Category Archives: Used Cars

Man washing a car

Just Bought a Used Car? Here’s How to Clean it Like a Pro!

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Congratulations on your new (to you) car! Buying a used car is an exciting venture, but it often comes with the need to give your new ride a thorough cleaning to make it truly feel like yours. Whether it’s a family sedan, a rugged SUV or a sleek sports car, taking the time to detail it inside and out not only enhances your driving experience but can also maintain the vehicle’s value. Here’s a comprehensive guide on how to clean your newly purchased used car like a professional, ensuring it looks and feels fresh off the lot.

Exterior Cleaning

Start with a wash. Use a high-quality car shampoo and a microfiber wash mitt. Start from the top and work your way down, ensuring that you rinse the mitt frequently to avoid scratching the paint with debris. Next, tackle the wheels. Wheels can accumulate tough grime and brake dust. Use a wheel cleaner and a dedicated brush to get into all the nooks and crannies. Finally, dry your vehicle with a clean microfiber towel to prevent water spots. 

If you want your car to shine, you can apply a high-quality car polish with a dual-action polisher. Apply the polish using circular motions to ensure an even application. Then, apply a protective layer of carnauba wax or a synthetic sealant. This not only adds shine but also protects the paint from UV rays and contaminants.

Interior Cleaning

Since the car was previously owned, you’ll want to clean the interior, too. Once any trash or personal items have been removed, use a powerful vacuum cleaner to get rid of dust, dirt and crumbs from the seats, carpets and hard-to-reach areas. Don’t forget the trunk!

Use an appropriate cleaner for your type of upholstery—leather or fabric. For leather, use a leather cleaner and conditioner to keep it supple. For fabric seats, a fabric cleaner and a brush can remove most stains and odors.

Now it’s time to wipe down hard surfaces. Use an all-purpose cleaner and microfiber cloths to clean the dashboard, center console, door panels and any other hard surfaces. A streak-free glass cleaner and a microfiber towel is sufficient for cleaning the windows. And of course, you can add a car air freshener to reduce odors and make your vehicle smell new! 

Finishing Touches

Replacing the air filters can significantly freshen up your car’s interior air. Also check and refresh fluids—windshield washer fluid, brake fluid, etc. This is good practice when taking over a new vehicle. If you had the car checked out by a mechanic, follow their suggestions on any other steps you should take to ensure your vehicle is safe to drive. 

Cleaning your newly purchased used car thoroughly not only improves its aesthetic appeal but also makes it a healthier, more pleasant environment for you and your passengers. By following these detailed steps, you can enjoy the pride of ownership and the satisfaction of driving a car that looks and feels brand new. To find a vehicle that fits your needs and budget, visit RepoFinder.com today! 

getting car ready to sell

How to Get Your Car Ready to Sell

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Selling your car can be a rewarding experience, especially if you have your sights set on something new. The money you get from your current vehicle can help you pay for your new car, or at least be put towards a down payment and title/registration fees. However, preparing your vehicle for sale is a bit more difficult, as you’ll need to attract potential buyers and secure a fair deal. 

Whether you’re considering a new, used or repossessed vehicle, let us walk you through the essential steps to getting your car ready to sell. From detailing and maintenance to paperwork and marketing strategies, every detail matters! 

Clean and Detail Your Car 

First impressions matter, and a clean, well-maintained car is more likely to capture the attention of potential buyers. Give your vehicle a thorough cleaning both inside and out. This may include washing and waxing the exterior, cleaning the interior, vacuuming carpets and addressing any odors. 

Some sellers spend the money to get their car detailed, so you might want to look into this if your car is dirty or has odors. Car detailing prices vary depending on your location, the size of your vehicle and the condition of your vehicle, but you can expect to spend between $50 and $300. 

Conduct Necessary Repairs 

Addressing minor repairs and maintenance issues can significantly enhance your car’s appeal. From changing fluids and replacing worn-out parts to fixing dents and scratches, a well-maintained car signals to buyers that it has been cared for and is in good condition. 

