What Does a Used Car Warranty Cover?

Many used car owners like the lower costs of their vehicles, but miss the peace of mind and satisfaction provided by new-car warranties. But you can purchase a warranty for your used car - just remember, there's a price. Depending on your personal needs, the amount of time you anticipate owning the vehicle and the amount you're willing to spend for that peace of mind, you are likely to be able to find a used car warranty that will protect you for years or miles to come.

First thing's first

Before you even think about purchasing a used-car warranty or an extended warranty for your car, you'll need to assess your needs. There's a chance that you might not even need the additional coverage. Remember that your car came with a manufacturer's warranty. Depending on the make, model and year it was made, the car could have common vehicle features covered for several years, up to 100,000 miles, or even the lifetime of the vehicle. Be sure you investigate what is already covered on the car.

Pre-Owned warranties

Depending on where you purchase your used car, you may be offered a pre-owned warranty. Generally, dealers offer these warranties to extend the existing manufacturer warranty by one or two years. They also can be seen as a guarantee from the dealer that the car is in good condition and has been thoroughly inspected by the dealer's maintenance staff.

These "certified pre-owned" warranties are certainly nice features - you'll receive new-car benefits and warranty standards, but on a vehicle that costs less. But remember that you'll be paying for this benefit. Many dealerships will negotiate with you on the pre-owned warranty - you could offer to pay less for the car, and receive less of a warranty; or you could offer full price, but want an additional year of coverage. The warranty on certified pre-owned vehicles is often a point of negotiation, so realize that ahead of time.

Additional used car warranties

Of course, sometimes the "certified" used vehicle program isn't offered when you purchase a used vehicle. This could be because you're buying a used car at a dealership that doesn't specialize in that particular make, or you're purchasing a used car from a private party on your own. But it doesn't mean that you can't look into the option of purchasing an extended or used-car warranty.

You can go directly to the manufacturer or primary dealership in your area, and inquire as to whether you can purchase a warranty from them. Generally, these warranties will only cover vehicles that have had one previous owner. You'll likely be given a variety of options from which to choose.

Most used car warranty plans featured staggered deductibles and options - think of it like your auto insurance. You can purchase a plan with a $50 per-incident deductible, but it'll cost you. Conversely, you could find a plan with a $150 deductible that will have a lower premium.

The older your car, the more expensive the warranty. Most plans have increased costs at 40,000 miles, 50,000 miles, and so on. Remember to factor in your car's existing manufacturer's warranty when evaluating your desires for a used-car warranty.

Beyond varied deductibles and costs depending on mileage, your warranty also can vary greatly depending on the features you want. Some warranty companies will offered plans labeled "platinum," "gold" and "silver," each of which has a different level of coverage. Some will provide a towing service should your car break down, others will simply only cover main features such as your transmission. All will delineate specifically which features are excluded, such as your vehicle's interior, radio switches, or fluids. Be sure to read carefully to determine what is covered, compare that to what you need, and then determine whether a used car warranty is the best deal for you.