Here are some things to consider when buying a used car warranty:
When considering a used car, you should probably get it inspected by a certified mechanic in order to gauge its condition. This will not guarantee anything, but at the very least if the car is ready to fall apart, you will have some idea of what is coming and know what type of coverage you are likely to need.
Take into consideration the model of the car. How reliable is it? Are there any common problems with that particular model? What do other people have to say about the same model?
If you already know you want the used car warranty, it is important to shop around first. Warranties can be backed by a manufacturer, dealerships or independent companies. Manufacturer warranties almost always offer better coverage: they are also more expensive. Independent companies might be cheaper, but the services they provide and the terms of coverage may not be as complete as a manufacturer backed extended used warranty.
Different companies might use the same language in a warranty contract, but that does not mean they're all talking about the same things. Terms like "bumper-to-bumper" and "wear-and-tear" can mean different things from dealership to dealership. In fact, "Bumper-to-bumper" is inherently misleading, because no contract truly covers every part on the car. In fact, ironically, the bumpers are not actually covered by most warranties. Ask the dealership to explicitly spell out precisely what everything in the contract means.
Price differences between companies can vary dramatically. The amount of time/miles traveled/covered can vary as well.
Have the dealership put in writing what is covered under the used car warranty and what is not. Then have them detail what will void the contract. Some warranty contracts, and basically all manufacturer contracts, require that you have the car serviced at specific dealerships.
Deductibles, if required, should not cost as much as it will take for you to repair a car in the event of a mechanical failure. Warranties can be a huge profit center for any company that sells them (figure at least a 100 percent markup). If they ask for a hefty deductible on top of that, then a used car warranty is not worth it.
Perks are frequently thrown in to sweeten the deal, such as free rental, towing and roadside assistance. Nonetheless, you are not shopping for a used car warranty for the free perks. They could be a tipping factor for you though