Reviewed by Attorney: Chuck Panzarella, JD
Buying a used car can feel risky, but a quality warranty brings peace of mind. This comprehensive guide answers all your questions about used car warranties.
What is a Used Car Warranty?
A used car warranty is an agreement between the buyer and seller that covers repairs and parts replacements. It protects against expensive mechanical issues for a set time period after buying the used vehicle.
Key Takeaways About Used Car Warranties
- Used cars typically come with a 30-day minimum warranty
- Warranties cover major mechanical defects and sometimes wear items like brakes and tires
- Extended used car warranties provide longer protection but cost extra
- Federal laws require disclosure of whether a car is sold “as is” or with a warranty
Are Used Car Warranties Mandatory?
The Federal Trade Commission’s Used Car Rule requires dealers to display a Buyers Guide in every used vehicle. This guide discloses if the car is sold with a warranty or “as is.” As is means no warranty at all. Dealers are not legally required to provide a warranty, but many do. Always verify warranty details before purchasing.
Over 80% of used vehicles at franchised dealers come with at least a 30-day warranty covering major defects. Independent dealers offer warranties around 65% of the time, while private sellers rarely include warranties.
What’s Typically Covered and Excluded?
Most 30-day used car warranties include repairs of:
- Engine
- Transmission
- Drivetrain
And exclude coverage of:
- Wear items like brake pads
- Fluids
- Normal maintenance
See the written warranty contract for full details. Third-party extended warranties provide additional inclusions like tire rotations and rentals but cost extra.
Used Car Lemon Laws
If the dealer does not fix covered defects properly within the warranty time frame, state lemon laws allow the buyer to receive compensation.
This typically requires a written notice to the dealer and allowing them one last chance to repair it. An attorney can advise if you qualify for lemon law compensation.
Steps to Get Covered Repairs Approved
- Contact the warranty company and file a claim
- Provide documentation like repair estimates
- Obtain claim approval before any work is done
- Pay deductible if required
- Warranty company pays the remaining repair costs directly
Should I Buy an Extended Warranty?
An extended used car warranty from the dealer or third-party provider lengthens the coverage duration from 30 days up to 7 years. Protects against future repair bills. But extra years raise the price, with plans from $200 to over $1,000.
Consider mileage, repair history, and ownership timeframe when deciding. Compare warranty terms, as some exclude high-cost repairs.
Key Takeaways
Used car warranties provide vital consumer protection. When shopping:
- Verify if a warranty is included and read the terms
- Learn state lemon laws for recourse if not repaired
- Compare extended warranty options if keeping the car for over 2 years
- File warranty claims properly to avoid personal charges
- Contact an attorney for guidance if denied warranty repairs
Protect yourself by researching thoroughly and documenting the sales process and warranty details.
Sources
- Federal Trade Commission Used Car Rule
- Consumer Reports survey of dealer warranties
- Extended warranty provider