Is a used car extended warranty a good idea?

Posted by SharonEvans on October 25th, 2012

 Individuals in the country of Australia that are considering the purchase of previously owned equipment may be offered a used car extended warranty as part of the purchase package.  Sometimes this warranty will be offered as part of the vehicle price, while at other times it will be offered as an additional program that needs to be purchased separately.  If it is offered by the dealership the client should inquire as to whether or not it can be included in the aussie car loan that is being applied for or if it will require a separate lump sum payment.

An aussie car loan for used vehicles can be a difficult item to obtain.  Not all applications are approved for clients with less than the accepted credit ratings.  Sometimes the purchase of a used car extended warranty will help ensure to the financial institution the loan requestor’s intent to pay off the loan as scheduled.  A warranty for the vehicle shows the lending facilities that the vehicle is covered for a specific period of time should anything malfunction or become inoperable.  This might be enough to sway the decision in favor of the borrower that is on the edge of being accepted or denied.

A used car extended warranty is also beneficial for the purchaser in that it will help to provide protection for the investment that is being made.  If they are taking out an aussie car loan for the purchase of the vehicle they will want to insure that they are guaranteed the automobile will function accordingly without failure.  Used vehicles can come in any condition from their previous owners and often times right at the point they begin to naturally malfunction due to age and wear and tear.  If they are not warrantied the cost of repairing them will come as an additional expense to the new owner.

If the customer purchasing the vehicle does not have the funding to purchase a used car extended warranty they should consider seeking a higher loan amount to cover the cost.  Vehicle repair work can be very expensive for people to have completed.  If the used car is not properly covered with insurance and warranties the financial hardships that can occur, then the possibility for increased risk does exist.  The dealership where the vehicle was purchased will be under no obligation to cover any costs for the vehicle once it has been accepted by the purchasing party.  This can also result in an aussie car loan being paid on a vehicle that cannot be driven.

The used car extended warranty program was implemented for a very specific reason.  Previously owned vehicles often come with a plethora of unforeseen problems.  To prevent having to make payments on an aussie car loan for a vehicle that has malfunctioned or failed completely one needs to take the necessary steps to ensure their safety and security.  Nobody can force a customer to purchase this additional protection, as it does come at a price; it is solely up to the customer in question to make that determination.

Are you applying for an aussie car loan to buy a vehicle that will be used for secondary purposes? Stop by our website and consider the option of purchasing a used car extended warranty to further protect your interests.

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SharonEvans

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SharonEvans
Joined: August 11th, 2012
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