A Complete Guide To Used Car Warranties

Written by Danny Collins

Last updated: June 7, 2023

Are you planning to buy a used car? If so, there are a few things you should know about getting the used car warranties before making your purchase.

Most new cars come with a manufacturer’s warranty that covers repairs or replacements for a certain time. But what about used cars? Do they come with a warranty? The answer is: it depends. If you’re buying a used car from a dealership, they may offer their warranty on the vehicle. However, if you’re buying a used car from a private seller, it’s unlikely that the car will come with any kind of warranty.

That being said, there are some things you can do to protect yourself when buying a used car, even if it doesn’t have a warranty. . In this guide, we will go over everything you need to know about used car warranties so that you can make the best decision for your purchase.

What Is a Used Car Warranty?

A used car warranty is a contract that protects you from having to pay for unexpected repairs or replacements. The length of the warranty will vary depending on the make and model of the car, as well as the dealership you’re buying it from.

It’s quite common for used cars to not have a warranty. Some used car warranties may only cover certain parts of the vehicle, while others may have a deductible that you will need to pay before the coverage kicks in. That said, if you are planning to buy a used car from a dealership, they may offer you a warranty as part of the purchase. However, these warranties are often not as comprehensive as the ones offered by manufacturers on new cars. It’s important to read over any warranty carefully before signing on the dotted line.

A used car warranty can provide peace of mind when buying a pre-owned vehicle. It can help cover the cost of repairs if something goes wrong with your car. However, it’s important to understand what is and is not covered by a typically used car warranty before making your purchase.

What Does a Used Car Warranty Cover?

You may believe that a used car warranty would cover any repairs that aren’t due to wear and tear (a common exemption). A used car warranty typically covers the engine and transmission. However, it is important to read the fine print as some dealers will only cover certain parts of the engine. For example, if a warning light indicates that it’s time to go to the garage, and a fault is discovered, your warranty may not cover it.

However, if you ignore the warning and allow the component to break, this might invalidate your claim – a catch-22 situation. Additionally, many used car warranties have a deductible, which means you will have to pay for repairs up to a certain amount before the warranty kicks in.

It’s also important to note that used car warranties typically have a time limit and a mileage limit. This means that if you go over the allotted mileage or time, your warranty will no longer be valid.

How Much Does a Used Car Warranty Cost?

Car warranties for old vehicles are frequently more expensive than the average repair tab for a used family vehicle. Most warranties can be altered, but increasing the coverage will result in higher premiums, and you may wind up with a policy that can’t compete with most used cars’ low average repair expenses. Don’t be fooled by a cheap offer; you could be buying a policy that will leave you high and dry when it comes time to make a claim.

Every warranty maybe tinkered with, but raising the package price might necessitate a change in coverage. When you’ve perfected the cover to what you want, you may be stuck with a plan that can’t compete with most used vehicles’ low average repair costs. On the other hand, don’t be fooled into thinking a cheap offer will cough up your repair expenses by including a list of terms and conditions as long as your arm.

A reliable auto repair business is the ideal solution if you want to avoid purchasing a used automobile warranty. Setting money aside for future repairs and securing a good, local mechanic that provides value for money are two excellent options. However, make a careful study of the small print before signing anything away if you want the security of having a warranty.

What Does a Used Car Warranty Not Cover?

Several things are not covered under a typically used car warranty. These include:

Wear and tear: This is defined as any damage that occurs due to normal use of the vehicle. For example, replacing brake pads would not be covered under a warranty because they are considered to be part of normal wear and tear.
Damage caused by an accident: If you get into an accident and damage your car, this will not be covered under a warranty.
Damage caused by neglect: If you do not properly maintain your car and this results in damage, this will not be covered. For example, if you do not change the oil regularly and your engine seizes as a result, this would not be covered.

It’s important to understand what is and is not covered by a used car warranty before making a purchase. This will help ensure that you can get the coverage you need if something goes wrong with your car.

How Can I Get a Warranty for My Used Car?

If you’re wondering how to get a warranty for your used car, the answer may be simpler than you think. In most cases, the dealership from which you purchased your used car will offer some kind of extended warranty, and many manufacturers offer their own as well. However, there are a few things to keep in mind when shopping for an extended warranty on a used car.

First, it’s important to understand that an extended warranty is not the same as insurance. An extended warranty is a service contract that covers repairs or replacement of your car’s parts and systems, while insurance covers damages to your car in case of an accident. That said, you’ll still need to purchase auto insurance even if you have an extended warranty.

Second, extended warranties on used cars usually come with some restrictions. For example, they may not cover wear and tear or mechanical issues that arise from modifications you’ve made to the car. Additionally, they may have a limited time frame or mileage restriction. Be sure to read the fine print of any extended warranty you’re considering to ensure you understand all the terms and conditions.

Finally, remember that you don’t have to purchase an extended warranty from the dealership. Several third-party companies sell extended warranties for used cars. Just be sure to do your research before selecting a provider, as not all companies are created equal.

