A used car warranty is a protection plan, usually offered by a third-party company to cover a vehicle after an original manufacturer’s warranty has expired. In some cases, a used car may still be covered under the original manufacturer’s warranty. Let’s explore used vehicle protection plans and all they entail.
A used vehicle protection plan covers repairs or replacements on specific vehicle components for a certain period of time. There are many types available. Sometimes they are worth it and other times, not so much. Let's have a look at the various types of used car warranties available, the terms and coverage they offer, and how to find the best warranty for your needs.
Most used vehicles do not come with a warranty attached. Instead, they are most often sold “as-is.” Sometimes, a used car happens to still be covered under a manufacturer’s original warranty, but these cases are relatively rare.
"As is" means a used vehicle is being sold without any warranties. The seller is not responsible for any problems with the car, and the buyer is accepting the car in its current condition, including the risk of any undisclosed defects.
It's a good idea to have a used car inspected by a mechanic before purchasing. That way, a buyer can identify any potential problems or issues.
Some used vehicles may still have warranty coverage under the original manufacturer's warranty. Certified pre-owned (CPO) vehicles typically come with an original manufacturer's warranty, and private party vehicles may as well—especially if they are fairly new. Here are 3 steps you can take to check if a used car is still under the original manufacturer’s warranty.
Lemon laws are consumer protection laws that protect buyers of defective vehicles. These laws generally apply to new vehicles that have a significant defect. Most states do not have lemon laws for private vehicle sales.
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When considering purchasing an extended warranty for your used car, there are four main factors. Whether or not it’s worth it to you will depend on where you fall in scheme of these.
We know—this doesn’t give a definitive answer about whether a protection plan is worth it or not. But that’s because we don’t know your situation.
You can also consider mechanical breakdown insurance (MBI) in lieu of buying an extended warranty. You can get MBI as an add-on to your auto insurance policy. Most insurance companies offer MBI plans as low as $30-100 per year, depending on the year and mileage of the vehicle.
There are several types of used car protection plans or warranties. Some cover specific components, while others cover the entire vehicle.
Generally, when people talk about used car warranties, they are referring to the last point above: third-party warranties, which are more accurately termed protection plans.
Third-party protection plans can offer decent coverage, but do your research to know what’s covered by them; then compare the cost of the plan against any potential repairs.
Some issues and ideas you might consider when evaluating used car protection plans:
It's also a good idea to read reviews and ask for recommendations from friends or family members who have purchased a used car warranty from a third-party company.
Top used car warranty companies include CARCHEX, Endurance, Concord Auto Protect, and Omega. All of these offer fairly reputable extended warranties, so if you’re thinking of purchasing an extended warranty, feel free to check them out and get car warranty quotes. As with any warranty company, make sure to read the fine print and know your terms and conditions.
There are many other companies offering used car protection plans, but always do your own due diligence. You want to purchase a protection plan from a reputable, stable company that will honor the terms of the warranty.
According to Endurance, used car warranties usually cost between $350 and $700 per year. Costs vary significantly based on the following factors:
Type of coverage Length of the warranty period Exclusions and limitations of the coverage Reputation and financial stability of the company Age and mileage of the car Make and model of the car Location Deductible amount (if applicable)
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Used Car Warranty FAQ
A used car warranty is a protection plan that covers repairs or replacements on specific vehicle components for a certain period of time. These warranties are often offered by car dealerships as an added incentive when purchasing a used car, but they can also be purchased separately from third-party companies.