You don’t need to go overboard with repairs since you will be selling the vehicle as-is, but it’s still important to address major issues. And, make sure that you are honest with potential buyers about repairs that will need to be made in the near future. 

Gather and Organize Maintenance Records 

Buyers appreciate transparency when it comes to a vehicle’s maintenance history. Compile and organize all relevant maintenance records, including receipts for recent repairs, oil changes and other services. Presenting a comprehensive history can build trust with potential buyers and allow them to pick up with the appropriate maintenance. 

Determine the Market Value 

Research the current market value of your car to establish a competitive and realistic selling price. Online tools and vehicle valuation websites can provide insights into the fair market value based on factors such as make, model, year, mileage and overall condition. Be willing to negotiate as well. 

Take High-Quality Photos 

Quality photos are essential for creating an attractive online listing. Provide potential buyers with clear images that showcase your car’s exterior, interior and key features. A well-photographed listing can significantly increase the chances of generating interest. Most people do their car shopping online and rely on pictures and videos. 

Create a Compelling Listing 

Craft a detailed and honest description of your car for the online listing. Highlight key features, recent maintenance and any unique selling points. Be transparent about the vehicle’s condition and any issues it may have. A well-written listing will not only attract serious buyers but also the right buyers. 

Advertise Effectively 

Choose the right platforms to advertise your car. Online classifieds, automotive marketplaces and social media can be effective channels. Many people start with social media because it’s free and can reach a wide range of people, particularly in your local area. Be sure to include a compelling headline, detailed description and high-quality photos.

Get a Pre-Sale Inspection 

Consider getting a pre-sale inspection from a trusted mechanic. This not only provides potential buyers with confidence in the vehicle’s condition but also allows you to address any last-minute issues that may arise during the selling process.

Prepare Necessary Documents 

Gather all necessary paperwork, including the title, maintenance records and a bill of sale. Ensure that you have all required documents ready for a smooth and legal transaction. Check with your local Department of Motor Vehicles (DMV) for specific requirements in your area.

Collect Your Funds 

For safety reasons, we recommend completing a car transaction in a public place. Using cash is the most straightforward way to handle the transaction, but it can also be risky. Also, keep in mind that the IRS requires disclosure when sales top $10,000. 

Other ways to accept money for your vehicle include a bank transfer, certified check, cashier’s check or digital payment service. Once you have this money, you can use it to help pay for your next vehicle! 

Shop for Repossessed Vehicles in Your Area 

By following these steps, you can ensure that your car is well-prepared for sale, attracting serious buyers and facilitating a smooth selling process. And, once you sell your vehicle, you can start shopping for a new one! 

At RepoFinder, you can buy repossessions directly from local banks and credit unions. Repo vehicles are priced to sell, and banks and credit unions are highly motivated, which means you may be able to negotiate an even lower offer. Visit us today and browse our featured vehicles! 

person looking at car reports online

Carfax Red Flags: What to Look for in the Report

When shopping for a used or repossessed car, arming yourself with information about a vehicle’s history is paramount. Carfax reports serve as a crucial tool, offering insights into a car’s past, including accidents, maintenance records and ownership history. However, not all reports are spotless, and understanding how to identify potential red flags within a Carfax report is vital. 

Here’s a guide on what to look for when deciphering Carfax red flags.

Reported Accidents

Carfax may indicate if a vehicle has been in accidents. Pay attention to the severity and the extent of damage reported. Multiple accidents or instances of severe damage could raise concerns about the car’s structural integrity.

Title Issues

Cars declared salvage or rebuilt have undergone significant damage and subsequent repairs. Be cautious, as these vehicles might have hidden issues, compromised safety and lower resale value. Furthermore, they can be more costly to finance, insure and repair, which means the initial savings won’t be worth it in the long run. 

Odometer Discrepancies

Check for irregularities in recorded mileage by comparing the numbers in the report with the current odometer readings. An inconsistent or rolled-back odometer reading could indicate tampering and potential odometer fraud. Also, make sure the miles the vehicle has are logical. The average person drives 13,500 miles per year, or more than 1,000 miles per month. 

