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Everything You Should Know About Warranties for Used Cars

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24th Feb 2020




It is a well-known fact that used cars give an option to save a lot of money if compared to brand new vehicles. However, a lot of people try to stay away from the market of used cars because of a number of rumors that are floating in the market. Without any doubt, a brand new car will assure you that there will no maintenance needed in the nearest future. But everything depends on the price and the amount of money you are ready to spend on a new vehicle. If the price factor comes before the benefits of a new vehicle, then a market for used vehicles is the right choice for you.

As was already mentioned there are a lot of rumors and misconceptions associated with used cars. They encourage people to stay away from this market. One of the most common doubt people have about used cars is the warranty. They are highly interested in knowing whether everything might be covered in case if the car requires repair.

All the new vehicles come with a warranty that typically lasts for three years. When buying a used vehicle, it is crucial to check whether there is some warranty left after the first owner.  However, if you are looking to buy a car that is three or more years old, the chances that there is still some sort of warranty from the manufacturer left are limited. This chance becomes extremely limited if you decide to buy a car for cash from a private party. The following section focuses on the main things you need to know about the warranty for used cars.

  • Buyers’ Guide

According to the Federal Trade Commission or FTC, dealers are required to display information about used car warranties. This information is normally shown in the Buyers Guide displayed on the vehicle’s window. The Buyers Guide normally shows whether a car comes with a warranty or is being sold as it is. If you buy a vehicle with a warranty, the Buyers Guide should show the percentage of repair costs the dealer is required to pay as part of the warranty. It should be also said that different states have restrictions regarding the vehicles’ warranties and some of them restrict the sale of the vehicle without a warranty. 

However, it might be harder to accomplish the task of checking the Buyers Guide when buying from private parties who sell their cars for cash. Private parties are not required to have a Buyers Guide or provide a warranty.

  • Manufacturer warranty

As was already said, you might find a vehicle that is still covered by the manufacturer’s warranty. All new vehicles come with a manufacturer warranty that generally lasts for three years or is up to 36,000 miles. Ask the dealer or a private party, who sells a car for cash, for the vehicle’s warranty documents. Once you get these documents, make sure to contact the manufacturer to clarify whether the information is accurate.

  • Not all the car warranties are equally the same

You have to keep in mind that if your used car comes with a warranty then its coverage might be limited. The warranty should state clearly who is legally responsible for the repairs. It is advisable to contact the insurance company for the purpose of getting a full understanding of the coverage and what is exactly included in the warranty. This procedure is a must if you buy a car for cash from a private party.

  • Extended warranties

When buying a used vehicle, you have the option of purchasing an extended warranty or in other words, a service contract. This extended warranty means that a dealer will pay for some repairs or services on the vehicle. This service contract can be purchased at an extra cost. It should be also mentioned that these service contracts can be quite expensive, ranging from one thousand to three thousand dollars. Therefore, it is advised to estimate the possible repair costs that you might experience and the quote for an extended warranty from a dealer. Keep in mind that it might difficult to get the extended warranty is you buy a car for cash from a private party.