• Cost Analysis: Certified Pre Owned Warranty vs. Used Car Warranty

    In order to understand the difference between a certified pre-owned warranty and a used car warranty, you need to first understand the difference between these two vehicle categories. When shopping for a used car, it’s generally advantageous to purchase a certified pre-owned vehicle, as it removes an element of doubt regarding the condition of the vehicle. It’s also important to obtain a cost analysis of a certified pre-owned warranty versus a used car warranty, before you make your purchase.

    Certified Pre-Owned Vehicles vs. Used Cars

    Certified pre-owned vehicles have to pass stringent inspections to meet manufacturer standards. Any repairs required are carried out by certified technicians so that the vehicle can be termed as a certified pre-owned car. In addition, these vehicles in general are driven very few miles. Used cars on the other hand may be purchased from private sellers or dealers. As a buyer, you won’t be able to determine if the used vehicle you’re purchasing is in optimal working condition or not. This brings the used car warranty into the picture. When purchasing a used car warranty, you will have to negotiate the extended warranty price with the dealer, and you won’t be able to determine what coverage is ideal for your used car purchase.

    Certified Pre-Owned Programs

    Certified pre-owned vehicles are covered by a certified pre-owned program. Thus if the vehicle already has the original manufacturer warranty, you’re offered this coverage, along with an extended manufacturer warranty. Manufacturer warranties are always better than third party warranties as your vehicle will be repaired by trained technicians. If you purchase a used car, you will be able to buy a cheap auto warranty from any independent auto warranty company. However, their policies often have limited coverage or difficult claims filing procedures that don’t benefit you as well as pre-owned coverage.


    If the certified pre-owned program includes a deductible amount, you will only have to pay this amount, without reimbursing the auto repair facility for the entire bill. If you purchase a third party used car warranty, you may be charged every deductible amount (per visit or per repair) along with the total cost of repairs stated on the bill. Most used car warranties require you to make the auto repair payments up front and send a receipt to the car warranty company to claim the amount. In this case you could also stand a chance of having your claim denied. Each certified pre-owned program charges a different deductible. These amounts vary from $85 to $100. Some programs may charge you no deductible at all. Used car warranty deductibles on the other hand could range from $50 to $500.

    Reputation of the Auto Warranty Company

    You need to take into consideration the reliability of the auto warranty company you’re dealing with. If you’ve purchased a cheap warranty plan, you may not only have your claims denied on some pretext or the other, but you could also be charged several hidden fees that increase your out of pocket pay. If you purchase pre-owned coverage, you’re assured that the repairs and services will be carried out as per the terms and conditions listed on the contract. The cost of additional manufacturer warranty will be included in the purchase price of the vehicle.

    You need to weigh the pros and cons and determine which auto warranty matches your budget and personal needs. Although buying a third party warranty is much cheaper than a factory warranty, you may end up paying more money in the long run if the plan doesn’t cover certain repairs or if you have to pay large deductibles.