Service and Maintenance Records

Lack of maintenance records might indicate neglected upkeep, potentially leading to unforeseen mechanical problems. Conversely, a well-documented maintenance history is a positive indicator of responsible ownership. Repossessed vehicles, in particular, are not always well taken care of, as the original owner was having trouble making their payments. Pay especially close attention to vehicle history reports if you’re buying a repo car. 

Number of Owners and Usage

A car that has changed hands numerous times within a short period might suggest underlying issues or dissatisfaction among previous owners. Also watch for cars that were previously used as fleet vehicles or rentals, as they can be particularly vulnerable to heavy wear and tear. 

Recall Information

Be aware of any pending recalls that haven’t been addressed. These unresolved issues might pose safety risks or signal potential problems that need attention. Again, if the previous owner was neglecting their vehicle, chances are, they didn’t address any recalls. 

Structural Damage

Reports of structural or frame damage are significant red flags. This damage is similar to having a broken skeleton! Such damage can compromise the vehicle’s safety and structural integrity, impacting its long-term reliability. Additionally, cars affected by floods can suffer from electrical issues, corrosion and long-term damage. Look for any indication of flood damage in the report.

Additional Considerations

A car with existing liens could lead to complications in transferring ownership. It’s best to stay away from these vehicles to avoid future surprises. Additionally, reports of failed emissions tests might signal underlying mechanical issues affecting the vehicle’s environmental compliance.

Final Thoughts

While Carfax reports offer valuable insights, they might not always reveal every detail about a vehicle’s history. Combine the report’s information with a comprehensive inspection by a trusted mechanic to thoroughly evaluate the car’s condition. 

RepoFinder is the largest bank repo list in America. Browse the repossessions we have available – there are banks and lenders in all 50 states selling their repo inventory. They are highly motivated to sell, which means you can get a great vehicle at a fair price. But, as always, be an informed buyer, as cars are a significant investment!  

saving money for car repairs

Putting Away Money for Car Emergencies

Owning a car provides convenience and freedom, but it also comes with responsibilities, especially when it comes to unexpected expenses. Car emergencies can happen to anyone, from a sudden breakdown on the highway to unexpected repairs that can put a dent in your budget. That’s why it’s crucial to have a financial safety net in place to handle these unforeseen situations. 

Let’s discuss the importance of putting away money for car emergencies and how it can provide you with the ultimate peace of mind.

Expect the Unexpected

Cars, no matter how well-maintained, can surprise you with unexpected issues. A flat tire, a malfunctioning engine or a broken transmission can occur without warning. Having money set aside specifically for car emergencies ensures that you are financially prepared when these situations arise, preventing you from dipping into your regular budget or, worse, going into debt.

Create a Car Emergency Fund

Start by creating a separate savings account specifically designated for car emergencies. Determine a monthly or bi-monthly amount you can comfortably set aside. Even if it’s a small sum, consistent contributions can add up over time. Treat this fund as non-negotiable, just like paying your bills, to ensure it grows steadily.

Budget for Regular Maintenance

Preventative maintenance is key to avoiding many car emergencies. Regular oil changes, tire rotations and check-ups can help you identify potential issues before they become major problems. Budget for these maintenance tasks separately and stick to the schedule. By keeping your car in good condition, you reduce the risk of unexpected breakdowns.

Avoid the Debt Trap

Relying on credit cards or loans to cover car repairs can lead to a cycle of debt that’s hard to break. By having an emergency fund, you can handle repairs or unexpected expenses without resorting to borrowing, saving yourself from high-interest rates and long-term financial stress.

Be Prepared for Various Scenarios

Car emergencies can vary in cost and complexity. Your emergency fund should be able to cover a range of situations, from minor repairs to major replacements. Research the average costs of common car repairs in your area to have a realistic target for your emergency fund.

