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Used Auto Warranty Warning: Beware Dealer-Issued Extended Auto Warranty Coverage

Buying a used car? You need an extended auto warranty to protect you from expensive surprises down the road. But be careful when your dealer tries to sell you used auto extended warranty coverage. Usually, the dealer is simply reselling used auto warranties issued by a used auto warranty company, with a markup of up to $1000. You could just as easily have bought the extended warranty directly from the auto warranty company.



But overpaying for a third-party used car extended auto warranty is certainly not the worst used auto warranty deal you can get. The worst auto extended warranty deal is to buy one that isn't issued by a third party at all.

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