If you have been the sole owner of a vehicle, many warranty plans are easy to get into. But, once you purchase a vehicle used, many of the initial warranty plans, and even extended plans purchased by the last owner, are no longer valid. Here are a few things you should think about before making a decision on whether an extended warranty is for you:

Do you need one? – Generally, the answer to this question is yes. Since you don’t know where your used vehicle has been or what type of abuse it has been put through by it’s initial owner, you don’t know if there is an expensive part on the car that is just waiting to break when you are using it. An extended warranty will help you with these repairs.

Do your Research. – Get to know who offers extended warranties for used cars. This is not quite as broad of a business base as most extended warranty programs, as many companies don’t offer these plans to secondary owners of a vehicle.

How high is the mileage? – Many dealers will cover their cars to a certain number of miles, even if it’s sold to a second owner. This is especially the case if you have purchased your used car from a dealership. They may leave the original factory warranty in place for you to take advantage of, or offer their own extension since they are making the sale. Make sure to ask about any coverage they are giving you on the vehicle before you decide to pay for a used auto extended warranty plan.

Do you need to buy now? – While it differs by company, you don’t have to purchase an extended warranty on your new car right away. If you already have purchased the car, don’t panic, take your time and select the right warranty program for you. In most cases, you have a year or so to decide to purchase extended warranty coverage.

Can you handle repairs? – One major consideration you should make is whether or not you can handle the cost of repairs that may come up. For the most part, people purchase extended warranties to be able to avoid the unexpected. By paying for coverage in advance, they have essentially pro-rated the repairs that may be needed instead of getting stuck with them all at once. If you are good at saving money, you may just want to keep putting a little extra aside so you know you have the money for the repairs when you need it.

Generally, this decision is one that relies on risk assessment. If you have a reliable car you don’t worry about, you may be better off putting a little extra in the bank, for that rainy day. If you have a car with all the bells and whistles, more things to go wrong, you may want to purchase a used auto extended warranty, so you know you’re covered.

For example, the American automaker Chrysler has begun offering a “lifetime” warranty on the powertrain of its vehicles. To consumers shopping for a reliable car, “lifetime” sounds like a pretty sweet deal. However, when you read the fine print, and add up the numbers in relation to how long the average consumer will keep a car, Chrysler’s “amazing” warranty ends up looking about the same as any of their competitors.

One manufacturer that has made significant gains when it comes to warranties is the Korean Hyundai, and its offshoot brand, Kia. Back in the 1990s, Hyundai introduced the 10 year, 100,000 mile powertrain warranty. The company continues to offer the same warranty package, and it has proved to be a substantially better deal than its competitors.

General Motors has also begun to compete in the “warranty wars.” The company’s 100,000 mile powertrain warranty is exceptional in that it is completely transferable to any new owner of the vehicle. A transferable warranty is important because it generally increases the value of the car when sold used. And in theory, the transferable warranty should save consumers a lot of money, unless they plan on keeping the car for life.

But in practical application, things don’t always work out that way. JD Power and Associates report that the average consumer sells their car after 5 1/2 years. This means that even with a transferable warranty, the new buyer will only have a maximum of six months of coverage.

Another problem with many of the “fabulous” warranties now being offered by manufacturers is in what they don’t cover. Modern automobile engineering has improved to the point where engine and transmission problems are rare in new vehicles. In today’s more complex cars, electrical systems are more likely to cause trouble than the large mechanical parts of the drive train. Unfortunately, many of these electronic systems are not included under standard powertrain warranties of any length.

Instead, electrical systems and parts are usually covered under the car’s basic warranty, which is usually far less comprehensive, and can be valid for as little as three years or 36,000 miles.

Because large mechanical parts no longer break down as often as they used to, the smaller electronic or parts and systems become a greater liability with most new cars. And because these systems are normally covered for only three years, the buyer can be left footing the bill for expensive worn-out electronics when the basic warranty expires.

For this reason, powertrain warranties are becoming less and less important, and basic warranties are becoming far more important. Interestingly, of the major US market car manufacturers, all offer essentially the same three-year, 36,000 mile basic warranty, with the exception of Hyundai and Kia, which offer a five-year, 60,000 mile bumper to bumper warranty.

All this just proves that you should never buy a car for the warranty alone. With very few exceptions, most manufacturers offer essentially the same deal. So getting the best new-car warranty might not be as critical as once thought when deciding on a new vehicle.