Regularly Reassess and Replenish

Life circumstances change, and so should your emergency fund goals. As your income increases or your expenses decrease, consider increasing your contributions to your car emergency fund. Additionally, if you ever need to use the fund for a car emergency, make it a priority to replenish the amount as soon as possible.

Save Money on Vehicles with RepoFinder

Having a dedicated fund for car emergencies is financially smart. By planning ahead, budgeting for regular maintenance and being prepared for unexpected scenarios, you can navigate car emergencies without compromising your financial stability. 

RepoFinder.com has a great selection of repo cars, trucks and SUVs being sold by lenders and credit unions. These vehicles were taken from their owners for defaulting on their loans, and they are now being sold at highly discounted prices. Repos are a great way to save money while being able to put more money away for maintenance and repairs. Find your dream car today! 

child sitting in back of minivan

Tips for Choosing a Safe, Affordable Family Vehicle

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Selecting a family vehicle is a decision that involves careful consideration of various factors, such as safety, affordability, comfort and practicality. Finding an affordable SUV or minivan that meets all of your needs can be tricky, but with a little research, plenty of patience and an open mind, you can be successful. 

Let’s explore essential tips to guide you in choosing a safe and affordable family vehicle that meets your needs and gives you peace of mind on the road.

Prioritize Safety Features

When it comes to family vehicles, safety should always be your top priority. Look for cars equipped with advanced safety features such as lane departure warning, adaptive cruise control, automotive breaking, traction control and electronic stability control. Additionally, consider vehicles with high safety ratings from reputable organizations like the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA). 

Evaluate Crash Test Ratings

Before making a decision, research crash test ratings for the vehicles you’re considering. Reliable sources such as IIHS and NHTSA conduct rigorous crash tests and provide detailed reports on various car models. Opt for vehicles with excellent crash test scores, ensuring that your family is well-protected in the event of an accident.

Consider Fuel Efficiency

Family vehicles often cover a lot of miles, from school runs to family vacations. Choosing a fuel-efficient car can save you money in the long run. Look for vehicles with good gas mileage or consider hybrid or electric options, which not only reduce your fuel costs but also contribute to a cleaner environment.

Assess Interior Space and Comfort

Family vehicles need to have ample interior space and provide comfort for everyone on board. Consider the number of passengers the vehicle can comfortably accommodate, as well as the availability of features like adjustable seats, climate control and entertainment systems to keep everyone content during longer trips – or when sitting in the school pickup line.

Research Reliability and Maintenance Costs

Look for vehicles with a reputation for reliability. Reliable cars often have lower maintenance costs, saving you money on repairs in the long term. Research the average maintenance and repair costs for the models you’re interested in to ensure they fit your budget.

Explore Insurance Costs

The cost of insuring a vehicle can vary significantly based on the make and model. Before finalizing your decision, obtain insurance quotes for the vehicles you’re considering. This will give you a clear understanding of the ongoing expenses associated with your family car.

Find Your Safe, Affordable Family Vehicle on RepoFinder

Choosing a safe and affordable family vehicle involves careful research and consideration of various factors. By prioritizing the above features, you can make an informed decision that ensures the safety and happiness of your family on the road. To shop for affordable family vehicles that are owned by banks and credit unions, visit RepoFinder.com today. 

reading used car reports online

How to Read a Used Car History Report

Buying a used car can be a cost-effective decision. However, it’s essential to gather as much information as possible about the vehicle’s history to make an informed purchase. A used car history report is a valuable tool that provides crucial insights into a vehicle’s past, including accidents, maintenance records and ownership history. 

In this blog post, we will guide you through the process of reading a used car history report, equipping you with the knowledge to make a confident decision.

Obtain a Reliable History Report

Start by obtaining a comprehensive history report from a reputable source. Several online platforms offer paid services that compile information from various databases, including government records, insurance companies and auto auctions. Ensure the report is up-to-date, accurate and provides a detailed overview of the car’s history.

