If you’re in the market for a used car, you’ll probably want to know what — if anything — might be covered by a warranty in case you need repairs in the future.
New cars typically come with manufacturer warranties. But if you’re buying a used vehicle, it’s crucial to check if there’s some sort of warranty and what it might cover. You’ll want to examine any warranty closely to see whether it’s worth the extra cost, if it’s one you’d have to purchase separately.
When we refer to “used car warranties,” we simply mean any kind of warranty you might get for a used car — whether it’s backed by a manufacturer or dealer.
5-Things to Know about Warranties on Used Cars:
1. For warranty details, look to the ‘Buyers Guide’
Information about any used car warranty should be available in what’s called a “Buyers Guide.” Dealers are required by the Federal Trade Commission, or FTC, to display this in used cars that are for sale. You can usually find the Buyers Guide displayed on the car’s window.
2. The manufacturer’s warranty may still apply
There’s a chance that a manufacturer’s warranty still applies when you buy a used vehicle. You may be able to find this under the “systems covered/duration” section of the Buyers Guide.
To reap the benefits of any warranty that’s included, you have to know what’s in it and confirm that it’s transferrable. Ask the dealer for the vehicle’s warranty documents. Once you look over what’s covered, along with other details like the expiration date/mileage, you can reach out to the manufacturer to verify it’s accurate.
3. Not all car warranties are created equal
If your vehicle does come with a used car warranty, the coverage may be limited.
The warranty should give specifics on the vehicle service contract and explain who is legally responsible for the repairs. Look over the fine print to get all the details and make sure all of your questions are answered before you buy your vehicle.
4. Are extended warranties worth it? It depends.
When you purchase a used vehicle, you may have the option to purchase a service contract, also known as an extended warranty. With a service contract, the dealer agrees to perform or pay for certain repairs or services on the car. You can buy the coverage for an extra cost.
5. Newer Cars = Better Coverage
While you are not only saving money by buying sooner rather than later, you also qualify for the very best coverage. How can you say “no” to lower-priced, better coverage warranties on used cars?!