Are Used Car Warranties Worth the Money?

Jan 2, 2020

Are Used Car Warranties Worth the Money?

If you have reached the end of the warranty supplied by your car manufacturer or you recently bought a used car, there are now a wealth of third-party warranties that all claim to do the same thing. These warranties promise to give you a financial peace of mind by taking care of the garage bill when you face any issues with your car. But are these used car warranties worth it?

What will a used car warranty cover?

The best-used car warranties will pay for repair or replacement to all mechanical and electrical components that unexpectedly fail. This will include the most expensive parts like your gearbox or engine, and even the car’s computer.

Other potentially costly parts such as airbags and dashboard screens may be partly covered by the most comprehensive warranties. Ideally, these parts are going to be replaced at full cost to the warranty provider, minus any excess that you agreed to pay at the start of the policy.

Be careful when choosing a warranty as some companies apply betterment, which requires you to pay a proportion of the cost in situations where a new part is going to improve your car’s condition or value.

Used car warranty costs

According to research conducted by, even the cheapest warranty was over £100 more expensive than the average repair cost. At the other end of the scale, some used car warranties cost more than 10 times the average repair bill. Therefore, you always need to consider the small print. Cheap warranties are cheap for a reason, as it puts strict limits on labour costs unless you use a garage approved by your policy provider. Don’t be lured in by a cheap deal that gets you out of paying your repair fees unexpectedly, as they come with a lengthy list of terms and conditions.

Are extended car warranties worth it for used cars?

We understand that it’s difficult to even justify the cost of the cheapest car warranty when you consider the different exclusions, premiums and low average expense of yearly repairs. A car going in for repair can be a stressful time for some people, and arguing over what constitutes wear and tear with your warranty provider to try and get your garage costs reimbursed is just going to add to that.

Why not set some money aside every year that will only be used to cover any repairs you may need, but if your heart is set on getting an extended warranty be sure to discuss this with your manufacturer, as they tend to not have as many exclusions.

Share this post

Car Service

Car Service

Need a basic, interim or full service? Compare quotes.

Get Quotes