Check Vehicle Identification Number (VIN)

Locate the Vehicle Identification Number (VIN), a unique identifier for each vehicle, and ensure it matches the VIN listed on the history report. This step confirms that the report corresponds to the specific vehicle you are interested in purchasing.

Ownership History

Examine the ownership history section of the report. It should provide details about the number of previous owners and the length of time the vehicle was registered under each owner. A car that has had multiple owners in a short period may indicate potential issues, while a long-term ownership history can be a positive sign.

Accident History

Look for any reported accidents or damage in the history report. It should outline the severity of accidents, including minor fender benders or major collisions. Pay attention to the extent of damage and whether the vehicle was deemed salvage or rebuilt. A vehicle with a significant accident history may have underlying structural or mechanical issues that could affect its future performance and value.

Maintenance and Service Records

Review the maintenance and service records section of the report. It should provide details about routine maintenance, repairs and any recalls associated with the vehicle. A well-maintained car with regular service records indicates responsible ownership and suggests that the vehicle has been cared for properly.

Title and Ownership Transfers

Check for any issues related to the vehicle’s title and ownership transfers. The report should indicate if the car has a clean title, indicating it has not been salvaged, flooded or stolen. It should also mention any liens or outstanding financial obligations associated with the vehicle. A clear title ensures a smoother transfer of ownership and reduces the risk of legal complications.

Odometer Verification

The history report should also include an odometer verification section. This verifies the accuracy of the vehicle’s mileage and helps identify potential odometer tampering. A significant difference between the reported mileage and the vehicle’s physical condition may indicate a red flag.

Additional Considerations

Pay attention to any other notable information in the report, such as recalls, lemon law buybacks or issues with the vehicle’s emissions. These details can impact the car’s value, safety and overall desirability.

Reading a used car history report is an essential step in the car-buying process. It provides valuable insights into a vehicle’s past, allowing you to make an informed decision and mitigate potential risks. To browse repossessed vehicles directly from banks and lenders, visit RepoFinder.com today. 

used cars for less

Best Used Vehicles for $15K or Under

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Buying a used car can be a smart financial decision, especially if you’re on a tight budget. With a budget of $15,000, there are plenty of great options available – even in this market. To find the best deals on used cars, open your search to repossessed cars. The benefit in choosing a repo car from a bank or lender is that you can negotiate the price – and get financing directly from the seller!

Here are some of the best used cars you can find for $15,000 or less. 

Honda Civic (2014-2015)

The Honda Civic has always been a popular choice for car buyers because it’s efficient, stylish and easy to drive. The 2014-2015 models offer a good balance of style, reliability and fuel efficiency. They also come with a 1.8-liter four-cylinder engine that gets up to 39 mpg on the highway. 

Ford Focus (2014-2016) 

The Ford Focus is a safe, reliable vehicle with good fuel economy. It has a 2.0-liter four-cylinder engine that gets up to 37 mpg on the highway. It’s also an easy vehicle to drive since it has great body control and steering. Ford plans to phase out of the Ford Focus by 2025, so the current fourth-generation Ford Focus is not getting a replacement.

Toyota Corolla (2014-2016) 

The Toyota Corolla is another reliable and efficient car that has been a top choice for car buyers for many years. The 2014-2016 models come with a 1.8-liter four-cylinder engine and gets up to 39 mpg on the highway. Plus, the 2014-2016 models introduced a lot of new tech features, in addition to improved powertrains and safety features. 

Kia Soul (2015-2018)

If you’re looking for an alternative to a traditional SUV, the Kia Soul is a great choice. Its boxy design has surprising cargo and passenger space, a large liftgate for handling awkward cargo and both a USB port and Bluetooth. The base model is plain, but you can opt for the mid-level Plus trim that gives you an engine upgrade and other features. 

Hyundai Elantra (2014-2016)

The Hyundai Elantra is a budget-friendly car that offers good fuel economy and a compact design, making it a top choice for beginner drivers. As with the other vehicles listed above, the 2014-2016 models come with a 1.8-liter four-cylinder engine that gets up to 38 mpg on the highway. It also has a spacious design, giving you a good bang for your buck. 

