Can you get a used car warranty?

Used cars have long been popular due to their affordability. If you’re planning to buy a used car, one of the most important things to check for is the used car warranty. Unfortunately, not all secondhand models have an extended warranty for used cars included, but you can choose to purchase a used car warranty yourself. Finding cheap auto insurance for veterans can help you afford the extra cost of a car warranty.

Keep reading to learn more about your used car warranty options, from how to get a used car warranty to used car warranty costs.

Types of Used Car Warranties

Sometimes, you may not need to purchase your own warranty, as state laws require dealers to provide implied warranties if their used cars don’t meet certain standards to protect buyers. These are essentially unwritten and unspoken promises that dealers make to their buyers.

Generally, even if a used car doesn’t have a written warranty, it’s still covered by an implied warranty. The only exemption will be if the dealer explicitly states that the sale is “as is” or “with all faults.” To better understand how it works, here are the two common types of implied warranties:

• Warranty of Merchantability. This warranty asserts that the used car will run as expected. Of course, it doesn’t mean that you’ll get a perfect car, but it does promise that the car will work as intended, given its condition and age.
• Warranty of Fitness for a Particular Purpose. This warranty applies in cases where a dealer recommends a used car and promises that it’ll work for your intended purpose.

Sometimes, the original manufacturer’s warranty may still be in effect when you buy a used car. Is a used car warranty transferable? If you see it, ask the dealer for the warranty documents to verify if it’s transferable and check for details like coverage, locations included, and others.

Most warranties will be able to be transferred to you, the new owner. If your used car doesn’t come with a warranty, take a look at the different types of warranties below.

Types of Used Car Warranties

There are a few different types of used car warranties, such as:

• Used car bumper-to-bumper warranty: Covers the most important parts of your car, such as the steering system.
• Used car powertrain warranty: Covers the important parts of your car that contribute to its movement, such as the engine.
• Used car drivetrain warranty: Covers parts like axle shafts and wheels.
• Corrosion coverage: Covers rust and corrosion on a car.

Consider what is best for your car and your budget when choosing among used car warranties.

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Cost of Used Car Warranties

You will need to pay extra to get used car warranties. Similar to auto insurance rates, warranties can vary based on the car’s make, model, and condition. Some companies may charge an upfront fee ranging from a few hundred to a thousand dollars, while others may charge monthly payments.

Likewise, coverage levels can differ per contract and provider, so comparing rates across providers is important before deciding on anything.

Getting quotes from a few different companies will help you find the best deal on used car warranties.

Best Used Car Warranty Companies

Some of the best car warranty companies for used cars to take a look at are as follows:

• Endurance
• CarShield
• CARCHEX

There may be other providers of used car warranties in your area, but these are some of the better-known used car warranty providers. Whatever company you choose, make sure to read a few used car warranty reviews before signing up.

Should you get a used car warranty?

Is a used car warranty worth it? If you’re not sure about getting an extended warranty for your used car, here are some key factors to consider in your decision:

• Coverage and time left in the existing warranty (if applicable)
• Vehicle condition, reliability, and mileage
• Service contract costs compared to common repair costs
• Length and coverage of the service contract
• How often do you plan to keep the car
• Reputation of the dealer or company offering the service contract

Overall, service contracts are a great option if you buy a used car with no warranty since they can mitigate financial risks on your end. However, it’s important to weigh the situation carefully to see if you get more benefits in the long run. For example, if you don’t plan to keep your car for long or it is still in good condition, you might not need to spend on this optional plan.

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Alternatives to Warranties

One popular alternative to a service contract is mechanical breakdown insurance (MBI). You can get this optional plan on top of your basic auto insurance to cover major malfunctions. These include critical parts like the engine, brakes, drive axle, transmission, exhaust, and electrical components. To make sure you choose a good company, make sure to check out our guide to the best companies for veterans auto insurance.

If you feel like your car is in good condition or don’t have the financial capacity to pay for a service contract or MBI, you can set up an emergency fund for repairs instead. Apply for a new savings account and deposit money monthly — or whenever possible. This way, you have dedicated funds ready if your car needs emergency repairs.

You can also choose to lease a car, as leases come with car warranties. Read our guide to car leasing with insurance to learn about leasing vehicles. If you lease a car, you will have to make sure to keep up with regular maintenance, as not doing so could void your lease’s warranty. You will also need to carry full coverage auto insurance, which is more expensive but does offer better financial protection (Read more: Full Coverage Auto Insurance for Military and Veterans: Advantages and Disadvantages).

Can you get a used car warranty? The Bottom Line

Purchasing a used car is a great option to invest in a vehicle without burdening your finances. However, just like how you’d inspect the condition more thoroughly, you should also verify the manufacturer’s warranty details before purchasing.

That said, there’s always the chance that you find a used car that no longer has its original warranty. In such cases, you can consider alternatives like mechanical breakdown insurance or cash savings.

If you want to find good insurance that offers mechanical breakdown insurance for a reasonable price, use our free quote comparison tool to shop at companies in your area.

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