Why should you buy an extended warranty program for your car?

Why should you buy a extended warranty program for your car
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The cost of buying a brand new car is high especially in Singapore. Hence, most people will prefer purchasing second hand cars from car marts in Singapore because the depreciation would have been borne by the first owner.

Purchasing a used car also has its sets of issues because there is a high possibility of the machine breaking down. Chances are that used cars do not have an existing warranty coverage on them when you get them from the car dealership. There are however several 3rd party warranty programs available in the market. Thinking of purchasing a warranty program? Here’s some considerations to take note and consider before buying an extended warranty for your used car.

1. Cost of Repair

The cost of repairs are highly related to the make and model we are looking at. There are a  few models that are usually known as “workshop cars”. This pun meant that the vehicle is usually in the workshop more often than it’s on the road. In this case, you will know that it will cost a fortune and plenty of time wasted in the workshop. Hence, buying a warranty will be essential to cover unexpected burns to the pocket.

On the flip side, the asian brands usually have a lower maintenance cost and an even lower chance of a breakdown and there it will not be economical to get a warranty program.

2. The Cost Of Warranty

The cost of the extended warranty program is the most important consideration before purchasing the program. The cost of the warranty program for PARF cars (2010 to 2020 registered car) is usually cheaper than a (COE renewed Car). The warranty program with the most expensive price tag belongs to the BMW M, Mercedes Benz AMG and Audi’s S series. Simply because the more exotic or the older the car gets, the more likely it is to have problems and the cost of repair rockets. It is also a big commercial risk for insurers to foot the bills for these.

3. Warranty Coverage

One thing to have a crystal clear understanding about is the coverage of this warranty program. The usual coverage is on the drive train (Engine and Gearbox). However, the car is a complicated machine. We have valve covers, rubber seals, steering racks and the list is extensive. It is wise to have a 100% grasp on what you are really paying for. 

4. Terms and conditions

Before purchasing the warranty program, most insurers require extensive workshop inspections and to be given a pink sheet of “health” before the warranty covers. If the workshop picked up some defects, wear and tears. It’s usually a prerequisite to have it fixed first. If the car passes inspection, there is usually a ‘cooling period’ of 30 days. In layman terms, there should not be any warranty claims in the first 30 days. If there is, the program will be voided.

OTUA says!

You should only consider buying a warranty program if the agent warranty has expired. To find out the true condition of your car, you could consult your mechanic and have a detailed inspection and get a rough estimation on the repair cost and  determine for yourself if you should go ahead with the warranty purchase. 

Should you decide to buy a used car from Otua Singapore, we do have a warranty program too! 

Need a new ride?


Get protected from $1.20 /day and you will be able to breathe easy when you’re buying a used car. You can also avoid shocking repair bills from unforeseen breakdowns and enjoy better nights of sleep.

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Our Charges

Asian Continental Exotic
PARF Cars (<10 years old) $500 $800 $1,000
COE Cars $300 $500 $1,000


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