Used Car
Warranty
When buying a used car it is
ideal if that vehicle still
has a remainder of its
original warranty on it.
Most new cars are sold with
a three-year/36,000-mile
warranty. So, if you buy a
car that is from one to
three years old, it will
still be under the factory
warranty. If there is
anything wrong with the car
when you bought it, the
problem will be fixed for
free, and this is huge for
used cars. Used car
warranties are available
from main dealers or from
warranty specialists. By
dealing with a warranty
company directly, you my
save money, and always shop
around; prices very greatly.
Make sure you know exactly
what is covered by the
warranty you buy. Most used
car warranties require you
to have your used car
serviced according to the
manufacturer's schedule but
you should be able to take
your car to any garage for
servicing and repairs.
Full Warranty
What's covered by the
warranty of a used car
depends on the car and what
the company has offered. A
full warranty, whether the
car is new or used, includes
the following: Anyone who
owns the vehicle during the
warranty period is entitled
to warranty service.
Warranty service will be
provided for free. You have
the choice of replacement or
a full refund if the dealer
can't repair the vehicle.
You only have to tell the
dealer that warranty service
is needed in order to get
it, unless the dealer can
prove that it's reasonable
to require you to do more.
Coverage on the used cars
often excludes wipers,
fluids, belts, tires,
battery, accessories, and
windows.
Limited Warranties
A limited warranty means the
used car has certain
conditions and limitations
on the parts covered, types
of damage covered and/or
time period for which the
agreement is valid. Most
used car warranties are
limited, and their coverage
varies. Some parts or
systems may be covered by a
full warranty, while others
are covered by a limited
warranty.
Extended Warranties
Most dealers offer the
option to purchase extended
warranties on used cars, but
be cautious of these. If you
do purchase an extended
warranty, make sure
understand what all coverage
means and make sure it
covers both breakdown and
wear and tear and it is
effective the day you
purchase it. It should come
from a well-funded and
insured car warranty
business, and offer a $0
deductible.
Implied Warranties
State laws hold dealers
responsible if used cars
they sell don't meet
reasonable quality
standards. This is an
implied warranty, and it is
basically unspoken and
unwritten promises from the
seller to the buyer of the
used car. There is no
specified time period for
implied warranties. The most
common type of implied
warranty is the warranty of
merchantability: The seller
promises that the product
offered for sale will do
what it's supposed to. It
does not cover everything
that could go wrong. A
dealer's liability on the
used car is judged
case-by-case. When a dealer
sells a vehicle with a
written warranty or service
contract, implied warranties
are included automatically.
The dealer can't delete this
protection. Any limit on an
implied warranty's time must
be included on the written
warranty.
Service Contracts
A service contract provides
repair and/or maintenance
for a specific period, and
cost extra and are sold
separately. Make sure the
service contract on the used
car does not duplicate the
warranty coverage. You can
determine the value of a
service contract by figuring
whether the cost of repairs
on your used car is likely
to exceed the price of the
contract. The service
contract covers all parts
and systems. Again,
understand all claims, as
some terms can be confusing.
Usually repairs and routine
maintenance, such as oil
changes, have to be done at
the dealer, and there are
often cancellation fees and
the contract is voided. The
dealer must check the
appropriate box on the
Buyers Guide of the used car
if a service contract is
offered. federal law
prohibits the dealer from
eliminating implied
warranties on the systems
covered in the contract.
Unexpired Manufacturer's
Warranties
If the used car is less then
three years old, the
manufacturer's warranty may
still be in effect. This
would be included in the
"systems covered/duration"
section of the Buyers Guide.
Make sure this warranty is
transferable to a new owner,
and determine how much
longer it will be in effect,
so you can get additional
coverage if neccesary.
As Is - No Warranty
When a used car is sold "as
is," this means that once
the car is taken out of the
lot, the owner is
responsible for all repairs.
Some states don't allow "as
is" sales for many used
vehicles. This type of
purchase for a used car may
be risky, it also will
include the least expensive
vehicles.
Buyers Guide
A Buyers Guide is, by law,
required to be included on
all sales of used vehicles
for dealerships. This is a
very useful and important
sheet of information, as it
holds the dealer to anything
that was agreed upon.
Information that must be
included is: what percentage
of the repair cost the
dealer will pay; the
specific parts and systems
that are covered by the
warranty. The back of the
Buyer's Guide lists warranty
term for each covered
system, measured in periods
of time or mileage; and in
states that don't allow "as
is" sales, an "Implied
Warranties Only" disclosure
is printed on the Buyers
Guide in place of the "As
Is" disclosure. Dealers who
offer a written warranty on
the used car must complete
the warranty section of the
Buyers Guide. The dealer
must check the appropriate
box on the Buyers Guide to
indicate whether the
warranty is full or limited.
Warranties are a great way
to make a used car purchase
more valuable and often give
the buyer confidence about
buying the vehicle. There
are many types of
warranties, so make sure you
choose the right one and
understand every single
aspect of the coverage.