Five Facts You Should Know about Used Car Warranties

Five Facts You Should Know about Used Car Warranties

Five Facts You Should Know about Used Car Warranties

New cars usually have warranties to cover any issues. If you are interested in a used car, you should check to see if there is a warranty and what it will cover. If you need to purchase it separately, you want to make sure it is worth the extra cost. Here are five items to consider when shopping for a used car:

Manufacturer Warranty

Depending on the age and mileage of the used car, the manufacturer warranty may still apply. Warranties typically cover the first three years or 36,000 miles, whichever comes first. Confirm with the dealership that the warranty is transferable. If you are still unsure, you can always contact the vehicle's manufacturer.

Extended Warranties

When purchasing a used car, your dealer may offer you a service contract, also known as an extended warranty. This means that the dealer will pay for specific repairs on the car. There are some factors to consider whether an extended warranty is worth it. For example, the cost of the warranty might be more than if you paid for the repairs yourself.

Consider Alternatives

If you do not like the idea of a car without a warranty or the cost of paying for one is too high, there are other options to consider. For example, you can set aside money for any repairs that may come up. Another option is to lease a car instead of buying. Your leased vehicle may have a warranty to reduce the chance of unexpected spending.

Check Out the Buyer's Guide

Dealers are legally required to have a Buyer's Guide available for every used car they are selling. It is usually located in the driver's side window, but ask if you do not see it. The Buyer's Guide explains if the advertised car has a warranty or is being sold as-is. If the vehicle does have a warranty, the Buyer's Guide will list how much the dealer is required to pay for repairs.

Not All Warranties Are the Same

Even if a used car does have a warranty, it might have limited coverage. Check out the fine print for information such as who is responsible for repairs and up to what amount. If your car warranty comes from a third-party company, look into the company's policy and overall rating.

In Conclusion

When it comes to buying a used car, you want to see if there is a warranty available and if so, what are the details of the contract. If there is no warranty, you can consider buying an extended warranty or covering repair costs yourself. Be sure to think about your monthly budget and what you can comfortably afford to spend on car payments and maintenance.