“Inundated” might be too strong a word, but I’ve been getting a lot of calls lately about used cars.
The story is almost always the same: a car with over 100,000 miles, bought from a dealer or Facebook Marketplace, complete with an “extended warranty.”
It turns out the old adage is entirely true: When you buy a used car, you are buying someone else’s problems.
The Extended Warranty Illusion
If you think that aftermarket warranty has your back, think again. The warranty company will do everything in its power to avoid paying out. Many of these policies have strict cash limits—either a maximum lifetime payout or a capped dollar amount per system (like transmission or engine).
The bottom line: Just like health insurance companies, extended warranty companies make their money by not paying out under the policy.
“But Marc, they must have known it was broken!”
Maybe they did, maybe they didn’t. But here’s the reality: it’s an old car with a lot of miles on it. Stuff breaks, and that stuff is expensive.
And if you think a domestic high-mileage car is a gamble, a European one is financial roulette.
I know, I know—you’ve always wanted a BMW, and you found a nine-year-old 3-Series loaded with features that actually fits your budget. Unless you’re buying it from my sister (and honestly, even then, it’s still an old BMW), do not buy that car.
The purchase price might be cheap, but the cost of parts and labor didn’t depreciate with the car. Unless you are a skilled DIY mechanic, step away.
You Are Not a YouTuber
I know some folks in the YouTube automotive community. They buy interesting, high-mileage, unreliable cars all the time—for content.
- They have alternative vehicles.
- They write off the repairs as business expenses.
- They make money when the car breaks down on camera.
You are not a content creator. You have a 9-to-5 job that expects you to show up. You have kids, pets, and a life that requires reliable transportation. Do not buy an old car.
What Happens If You Call Me?
If you already bought one and it breaks, and you call my office looking for legal recourse, here is how that conversation is going to go.
First, I will ask the standard questions:
- Do you have an extended warranty or service contract?
- Did you sign an “As-Is” clause in the purchase agreement? (Spoiler: You probably did.)
- Were there any written representations about the condition of the car?
When the answers turn up dry, I will transition into what I call “Father Mode.”
As a father whose own offspring rarely ask for advice these days, I occasionally have to pretend to be someone else’s dad. When you tell me the genuinely sad story of how you bought an old car expecting it to run like new, I’m going to tell you the hard truth: You need to chalk this up as an expensive learning experience, because legally, there is very little I can do.
The Summary
- Do not buy an old car.
- Do not buy a high-mileage car unless you are married to a mechanic who works for free.
- And for your sake (and my sanity), do not buy an old car with high mileage.