#7 Car DIY: Get Cheaper Extended Warranties on Used Cars

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In this Series of How-To posts, we’ll be covering knowing when to do something, how to do something and our own hack to try at your own risk. A big thanks to Tire Kickers, our sponsor and consultants on all things mechanical. They can be found on Facebook, or check out their auto health & safety advice.

(Note: this is the best information we could gather from our research and consulting our automotive advisors, but at the end of the day, our purpose is to entertain and inform. Don’t let us shame you into taking on something if you don’t feel qualified to do it. Trust your gut.)

Know When

Your new car warranty probably ran out at 3 years or 36,000 miles. It’s a good idea to purchase an extended warranty after that time, provided you can get it cheaper than through a dealership.

Your dad probably drummed it into your head, “Never buy a used car warranty…” We’ll dad was right—mostly. When you purchase a vehicle you have an opportunity to roll the cost of a warranty into the loan for the vehicle. It’s like buying the fridge with the house. It’s easy on the pocketbook compared to going separately to buy the exact fridge you want, until you realize you’re paying for the fridge for the next 30 years.

We’re no financial advisors so do what you think is best. BUT the real reason to avoid buying the warranties are these. You are paying a heavy markup to the guy/gal who is already making a commission on selling you a car. So you’re paying more and you are paying someone for insurance against them screwing you over. “Here, this is a good car, but in case it’s not, why don’t you pay us extra to fix it.” It’s just not a sensible thing to do.

Know How:

If you are interested in a warranty on your used car, see our hack for a link to purchase a used car warranty independent of a dealership.


The standard markup on a warranty is at least $1,000. Here’s a better option. Call around to pre-purchase inspection services and find one that can sell an extended warranty. Warranty companies love to sell through them because these are the guys helping you establish the quality and value of the vehicle. You’re less likely to need one if an inspector is willing to sell it to you and since they aren’t salesmen, they offer them at a much lower cost. Here’s a link to one such inspection service.

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