of the details when they came through in the email last night and one or two of the exclusion clauses seem quite open-ended. One, for instance, says items that are deemed near the end of their life are not covered. Who decides whether that clause applies, I wonder?...

Another chat last evening and have decided it would be more straightforward to go with giving her some money to put away for the inevitable running costs and minor repairs.

 

[MattHB]

Extended warranties on cars are a way for the seller to save VAT on the profit margin. It's about their only function, and they do that very well.

Get the dealer to increase the warranty period, they will because it means they can invoice it up even more which will save them even more vat.

 

[byegad]

I don't take these out on any item on general principle. The people selling them expect to make a profit, we have TVs, DTRs, a DVD player, a VHS recorder, a PS3, several radios, Cd player, a washer/drier, a fridge/freezer, an electric cooker, laptops, cameras (some of them expensive), two cars, three trikes, three bikes and several small gadgets. That's a lot of profit! The amount of money I've saved in not buying extended warranties on these would buy a small car!

However, we are retired and have some capital to lay out if something dies, if you have a car and nothing else maybe you should take the warranty, but the devil is in the small print and beanzontoast's post above says it all, the insurer decides on the vague clauses, not the owner!

 

[Crankarm]

Generally not worth the paper they are printed on. If you do go for one, go for an EXCLUSION warranty which states what it excludes so unless it is specifically excluded it is covered.

If you are that worried about the condition of the car then get a full inspection and vehicle check (HPI) before buying. This will be far more worthwhile in the long run. Any sniff of neglect, crash, insurance write off or finance then don't touch with a barge pole.

What car, model, age and mileage? Fleet/private seller?

 

[beanzontoast]

Generally not worth the paper they are printed on. If you do go for one, go for an EXCLUSION warranty which states what it excludes so unless it is specifically excluded it is covered.

If you are that worried about the condition of the car then get a full inspection and vehicle check (HPI) before buying. This will be far more worthwhile in the long run. Any sniff of neglect, crash, insurance write off or finance then don't touch with a barge pole.

What car, model, age and mileage? Fleet/private seller?

Just over 3 years old, average mileage. Car supermarket which we've used before and had good experience with. They seem pretty thorough and open about inspection and making reports public and do the HPI check.

 

[byegad]

My wife worked for Lloyds bank as a typist and spent a lot of time typing letters, dictated by her boss, telling customers why this or that reason meant their PPI insurance did not apply. This made us wary of this kind of thing long ago!