Buying a Used Car - Is A Warranty Worth It Or Not?

When buying a Used Car, is a warranty worth it or not?

I've bought quite a few cars over the years and in some cases they came with a warranty. In only one case have I ever had cause to claim on that warranty and even then the repair was very small that I could have sorted myself if I hadn't had the warranty available.

When buying a Used Car is a warranty worth it or not?

The cost of a used car warranty can vary hugely but seem to be up to around £1000 depending on the model of car. In most cases although described as a "warranty" you are actually buying an insurance policy - mechanical breakdown insurance - and like most insurances policies there are exclusions to it.

Often wear and tear items are excluded which covers things like the clutch that could fail on an older car and could be expensive to replace. If such items are excluded then you wonder what benefit the warranty could have for most car buyers. The answer is not much - the insurance company need to make a profit so they aren't going to sell a policy that doesn't make them money.

Despite what you might be told when considering a warranty, cars are pretty reliable overall. Of course they need routine and regular maintenance but again those items wouldn't be covered anyway.

My personal view is that used car warranties are not worth it and it is far better to "self insure" by putting any warranty money into your savings so it's available if you have a fault on your car to pay for.