Get your FREE extended auto warranty quote! RoadLoans - Auto Finance Made Easy! Car loans for people with bad credit!

Used Car Warranties

by craigscars


Save Thousands on Auto Repairs
There are generally three types of warranties for used car purchases the factory warranty, an extended warranty and a specific component warranty. The factory warranty is issued by the manufacturer and supported by the manufacturer’s network of dealerships it has been my experience that these warranties are usually easy and painless to use if something goes wrong. The second type of warranty is an extended warranty that is purchased on the vehicle by the owner usually when buying it from a dealership or else online. A specific component warranty would cover an item that was recently serviced like a transmission rebuild might have a 1 year parts and labor guarantee. In this post we are going to discuss all 3 of these types of vehicle warranties. But always remember if you are considered about an existing warranty and it is a consideration for you buying or setting the price for a vehicle, call the provider or check the paperwork and make sure it is transferrable.

In the case of factory warranties that are one issued to the original owner when the car is bought new this is usually a painless process. Let’s say you are looking at a car you found on Craigslist. It is only 2 years old with 20,000 miles. The question is what happens with the factory warranty? In most cases the factory warranty stays with the car not the original owner. In other words you will be covered if something goes wrong. This is true with most of the factory warranties. Most of these warranties transfer free of charge but some due have a transfer fee. There are things however that can void a factory warranty such as; if the car has been in an accident, modified or if it has been used for a rental, racing or a work vehicle (plowing etc.). It is always best to contact the dealer or manufacturer directly to confirm the warranty is still valid and to see if there is any fee involved in the transfer. In most cases though, if something goes wrong within the time and mileage limitations and you own the car, just bring it to the dealer and they will take care of it.

Extended warranties that are purchased after the factory warranty wears out are a different story however. If a vehicle has an extended warranty on it and the owner is using it as a selling point, I would get the information about the warranty and do some research to confirm that is transferable and from a reputable company. You also do want to find out if there is a fee for the transfer. Remember that you can always buy an extended auto warranty on your own so be careful before you pay extra for someone elses purchase.

Specific component guarantees are usually issued after a certain repair was performed-a new starter was put in or the transmission was rebuilt. The 2001 Honda Accord we just bought recently had a new clutch put in that had a 1 year parts and labor guarantee. The owner had the paperwork from a reputable shop that spelled out the time frame and that it was transferrable. These types of guarantees are nice to have if nothing else to show that if you are buying a car that has had major repairs done recently, the shop that did the repairs stands behind their work.

That is all I have to say about warranties right now. If you have any further questions be sure to contact us.

Thanks, Pat

Leave a Comment

Previous post:

Next post: