If you're in search of a new set of wheels without breaking the bank, buying a used car can be the smart choice. Unfortunately, you might not be able to benefit from the original factory warranty due to its age or mileage. Purchasing an extended warranty for your vehicle can give you greater peace of mind outside of the original factory warranty period.
If your vehicle has already racked up over 100,000 miles on the odometer, you might be wondering if your vehicle has too many miles or is too old for an extended warranty. The following provides an in-depth explanation that can help shed some light on the issue.
How Old? That Depends on Your Warranty Provider
It's not out of the ordinary for modern vehicles to reach 200,000 miles without breaking a sweat. As a result, many automakers are offering factory warranties that last for nearly a decade or 100,000 miles, whichever comes first. Nevertheless, many warranty providers are reluctant to offer extended automotive warranties beyond the 200,000-mile mark. In some cases, you can expect your warranty provider to offer coverage up to 12 years or 150,000 miles.
The reason for this usually comes down to the escalating cost of repairs as the vehicle ages. Many major vehicle components, including the engine and transmission, tend to require expensive repairs after the 150,000-mile mark. Although many warranty providers are more than willing to handle certain repair claims, there's also a limit to what providers are willing to pay out on a regular basis.
Of course, there are many companies that offer longer warranty terms. Some companies may even offer warranties that cover used vehicles until the 200,000-mile mark. If you're in the market for an extended automotive warranty, you should compare the term lengths of each prospective warranty to see which suits your vehicle's needs.
Alternatives to Consider
There are also plenty of vehicles on the role that have racked up more than 200,000 miles on the odometer. If your vehicle falls under this unique category, you may want to consider the options below:
- Find a warranty provider with a higher vehicle age or mileage limit - In a few rare cases, you may be able to find an extended vehicle warranty that specifically caters to vehicles that are much older or have accumulated more miles than the norm. These warranties may provide only limited coverage for the engine and transmission, for example.
- Start your own savings account for automotive repairs - If you can't find an extended warranty at all, then the money that would have gone towards your warranty should instead go into a rainy day fund for automotive repairs. This way, you'll still be able to tackle those unexpected breakdowns without putting a significant dent in your wallet.
For more information, contact an insurance agency, such as NWVA.
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