Honda Accord (2013-2015)

Another great vehicle from Honda is the Accord, which offers sleek styling and plenty of advanced features. Plus, the 2013 model is considered one of the most reliable in the lineup, so it’s a great car for new drivers. The vehicle was also redesigned at this time, offering a sportier look and feel, a USB port and Bluetooth. 

Find an Affordable Used Car on RepoFinder.com 

Buying a used car is a great way to save money while still getting the reliable, efficient vehicle you deserve. RepoFinder continually updates its list with banks and credit unions that are eagerly selling their repo inventory. See what types of vehicles you can find for $15,000 or less! 

buy a used car

Is it Cheaper to Buy Cars in the Spring or Fall?

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If you’re in the market for a new vehicle, you might be curious as to which season is best for car buying: spring or fall. Typically, more used cars are sold during the spring and summer, which means sellers are more eager to make a sale during the cold weather months. This should result in lower prices and a bigger inventory, but it doesn’t always work this way. 

To get the best deal on a vehicle, you’ll want to pay attention to the car-buying trends in the news so that you can combine the best prices with the best financing offers. Also, when there is a lot of inventory to choose from, there is more room for negotiation, which can also help you get a better rate. 

Let’s look closer at the benefits to buying a used car in the spring versus the fall so that you can make the best decision for your needs and budget! 

Benefits of Buying a Car in the Spring 

As winter ends, more people are getting out of their homes and looking to purchase new things, including cars. March and April, tax season, are some of the best months to buy a car, either new or used. Dealers and sellers know that many people are receiving tax refunds, so they entice buyers with good deals and financing offers. 

Plus, March and June usually mark the end of fiscal quarters when dealers are more motivated to sell their inventory at discounted prices. We do recommend shopping at the end of the month, as car dealers are in more of a time crunch. If they haven’t reached their goal, they will be more likely to sell you a car at the price you want. 

Also, pay attention to car deals around Memorial Day, as this is when dealers want to get rid of old inventory so they can make room for new models in the fall. 

Benefits of Buying a Car in the Fall 

Historically, fall is an excellent time to buy a vehicle. We’re approaching the end of the year, which means dealers have specific goals to meet. Also, by the end of the year, dealers are trying to sell off the inventory they have to make room for new cars, meaning older models are priced to sell. 

In fact, an analysis by TrueCar found that buyers save an average of 10.3 percent off MSRP when they buy their car in December. Pay special attention to certain dates in the fall, including Labor Day, Black Friday and Christmas. There are always great deals happening around these times, helping you to save a little more off your purchase. 

Should I Buy a Car this Spring, or Wait? 

Here at RepoFinder.com, we believe in buying a car when you’re ready. You shouldn’t have to wait to buy something if your car is unreliable and a money trap. You should be able to afford a new vehicle that you feel safe in, and doesn’t cost you a ton in repair and maintenance costs. But, we also recommend doing your research and keeping an eye out for good deals, as this can help you save significant money. 

RepoFinder doesn’t have a ‘best time’ to buy cars, because EVERY DAY is the best day! We have a directory of banks and credit unions throughout the U.S. that are selling their repo inventory. We encourage people to check back often so they can find the perfect vehicle for them. 

To take advantage of great prices, quick sales and a wide inventory, shop for your new car at RepoFinder! 

tax deductions for personal car

Tax Deductions for Personal Vehicles

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Looking to buy a new vehicle? Wondering if your purchase qualifies for tax deductions? 

Buying a car for personal or business use may have tax-deductible benefits. The IRS allows taxpayers to deduct either local and state sales taxes or local and state income taxes, but not both. You can also deduct some of your vehicle’s operating costs if you use the car for business, charity or medical purposes.

Since it’s tax season and everyone has taxes on their brain, let’s cover what you need to know about tax deductions for personal vehicles. 