Important Things to Consider When Buying a Used Car Warranty

When you’re buying a used car, it’s important to do your research and understand all the different factors at play. The same goes for used car warranties. Here are some things to keep in mind when shopping for a warranty:

Make sure you understand what is and is not covered by the warranty. Most used cars do not come with a warranty; however, some dealerships offer them as part of the purchase agreement. These types of warranties are often not as comprehensive as those offered by manufacturers on new cars and it’s important to understand what is and is not covered before making your purchase.
Check the length of the warranty. Some warranties are only good for a year or two, while others may last up to five years.
Be aware of any deductibles that may apply: many used car warranties have a deductible, which means you will have to pay for repairs up to a certain amount before the warranty kicks in.
Consider the cost of the warranty relative to the price of the car. Understand that a cheap offer may not be as good as it seems.
Don’t be afraid to negotiate: the cost of a used car warranty is determined by the make and model of the vehicle, as well as the length of coverage. You may be able to negotiate a lower price for the warranty if you’re willing to purchase it for a shorter time.
Set money aside regularly for future repairs. Enlist the help of a trustworthy, local mechanic to get the best value for your money, this way, you can avoid signing away your hard-earned cash to an unreliable used car warranty.
It will be good for you to mechanically inspect the used car before purchasing as well as running a car check. By running a car check, you will be able to see if there are any previous problems with the vehicle that may not be covered by the warranty. You can use Reg Car Check to do this. Reg Car Check will provide all information about the vehicle’s history so that you can decide whether to purchase the warranty or not.
Some companies offer “bumper-to-bumper” coverage, but this is typically only available on newer used cars.
Make sure the provider is reputable and has been around for a while. Check online reviews to learn more about the company and its products and services.

Should You Get a Used Car Warranty?

If you are buying a used car, it is important to do your research before deciding on whether or not to purchase a warranty. You will want to consider the make and model of the car, as well as your driving habits. If you are an experienced driver who takes good care of your car, you may not need a warranty. However, if you are buying an older car or one that is more likely to have mechanical issues, a warranty may give you peace of mind. Ultimately, the decision is up to you and should be based on your specific needs and budget.

If you want to protect yourself against the expenses of having a vehicle, consider purchasing a manufacturer’s extended warranty when you buy a new car. These are usually less restrictive than third-party warranties. You may even be able to transfer the warranty to a new owner if you sell the car.

Enlisting in a used car warranty plan is one way to give yourself some peace of mind when driving a less-than-new vehicle off the lot.

Terms and Conditions of Used Car Warranties

When you are getting a used car warranty, be sure to ask the dealership about the terms and conditions. Most warranties have a list of items that are not included in the coverage. For example, common exclusions from used car warranties include:

Age limit: Several warranties will not cover vehicles that are more than a certain amount of years old. If your car is approaching the age limit, a warranty may not be worth it.
Mileage limit: some warranties will only cover cars that have driven less than a certain number of miles, be sure to ask about this before you purchase a warranty.
Betterment: If a repair or replacement part increases the value of your automobile, you may be required to pay some of the expenses. That being said, if the part is under warranty, you will only be required to pay the deductible.
Claim limit: this refers to the number of claims you are allowed to make in a certain time. Once you have reached your claim limit, the warranty will no longer cover repairs.
Consequential damage: this term refers to damage that is not directly caused by the failed part, but is a result of it. An example of this would be if your car’s engine fails and as a result, the transmission is also damaged. In this case, you would only be covered for the cost of repairing the engine.
Damages caused by accidents: many warranties will not cover repairs needed due to an accident. Be sure to check with the dealership to see if this is the case. Also, find out if the used car has been in any accidents by running a car check.
Excess: the amount of money you will be responsible for in each warranty claim. Some insurance policies raise the excess as your miles increase. This means that you will have to pay more if you need to make a claim.
Garage choice: Some garages are ‘approved’ by the provider. Using something else might result in you having to pay some of the labour costs. Make sure you know which garages you can use.
Labour rate: The time it takes to fix the problem. With some policies, there is a limit on how much they will pay for labour costs. With this in mind, it is important to know how much your chosen garage charges.
Normal wear and tear: over time, parts of your car will experience normal wear and tear and will need to be replaced. Wear and tear on car components are rarely covered by warranties. Even if they are insured, ‘consumables’ such as tires and brake pads are not included.
Payment schedule: Most warranties are paid for in full upfront but some can be spread out over several months. If you do choose this option, make sure you understand the interest rates and terms and conditions.
Preexisting Conditions: If your car has a problem when you take out the warranty, it probably won’t be covered. Make sure you get the car checked out before you buy a policy.
Regulated provider: ensure that your service is provided by a reputable firm and that you are entitled to a 14-day cancellation period if you change your mind.
Servicing schedule: If you want to keep your warranty, you must service your automobile according to the manufacturer’s recommendations and maintain all paperwork. Failing to do so might void your warranty, as well as use non-standard parts.
Time limit: some warranties only allow you to file a claim after a specific length of time (e.g., 90 days). Any problems that might occur during that time would not be covered.
Transferability: some warranties can be transferred to a new owner if you sell the car, while others are non-transferable. Be sure to ask about this before you purchase a warranty.
Type of cover: Some policies only cover parts while others will also pay for labour costs. When comparing different policies, make sure you know what is included in each one.
Warning lights: This might void your warranty, so get it checked out as soon as possible.

