In the last few years, the auto industry has been in a permanent state of disruption regarding car buying. From global economic uncertainty during the pandemic, coupled with supply chain issues, both new and used vehicles saw drastic changes in price and supply. Automotive brands such as Toyota, Honda, Nissan, Subaru, BMW, Kia, and more all felt these major impacts. Then, right as things seemed to stabilize at the tail-end of 2024, discussions regarding tariffs kicked off in the White House, which re-ignited the issue.

Faced with fears of price hikes amidst these discussions and all the prior factors influencing the auto market, consumers began to buy older used cars in an attempt to beat price hikes. The side effect the auto market is seeing now, though, is an uptick in vehicle repairs and costs. What may have seemed like a deal at the time, many drivers are finding out, is actually a major headache.

How Panic Buying Drove Down Used Car Prices

During the peak of supply shortages, microchip delays, and, most recently, the looming threat of tariffs, the trends were all the same: prospective car buyers were desperate to secure reliable transportation. With dealerships unable to keep new inventory on the lot for one reason or another, and used cars disappearing quickly, too, many consumers simply impulse-bought a vehicle to avoid getting priced out of the market. This occurred in the first half of 2025 as well, with many drivers anticipating rising prices on new vehicles due to tariffs.

Fast forward to today and the auto market has become flooded with panic-bought used vehicles with high-mileage that are being traded in or resold. This increase in supply has caused a noticeable drop in used car prices. While this may seem like a good thing to a budget-conscious buyer, there are hidden costs to purchasing a high-mileage used vehicle that need to be taken into account.

The Hidden Cost of Cheap, High-Mileage Vehicles

A low sticker price can be an alluring temptation, especially if it’s a vehicle you have wanted to own for some time. Under the surface, though, that low sticker price often hides a vehicle that has had years of deferred maintenance, plenty of wear and tear, and many aged components. This can cause a host of issues with major parts such as the transmission, timing belt, fuel injectors, engine, or suspension, thereby resulting in thousands of dollars in repairs.

On top of this, many of the used cars flooding the purchase market again were bought so quickly and from third-party sellers, such as individuals, that there were limited pre-purchase inspections or service history transparency. Many dealerships and private sellers therefore don’t have as thorough of insight into the car’s true condition, leading to a lower price tag but also greater risk of repairs.

Most Common Repairs on Aging Used Cars

Whether the used car you are looking at is a compact sedan, SUV, sports car, or any other type, there are some common repair issues that arise once the 100,000-mile mark is passed (the bulk of today’s “affordable” used car inventory). Even in the best used car, five major issues seemingly occur:

1. Transmission Failures: Transmission replacements or rebuilds are among the costliest repairs, often exceeding $4,000, but high mileage and poor maintenance accelerate wear on this vital system which makes it a common issue in these vehicles.
2. Suspension Problems: Worn-out shocks, struts, and control arms lead to rough rides and handling issues, with these parts not only being expensive to replace, but also impacting vehicle safety.
3. Brake System Repairs: Older cars often need complete brake replacements, including new calipers, rotors, and pads, especially if the previous owner didn’t keep up with the maintenance.
4. Engine Issues: Oil leaks, blown head gaskets, and misfires are common in vehicles that haven’t been regularly serviced, all of which are difficult and expensive to fix.
5. Electrical System Failures: Older wiring and sensors often fail over time, and diagnosing electrical problems is labor-intensive with parts being harder to find for aging models.

The other problem is that even seemingly minor issues that may not cost a lot to fix on a new car become more expensive on older or cheap cars at a car dealership. This is mainly due to the fact that the parts used in older vehicles aren’t as in-demand anymore, thereby driving up prices.

Why Many Dealerships Are Struggling with Trade-Ins

The average used car dealer, whether a salesperson at a dealership or a third-party, is now also faced with a dilemma of their own as a result of the trends in the industry over the last few years: move aged inventory at a lower price range or maximize avoiding liability on selling cars on the cusp of mechanical failures. This issue has led to a tighter squeeze on margins for dealerships due to the increase in warranty claims on certified pre-owned vehicles.

Given that many of those panic-bought vehicles may potentially fail an inspection or require too much reconditioning to be sold for profit, many dealerships are either getting out of the used car game or are adding stringent requirements on trade-ins. While this is helping to reduce the number of high-mileage vehicles in use that may soon have an issue, it doesn’t help those who already have such a vehicle with no protection.

How an Extended Warranty Can Protect Against Surprise Repair Bills

With all this uncertainty in the air, there is one financial tool that used car drivers can consider leveraging: extended warranties. An extended auto warranty, more accurately called a vehicle service contract (VSC) or auto protection plan, is a safety net for repair bills, so long as the repair is caused by a covered mechanical breakdown. When this covered repair is required, you simply take your vehicle to an approved repair facility, submit a claim, and enjoy a reimbursement for some or all the cost.

A standard VSC may only offer coverage up to 100,000 miles, but Endurance Warranty offers high-mileage options through the Select Premier and Advantage plans. The Select Premier plan offers comprehensive coverage for vehicles with up to 150,000 miles regardless of when your factory coverage expired, and the Advantage plan offers coverage for vehicles up to 20 years old with no mileage cutoffs. Under the Advantage plan, you can also enjoy up to $3,500 in maintenance services, including oil and filter changes, tire rotations, alignment checks, and more.

Protect Your Vehicle With Endurance

Whether you have found yourself with a high-mileage vehicle because you bought in an effort to beat soaring prices or you are in the market for one now, having protection for the vehicle is important. With high-mileage options available through Endurance, there’s no reason not to protect your vehicle. You can also enjoy a FREE year of Elite Benefits with any Endurance contract, offering bonus perks like tire repair or reimbursement due to road hazards, key fob replacement, windshield repair, and more.*

To learn how Endurance can help protect you against unexpected repair costs, contact one of our service plan advisors at (800) 253-8203 or request a FREE quote. You can also shop our online store to see your price and plan recommendations now.