Car Sales Tax 

You may be able to deduct the car sales tax you paid when you purchased a new or used vehicle from a private seller or dealership. On your purchase order, it will state the amount owed in car sales tax. 

Both local states and local governments can charge sales tax. There are only five states that don’t pay any sales tax when purchasing a car: Alaska, Delaware, Montana, New Hampshire and Oregon. 

Property Taxes 

Some states also charge personal property taxes in addition to the sales tax. Property taxes are typically based on the car’s value. The higher the value of the car, the more you’ll pay in property taxes. 

Since the IRS only allows you to deduct up to $10,000 total in sales, income and property taxes, you’ll want to compare the two numbers – property tax and sales tax – and deduct the one that is larger. 

To determine this, you may have to play around with the numbers using tax software. You can itemize your deductions, or take a standard deduction. If you live in a state that doesn’t charge sales tax, then you’ll obviously just deduct the property taxes. 

What if I Use My Vehicle for Business, Too? 

If you use your car exclusively for business, you can write off most, if not all, of your car expenses, including car depreciation and car mileage. If you use your car for both business and personal purposes, as many people do, you’ll need to divide your expenses based on the mileage you’re using for each. 

You may also qualify for deductions if you own an electric vehicle. There is a $7,500 federal income tax credit for electric or plug-in hybrid vehicles, in addition to local or state incentives. You can learn more about driving down your taxes in this article from TurboTax. 

If you’re thinking about buying a car, you may be able to write some of it off on next year’s taxes, especially if you plan to use the vehicle for business purposes as well. To browse affordable repo cars directly from banks, lenders and credit unions, visit RepoFinder.com today! 

signing for car warranty

Are Extended Car Warranties Worth the Money?

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Reliability is an important factor when buying a new or used vehicle. In fact, 95 percent of car shoppers rank reliability high, which is why having a warranty is important. But while all new vehicles come with a factory warranty, used vehicles often don’t. 

Most new vehicles come with a three-year manufacturer warranty, or 36,000 miles, whichever comes first. The majority of used vehicles are already past this. But what if you want added protection with your used car? An extended warranty may be the answer. 

What is an Extended Car Warranty? 

Extended car warranties, also known as vehicle service contracts, are optional protection plans that can help you pay for car repairs. They typically start once the manufacturer warranty ends, but there are times when the two overlap. 

Vehicle service contracts often have requirements you’ll have to follow, so be sure to read all the fine print. For example, some warranties will require you to visit a certain repair shop in your network. You’ll also need to bring your vehicle in for routine maintenance. Failure to follow your maintenance schedule can render your warranty null and void. 

Typically, you’ll be required to provide your car with the following: 

  • Oil changes
  • Filter changes
  • Tire rotations
  • System checks 
  • Manufacturer scheduled maintenance 

What Do Extended Car Warranties Cover? 

Each vehicle service contract is different, so it’s important to read the fine print of your specific warranty. Also, some warranties are basic while others are comprehensive, covering things like your car’s entertainment system and climate control system. 

The two main types of extended car warranties are: 

  • Bumper-to-bumper warranty. This is the most comprehensive type of warranty available, and it covers almost everything, from the electrical system to the paint job. It does not cover vehicle maintenance, such as oil changes and filter changes.
  • Powertrain warranty. This warranty is less comprehensive but still offers significant coverage. Expect your transmission, engine and drivetrain to be covered. It also tends to last longer than a bumper-to-bumper warranty. 

Should I Get an Extended Warranty with My Used Car? 

According to a survey from Consumer Reports, 55 percent of people said they never used their extended warranty, and only 25 percent said they would buy one in the future. While extended car warranties look good on paper, they are overpriced. They also may not cover everything, which means you’ll be paying for the warranty and the repairs. 

Of course, there are situations when an extended warranty makes sense. And, you might even get other perks with the warranty, such as roadside assistance, rental car reimbursement and towing. This can make the added coverage worth it. Ultimately, you’ll have to sit down and determine whether you’re better off putting your money into an extended warranty or into a bank account to be used for repairs.