Should I Buy An Extended Car Warranty
Should You Buy A Used Car From An Authorized Pre-Owned Car Dealer?
Friends don't let friends get ripped off. Are you looking to purchase a used car in the near future, and are not quite sure whether to buy from a person selling their own car, or from a used car dealership? When buying from a dealership, you are getting the remainder of the new car warranty, which is non-transferable when buying a car from a private citizen. But, at the same time, by the time you drive off of the dealer's lot in your new, but slightly used car, it has depreciated by 15 to 20 percent in value.
When purchasing a used car as a private sale, as in buying it from someone with a personal advertisement online or in a newspaper, the car does not depreciate in value as soon as you buy it, it may even be worth more. It all depends upon how much you paid for the vehicle, and what it is worth in the Kelly Blue Book of used car values, as that is the price that the government will tax the sale at, and the cost the insurance company will evaluate the car at. Other than losing value once you leave the dealer's lot, you will also be paying more for a certified pre-owned car, as opposed to buying the same car as a private sale. The dealers will show, and give, a lot less leeway in the final price of the vehicle, whereas the private seller may just really want to get rid of the car, and let it go for less, just to get it out of the garage. Private sellers do not charge fees for every little thing that the car goes through before being sold, and the dealers will charge you the cost of gas, for driving the car from the lot to the car wash bay and back. Buying certified pre-owned cars, you will have to pay for the car wash, inspections, rustproofing and/or rustproof checking, and anything else that the dealers can think of, in order to jack the price of the car as high as possible, all the while trying to convince you that you are getting the deal of a lifetime. Just don't tell his boss. No, the truth is that you could pay 20 percent less than the sticker price, and the dealership will still be making money. The salesman, not so much. A dealer will charge for freight, even though the car was purchased as a trade-in, from that little old lady from Pasadena who only drove the car to and from church and church-related functions. They also have overhead to pay for office space, utilities, salaries, personal cars for the owners and productive sales staff, advertising and taxes. And, of course, they don't sell used cars just because that's what they always wanted to do; they still need to show a decent profit. When buying from a private seller, they are usually just happy to get an offer, and will most likely not just let you walk away over a thousand dollar difference. However, the major con of not buying a certified pre-owned car is that the service contract, or extended warranty, is non-transferable between two citizens. Warranties can only be transferred when sold through a certified used-car dealership. With all of this in mind, and with checking the car's CARFAX report, you should be able to judge whether the extra costs related with buying a car from a certified pre-owned car dealership are worth the benefits. If the car is in great shape, and the CARFAX report is positive, then buying it from a non-certified pre-owned car sales dealer can be a very positive deal. Until the head gasket blows on your way home with your new, used car. Drive safe. Drive informed. By Marc Phillippe Babineau - A Maritimer by birth and soul, I worked as a Technical Writer and Trainer for 13 years in the Aerospace industry. I also worked contract as a Technical Writer and Trainer for 4 years, mainly for the Departm...
Should I buy an extended car warranty?
Are extended car warranties worth it. I'm buying a new VW GTI and don't know if its worth $2000 for a longer warranty. I've owned 2 GTI's and haven't had any problems.
Get the answers...
Should I buy an extended car warranty?
I know that this is a very subjective question but I wanted to get everyone's input regardless. I'm looking at purchasing a used 2011 Hyundai Sonata with around 10,000 miles on it. Hyundai's factory warranty is for 5 yrs or 60,000 miles (powertrain is 10yr 100,000). I've never purchased a car without buying an extended warranty, but I've never bought a car with such a lengthy factory warranty either.
Normally I would rather pay a little more for peace of mind, but my wife and I don't see this vehicle as a long-term vehicle (at least right now).
I'm definitely leaning towards not purchasing it (and taking advantage of the long factory warranty), but wanted to get other people's input. Thanks!
Get the answers...
Next page: Arizona Used Car Warranty
Bookmark/Share This Page:
|
|
|
|
Should I Buy An Extended Car Warranty News
Schumer Urges Inquiry of Companies Behind Bogus Auto Warranty Calls
11 May 2009 at 12:00am Senator Charles E. Schumer has never struggled to find a reason to hold a news conference on a Sunday. But the inspiration for the one on Mother's Day arrived unexpectedly, when the senator's cellphone rang during a health care meeting on Capitol Hill last week. ''You are still eligible to reactivate warranty coverage,'' said the recorded voice on...Read more...
