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Warranty Information About Used Cars

By Odet Garcia Updated: 05/23/2019 Posted: 12/04/2018

When you purchase a used car from a private party, it is not going to come with a warranty. You are purchasing the car as is and based on the seller’s representation of the vehicle. Now, when you purchase a used vehicle from a dealership, you may receive a warranty. While it may be not be common, it is not uncommon or unheard of either. Below it’s what you need to know about warranty information of a used car for sale at the dealership.

Ford Escape

As-Is – No Dealer Warranty

When purchasing a used car, you will likely see a sign that says it is sold as-is. This is common practice and as mentioned above, most do not come with any type of warranty. If a vehicle is going to be sold as-is, the dealership must disclose this to you. The salesman may not say anything to you about it. However, there will be a box checked on the window sticker that reads, “As Is – No Dealer Warranty.”

Implied Warranty Information

An implied warranty is basically your small ticket to some protection should something happen to your car. Most states have laws that require dealers to sell cars that meet a quality standard. This reasonable standard is an implied warranty and does not have to be written down or even spoken about.

To get out of an implied warranty, the dealership would need to provide you with a document. This document sells the car as is or sells it with all faults.

Further Reading

  1. Everything You Need to Know about Buying Used Cars
  2. How to Buy a Used Car Safely: What the Experts Say
  3. Buying Cars from Auctions: Common Terms Used at Auctions

Full and Limited Warranties

Sometimes, dealerships do offer warranties with used cars and these are referred to as full or limited warranties. These will often cover all the car or some of the major components of the car.

It is important to pay attention to any full or limited warranty you are offered. They often come with terms and conditions that must be met. For example, the terms may be that you must have all oil changes done within the specified timeframe. If you don’t, then your warranty is voided.

Extended Warranties

Extended warranties are those that extend beyond the initial warranty period. For example, if your used car came with a limited warranty, the extended warranty kicks in once the limited one is up.

When purchasing an extended warranty, you will find that there are many different types available from bumper-to-bumper to up to 200,000 miles and an array of other combinations.

Additional Warranties

There are several other additional warranties that you can purchase and while they are deemed warranties, they are not the same in the sense of they cover the engine or transmission if there is a problem.

These types of additional warranties cover things such as roadside assistance services, emissions repairs, and corrosion protection.

Service Contracts: What Are They?

A service contract is often referred to as an extended warranty from the dealership, but it is not a warranty. A service contract is a type of contract between you and the dealerships that states the dealership or approved third-party repair shop will help you fix or maintain your used car for a specified number of months.

These contracts do not come with the vehicle and are not free either. They will cost you extra money and are either due at the time of purchase or they are tacked onto the car loan that is financed through the bank or dealer.

Sometimes, service contracts cover what is included in a warranty and sometimes they do not. You must weigh your options to determine if the service contract is worth it to you.

As you look at the service contract, keep in mind that you do NOT have to buy it. If you feel it is too expensive or not worth it, you can pass it up. Do make sure that the lender who finances your loan does not require a service contract and do not allow the salesman to push you into purchasing one if you do not need it. Look over your contract carefully before you sign it as some salesmen will sneak the service contract in there.

Auto Warranty Scams – How to Avoid Them

There are companies and individuals out there who will try to scam you and tell you that you are guaranteed warranty coverage for your used car when you are not. Often, consumers receive mail and phone calls about extended warranty coverage on the vehicle and the companies that call or send you mail are wanting to sell you a plan.

It is important to keep in mind that these extended warranties or service contracts sell for hundreds, if not thousands, of dollars and you will be responsible for paying it up front.

Calls from companies about service contracts usually include high-pressure sales and you may feel obligated to purchase one. Remember that it is not required by your loan provider and you can get a service contract through the dealership, should you choose this route.

One of the tactics that these companies like to use is to tell you that your used car’s warranty is almost out of date or about to expire. Take a moment to check your records and paperwork because it is likely that it is nowhere near the expiration date.

Another quick scam is fast-talking telemarketers. This scam works by talking so quickly that you only hear bits and pieces of information. As you put together that information, the service contract sounds good but, it is nothing more than a waste of your money.

Lastly, NEVER give out any personal information about you or your financials to anyone on the phone or through the mail. The dealership and vehicle manufacturer will never contact you via the phone to inquire about your personal or financial information.