Do Used Cars Have Warranty Coverage? Everything You Need to Know

Posted Friday, May 26, 2023

Purchasing a new car typically comes with the assurance of a warranty, but what happens when you buy a used car? Are you protected in case of a mechanical problem? Here's everything you need to understand about used car warranties, including what damages are covered, their cost, and tips to help you make the best decision when shopping for a used car warranty.

 

Do Used Cars Come With A Warranty?

 

Whether or not your used car comes with a warranty depends on several factors, such as the age and mileage of the used car, and the dealership or private seller from whom you purchase it.

 

Some used car dealerships provide warranties for the vehicles they sell, which may provide coverage for some or all components of the car, depending on the dealership's policies and the car's overall condition.

 

It is also common to find used cars "as is". These vehicles do not have any type of warranty, so you bear the cost of any repairs or problems the car suffers after you buy it. In this case, it is a good idea to have the car thoroughly inspected before you buy it and to be properly informed of the car's condition.

 

It's worth noting that in some cases, a used car may still have the remaining portion of its original manufacturer's warranty. This could occur if the car is relatively new and hasn't exceeded its mileage or time limit. Additionally, some previous owners may have purchased extended warranties for their cars, which could still be in effect and transferable to a new owner.

 

How Does a Used Car Warranty Work?

 

A used car warranty can provide peace of mind when purchasing a pre-owned vehicle. There are several types of warranties available for used cars, and each functions differently.

 

Some used cars may still have the remaining portion of their original manufacturer's warranty, commonly referred to as the remaining new car warranty. This type of warranty typically covers the vehicle's major components for a certain period, such as three years or 36,000 miles, whichever comes first. If the used car is still within the warranty period, any repairs covered under the warranty will be performed at no cost to the owner.

 

Some manufacturers offer Factory-Certified Pre-Owned programs. These programs provide additional warranty coverage beyond the remaining new car warranty for a specific period or mileage limit. For example, a Certified Pre-Owned car may come with an additional one or two years of warranty coverage or up to 100,000 miles, depending on the program. Typically, a Certified Pre-Owned car has undergone a thorough inspection and meets certain criteria set by the manufacturer, providing the owner with added assurance that the car is in good condition.

 

If your used car is no longer under warranty, you can opt for an extended warranty from dealers or insurance companies. Depending on factors such as mileage and maintenance history, you may qualify for comprehensive coverage, while other plans may cover only certain parts.

 

Used Car Warranty Coverage

 

What your used car warranty covers can range from repairing or replacing certain parts of the car such as the suspension, or air conditioning to comprehensive coverage of all components of the vehicle. The warranty will typically cover electrical damage and mechanical failures such as wiring problems, or engine water pump failure. However, most used car warranties do not cover damage caused by misuse, neglect, or modifications made to the vehicle.

 

It's worth noting that while used vehicle warranties can provide valuable coverage for unexpected repairs, they typically exclude routine maintenance such as oil changes, tire rotations, and windshield wipers. It's important for owners to keep up with regular maintenance to maintain their vehicle in good condition and prevent more costly repairs down the road. Some warranties may require proof of regular maintenance to keep the coverage in effect, so it's important to keep records of all maintenance performed on the vehicle.

 

Used Car Warranty Cost

 

The cost of the warranty will vary depending on the characteristics of the car such as mileage and age, the type of coverage you choose, the deductible amount, and the particular conditions of the warranty. The older the car or the higher the mileage, the higher the price of the warranty. Likewise, if you want to have full coverage, it will be more expensive than if you only cover some parts. On average, the price of the warranty is between $1,600 and $3,500, which you can pay in $80 to $200 monthly fees.

 

Tips to Keep in Mind When Shopping for a Used Car Warranty

 

• Know the vehicle's history in depth. Have it inspected to rule out any major problems.
• Research different providers and compare prices and coverage options.
• Read contracts carefully and question any terms you don't understand, especially when it comes to costs and warranty conditions.
• If you are on a limited budget, prioritize a warranty that covers the parts of the car that are most expensive to repair.

 

Is a Used Car Warranty Worth It?

 

To determine if your used car is worth protecting with a warranty, you should think about what kind of car it is and how long you plan to own it, what you plan to use it for, and what kind of warranty you can afford. If you plan to have it for a long time, go on road trips, and have the budget to cover at least the vital parts of the car, having a warranty on your vehicle may be an excellent option for you.

 

You must weigh whether it is more cost-effective for you to pay for any damage your car may have at the time a problem arises, or if it is better for your pocket for a warranty plan that will protect you at any time. In some cases, the peace of mind of knowing that you won't have to make a huge expense for repairs unexpectedly makes buying a warranty worth it.

 

Ultimately, investing in a dependable car is key to avoiding costly repairs down the road. Lux Auto Centre offers a range of high-quality vehicles that are both safe and reliable.