Buying a new car, used or new, will represent a significant chunk of change for most families. A warranty goes a long way in protecting your investment because it includes the price of both parts and labor. A good warranty can give you peace of mind, knowing that you’re not taking a major risk when buying a used car. You never know what the car has been through in the past.
In simple terms, a warranty serves as an agreement between the buyer and seller that all repairs (or most repairs) will be covered during a specific period of time in the event of a malfunction or equipment failure. Without a valid warranty, you will have to pay high repair bills out of your own pocket.
While it is true that most modern cars are designed to be incredibly robust, durable, and efficient, it is rare for them not to run into problems. Even regular servicing and inspections may not be enough to prevent equipment failure. You can never predict equipment failure. Even the most reliable cars will, at some point, break down and require repairs.
Things To Know About Used Car Warranties
The solution is a used warranty that can protect your investment. Let’s take a closer look at why a car warranty is so important for used cars.
Protection from Unexpected Repairs
Car repair and maintenance can be extremely expensive. The costs go up if you have to pay for a critical repair, which is the easiest way to quickly lose all your savings. A warranty on a used car can protect you from unexpected repairs. Think of it as an insurance policy that saves money if your car fails.
Just read the warranty with a fine-tooth comb to see what is covered and what is not. Some warranties have time or mileage limits, and others only cover certain vehicle parts. Not knowing the extent of your warranty is bad because you may find yourself stuck with a hefty repair bill that the warranty won’t cover.
Although a warranty doesn’t mean you can skimp out on regular maintenance and care, it can give you peace of mind knowing that your investment is protected from expensive repairs. So if you're in the market for a used car, make sure to ask about the warranty. And always ask to try to understand what exactly is covered by the warranty. Knowing the fine details could save you a lot of money.
Better Resale Value
A major problem with used cars is that they have gone through severe market depreciation. This means it can be difficult for you to sell the car in the future if you decide to upgrade. A used car warranty is a great way of increasing the resale value of your car because it provides the buyer with peace of mind.
The car's warranty is also a good indicator of its working condition. Many prospective buyers will ask you for a warranty before purchasing your used car.
It Shows that the Dealer is Confident in the Car
People don’t give warranties if they don't have confidence that the car won’t break down. The fact that the seller is giving you a warranty shows that the car is in good working condition and is not likely to fail.
A Longer Lasting Vehicle
It’s hard to tell how the car has been used by its previous owner and what kinds of repairs it has seen in the past years. Some sellers may be honest about the condition of their vehicle, and others may hide certain flaws from you. These flaws have a way of revealing themselves when you least expect them.
A used car warranty will cover repairs and maintenance costs, so you won’t have to worry about losing your money. If the car ever breaks down, getting it repaired will be easy. This also ensures that your used cars last as long as possible.
Warranties Also Cover Labor
Warranties are important because they cover the price of both parts and labor. This is important because labor can be costly. Experienced technicians can charge a premium for their knowledge and skills. For example, replacing the engine in a used car may cost upwards of $2,000 for the labor alone. This is why it’s important to ensure that the used warranty covers both parts and labor.
Types of Warranties
There are several different types of car warranties. Some warranties only cover the basic parts of the car, such as door handles and mirrors. It is also possible for the warranty to be voided if the car has been in an accident, or you may have to do the repairs yourself. In reality, a lot can go wrong with a second-hand car..
Below is an example of a warranties that may be offered:
1. Powertrain Coverage
This warranty covers the components that allow the car to move. This includes the engine, transmission, clutch, and others. These parts tend to be very expensive to repair and replace, so having this type of warranty is extremely important.
2. Bumper-to-Bumper Warranty
This is a comprehensive warranty that covers nearly everything in the car. You may think that it covers all parts of the cover, but there may be a few exceptions. Make sure to read the warranty from cover to cover to understand what is not covered. Most bumper-to-bumper warranties don't last long and only cover a used car for about 10,000 miles.
3. Basic Warranty
As the name suggests, a basic warranty only covers the most basic parts of a car, such as a mirror and door handles. Things like the transmission and engine are not typically included in a basic warranty. Most basic warranties will last 36,000 miles or three years, whichever one comes first.
4. 30-Day Warranty
Some dealers provide a short 30-day warranty on used cars. This is usually done for the purpose of checking the car and all its parts during the three days.
