Used Car Extended Warranty: "Certified" Is No Substitute - Part 1

Thinking about a used car extended warranty? Nervous about what's under the hood? Used car dealers are feeling your pain all the way to the bank. In an ironic twist, "pre-owned vehicle" dealers have found a way to profit from their bad reputation. No, they're not just selling overpriced used car extended warranties anymore. They're charging a 10%-25% markup on used cars "certified" (by them) not to be pieces of junk. The accompanying "certified" used car warranties in fact usually carry much less protection than the best used car warranties, which you can buy yourself online. Who needs a used car warranty if your vehicle is a "certified" machine?

But even paying 10%-25% more won't eliminate risk. Good extended warranties for used cars are necessary, "certified" or not. In some cases, a half-hearted inspection means the certification may not be worth the paper it's written on. Used car problems often only appear months or years after purchase. That's why even for mint used cars, used car extended warranties are essential.

Worse, "certified" used cars don't always come with any extended used car warranty coverage. Often, they may come only with partial extended warranty coverage. When a "certified" used car warranty is included, it usually has much less coverage than a new car warranty. Even most standard pre-owned vehicle extended warranties offer much more protection than most "certified" used car warranties.

You can almost always do better on your own. An independent inspection and a used car extended warranty provide better peace of mind, often at a lower price.

Do you want to find out what you should be paying? Get an Auto Warranty Quote online!

Certified Used Car Inspection: Used Car Extended Warranties Still Needed

The cornerstone of a "certified" used car program is the supposedly super-thorough inspection. Do such inspections make extended warranties for used cars unnecessary? There are good reasons to think that the inspection does not replace used car extended warranty coverage one bit.

• Are inspections really added value? Don't you wonder why dealers aren't inspecting all their cars before taking delivery themselves? Car dealers aren't idiots, at least not with cars. Anyone who's had to haggle over a trade-in knows that. The big question is whether the dealership will disclose everything it knows. Trust is still an issue with "certified" cars. Put your trust in an extended used car warranty instead.

• Certified by whom? Think about it: the same people who are trying to sell you the car are also "certifying" it. Yes, you read right: the "certification" is usually done by the dealership selling the car. If there's any manufacturer oversight, it's often just an occasional inspection of the dealer's inspection. Given dealers' conflict of interest in certifying cars they are selling, the best used car warranties are far more reliable than the best dealers' inspections.

• Duplicate inspection. You should have any used car, "certified" or not, thoroughly inspected by an independent mechanic. You're up against used car dealers. Do not give up your first line of defense.

• Limits of inspections. No inspection in the world can foresee every possible problem. Oftentimes, something that breaks a few months after purchase really was fine when the car was sold. When--not if--something gives out, you'd better have a used car extended warranty.

Continued: Part 2 Examining "Certified"
Used Car Extended Warranty Coverage

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