As you can see, there are a lot of factors to consider when purchasing a used car warranty. Be sure to do your research and ask lots of questions before making a decision. And, always remember to get a car check before buying a used car to ensure that the used car you want to buy does not have any hidden problems! By doing so, you can avoid any problems that might arise down the road. Safe travels!

Frequently Asked Questions

What is a used car warranty?

A used car warranty is a contract between a vehicle owner and a warranty provider that covers certain repairs and services for a specified period after the purchase of a used car. It provides financial protection against unexpected breakdowns and repairs, offering peace of mind to the buyer.

Why should I consider purchasing a used car warranty?

Buying a used car comes with inherent risks, as the vehicle may have hidden issues or mechanical problems. A used car warranty can help mitigate these risks by providing coverage for repairs and parts replacement, potentially saving you significant expenses in the event of a breakdown.

What does a used car warranty typically cover?

Used car warranties can vary in coverage, so it’s essential to review the terms and conditions of each warranty. However, most warranties cover major components such as the engine, transmission, electrical systems, and drivetrain. Some warranties may also include coverage for additional components like the air conditioning system or suspension.

Are there different types of used car warranties?

Yes, there are different types of used car warranties available. The two main types are powertrain warranties and bumper-to-bumper warranties. Powertrain warranties typically cover major components such as the engine, transmission, and drivetrain. Bumper-to-bumper warranties provide more comprehensive coverage, including electrical systems, air conditioning, and other components.

How long do used car warranties typically last?

The duration of a used car warranty can vary depending on the warranty provider and the specific plan chosen. Some warranties may last for a specific number of years or miles, while others may offer coverage for a certain period of time, such as 12 months or 24 months. It’s crucial to review the warranty terms to understand the coverage period.

Can I purchase a used car warranty for a vehicle I already own?

Yes, in many cases, you can purchase a used car warranty for a vehicle you already own. However, some warranty providers may have restrictions based on the age, mileage, or condition of the vehicle. It’s best to check with the warranty provider to determine if your vehicle is eligible for coverage.

Do used car warranties require a deductible?

Yes, most used car warranties require a deductible, which is the amount you need to pay out of pocket towards each repair or service visit. The amount of the deductible can differ based on the warranty provider and the particular plan chosen.It’s important to consider the deductible amount when evaluating the overall cost and value of a warranty.

Can I choose where to have my car repaired under a used car warranty?

The ability to choose a repair facility may depend on the specific terms of the used car warranty. Some warranties may require repairs to be done at authorised repair shops or dealerships, while others may allow you to choose any licensed repair facility. It’s essential to review the warranty terms to understand the repair process and any restrictions.

Is a used car warranty transferable if I sell my vehicle?

Whether a used car warranty is transferable or not depends on the warranty provider and the specific terms of the warranty. Some warranties may be transferable to a new owner, while others may not. If you plan to sell your vehicle, it’s advisable to check with the warranty provider to determine if the warranty can be transferred to the new owner.

Are there any exclusions or limitations in used car warranties?

Used car warranties typically have certain exclusions or limitations. These may include pre-existing conditions, wear and tear, regular maintenance services, and damage caused by neglect or misuse. It’s important to read the warranty contract carefully and understand the coverage exclusions and limitations before making a purchase decision.

Can I cancel a used car warranty?

Cancellation policies for used car warranties can vary depending on the warranty provider and the specific terms of the warranty. Some warranties may allow cancellation within a certain timeframe, typically within the first few days or weeks of purchase, while others may have restrictions or fees associated with cancellations. It’s important to review the cancellation policy outlined in the warranty contract.

How do I make a claim under a used car warranty?

To make a claim under a used car warranty, you will typically need to contact the warranty provider or their designated claims administrator. They will guide you through the claims process, which may include providing documentation such as repair invoices and diagnostic reports. It’s important to follow the specific instructions outlined in the warranty contract to ensure a smooth claims experience.

Can I purchase a used car warranty from any provider?

There are numerous warranty providers in the market offering used car warranties. It’s important to research and choose a reputable provider with a history of good customer service and reliable coverage. Reading reviews, comparing plans, and understanding the terms and conditions of each warranty can help you make an informed decision.

Will a used car warranty cover all repairs and maintenance costs?

Used car warranties typically cover specified repairs and components as outlined in the warranty contract. However, it’s important to note that not all repairs or maintenance costs may be covered. Regular maintenance services, cosmetic repairs, and certain wear and tear items may not be included in the coverage. Reviewing the warranty terms will help you understand what repairs and costs are covered.

Can I purchase a used car warranty for any used car?

While many used cars are eligible for warranties, some warranty providers may have restrictions based on the age, mileage, or condition of the vehicle. It’s important to check with the warranty provider to determine if the specific vehicle you’re interested in is eligible for coverage. Some providers may require a vehicle inspection before issuing a warranty.