When you buy a new car, there are usually a number of manufacturer’s warranties that come with the vehicle. You also may be able to purchase an extended warranty, which will cover any failures or recalls in the future. When you buy used cars in sacramento, it is not unusual for the auto dealer to offer to provide some type of insurance on your investment if something goes wrong.
Here are tips to help you understand the benefits of each type of warranty and insurance.
Manufacturer’s warranty
The best warranty because it protects you against any issues that are a result of a manufacturing defect in the vehicle. It also covers mechanical failures, but is not designed to cover damage by wear and tear or accident.
Extended warranty
Some used cars come with an extended warranty. It will provide coverage for mechanical issues and any associated repairs beyond the factory warranty period. This coverage is important because it helps protect you from unforeseen mechanical problems that may be covered under a manufacturer’s warranty.
Dealer-provided insurance
Some car dealers offer to provide you with an insurance policy through the dealer’s insurance company to protect you in case damage occurs during a repair process or other problem arises after the sale of your vehicle. The insurance coverage will cover any mechanical or other type of issues covered under the manufacturer’s warranty.
Vehicle protection package
This term is used to describe the dealer’s warranty insurance and it will provide coverage for all types of issues that are covered in a manufacturer’s warranty or extended warranty. The vehicle protection package is intended to be supplemental coverage, which means it is not meant to replace a manufacturer’s warranty or extended warranty. It may be particularly important if you have purchased your car from an independent dealer rather than a large national car dealership chain.
Used car coverage options
By reviewing your warranty and insurance options before you buy your car, you can ensure your investment is protected. While it is not uncommon to purchase a used vehicle without an extended warranty or insurance coverage, these options are particularly important if you are purchasing a car that is 10 years old or older.
