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Buying an extended auto warranty when purchasing Craigslist used cars – Is a vehicle warranty worth purchasing when buying Craigslist cars?

There’s nothing more frightening than the idea of purchasing a used vehicle from Craigslist cars, only to find out that the vehicle has serious mechanical issues and requires hundreds of dollars in repair within the first few months of ownership. One way to mitigate your used car buying anxiety is to purchase an extended auto warranty. With an extended auto warranty, you can pay as little as a few dollars per month and have your vehicle covered for major mechanical repairs. By purchasing a vehicle with high mileage, and extended vehicle warranty may be a good idea.

How do you determine whether or not it is a good idea to purchase a vehicle warranty? The answer to this question greatly depends on several factors. One of the largest factors is the value of your vehicle. While making a decision as to whether or not a vehicle warranty is worth purchasing when buying Craigslist used cars, you must weigh the annual cost of carrying a vehicle warranty policy against the value of your vehicle. If you purchased a vehicle that is worth say $2000, and the annual cost of a vehicle warranty is $800, you may want to think twice about purchasing an extended vehicle warranty. In another example, if the vehicle is worth $5000 and you can purchase a vehicle warranty for less than $500 per year, it may be worth looking into.

When shopping around for an extended vehicle warranty, you will want to make sure that you read the fine print and find out exactly what your policy covers and how much you will pay. Do not forget, the deductible may be extremely high, making purchasing an extended warranty a bad choice. Here are a few pros and cons of purchasing an extended vehicle warranty:

Pros

–     Avoiding paying high cost associated with major repairs

–     peace of mind knowing that at any moment your vehicle is covered and it will not cost you hundreds of dollars at one time

–     makes purchasing a vehicle on Craigslist and easier decision because you do not have to be concerned with purchasing a vehicle that is prone to repair

Cons

–     Vehicle warranties can be an unnecessary monthly expense that can cost you several hundred dollars per year

–     you may never use your vehicle warranty and lose all the money that you invest

–     many vehicle warranties require a deductible of several hundred dollars. This can still be a lot of money out of pocket for many people.

When it comes to deciding whether or not an extended vehicle warranty is a good choice, you’ll have to weigh the pros and cons along with the annual cost of the policy to make a decision. For some, a vehicle warranty is a good choice while for others it may be an unnecessary vehicle expense. When buying Craigslist used cars, a vehicle warranty can provide peace of mind knowing that you will not have to worry about a vehicle that is going to break down on you and cost you a lot of money. Purchasing Craigslist cars can be a great way to save money by eliminating a monthly car payment. Weigh all of your options before making a decision and remember that a vehicle warranty may be a good choice for some but not for others.

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