Richmond Toyota

Used Car Warranties

Today, it is common for later model vehicle to be offered with a warranty, unless they are sold through a private sale.  When signing for a warranty, know exactly what it covers; another option is extended warranties. They generally cover repairs for a longer period than the manufacturer's drive train warranties.   You must know and understand every aspect of your warranty, so don’t be afraid to ask questions you may think have an obvious answer; can service be performed at a repair shop of choice, or only by certified repair shops designated in the policy? Is there a co-pay? Are all the parts covered?  Used car warranties are available from main dealers or from warranty specialists.  By dealing with a warranty company directly, you my save money, and always shop around; prices very greatly.  Most used car warranties require you to have your used car serviced according to the manufacturer's schedule but you should be able to take your car to any garage for servicing and repairs.

The Buyers Guide

All used car dealers must post a "buyers guide" in the window of each vehicle for sale.  This is a federal requirement.   This guide lets the potential buyer know if there is a warranty included or if the vehicle is being sold "AS-IS" with no warranty of any kind.   With an "AS-IS" sale, once you drive the vehicle from the dealership, the cost of repairs is your responsibility.  This is a very useful and important sheet of information, as it holds the dealer to anything that was agreed upon.  Information that must be included is: what percentage of the repair cost the dealer will pay; the specific parts and systems that are covered by the warranty. The back of the Buyer's Guide lists warranty term for each covered system, measured in periods of time or mileage; and in states that don't allow "as is" sales, an "Implied Warranties Only" disclosure is printed on the Buyers Guide in place of the "As Is" disclosure. Dealers who offer a written warranty on the used car must complete the warranty section of the Buyers Guide. The dealer must check the appropriate box on the Buyers Guide to indicate whether the warranty is full or limited.

As Is - No Warranty

When a used car is sold "as is," this means that once the car is taken out of the lot, the owner is responsible for all repairs.  Some states don't allow "as is" sales for many used vehicles.   This type of purchase for a used car may be risky, but it also will include the least expensive vehicles.

Implied Warranties

This is basically an unspoken and unwritten promise, and it holds dealrers responsible if used cars they sell don't meet reasonable quality standards.  There is no specified time period for implied warranties. The most common type of implied warranty is the warranty of merchantability: The seller promises that the product offered for sale will do what it's supposed to. It does not cover everything that could go wrong.  A dealer's liability on the used car is judged case-by-case.  When a dealer sells a vehicle with a written warranty or service contract, implied warranties are included automatically. The dealer can't delete this protection. Any limit on an implied warranty's time must be included on the written warranty.

Manufacturer’s Warranty

Some newer used cars still have a remainder of their original manufacturer’s warranty on it. Most new cars are sold with a three-year/36,000-mile warranty. So, if you buy a car that is from one to three years old, it will still be under the factory warranty.  If there is anything wrong with the car when you bought it, the problem will be fixed for free, and this is huge for used cars.  If you purchase your used car from a private sale, and it is still under warranty, make sure it is transferable to a new owner.

Full Warranty

What's covered by the warranty of a used car depends on the car and what the company has offered.  A full warranty includes the following: Anyone who owns the vehicle during the warranty period is entitled to warranty service.  Warranty service will be provided for free.  You have the choice of replacement or a full refund if the dealer can't repair the vehicle.  Coverage on  used cars often excludes wipers, fluids, belts, tires, battery, accessories, and windows.

Limited Warranties

A limited warranty means the used car has certain conditions and limitations on the parts covered, types of damage covered and/or time period for which the agreement is valid.  Most used car warranties are limited, and their coverage varies. Some parts or systems may be covered by a full warranty, while others are covered by a limited warranty.

Extended Warranties

An extended warranty may be offered as an option on used cars, but be cautious of these.  If you do purchase an extended warranty, make sure understand what all coverage means and make sure it covers both breakdown and wear and tear and it is effective the day you purchase it.  It should come from a well-funded and insured car warranty business.

Service Contracts

A service contract provides repair and/or maintenance for a specific period, cost extra and are sold separately. Make sure the service contract on the used car does not duplicate the warranty coverage.  You can determine the value of a service contract by figuring whether the cost of repairs on your used car is likely to exceed the price of the contract. The service contract covers all parts and systems.  Again, understand all claims, as some terms can be confusing.

There are many variations of warranties that can cover a used car.  Make sure before you sign any contract, you have had any questions answered and you have read all the fine lines.  As long as you are getting coverage to suit your needs, warranties are a great way to make a used car purchase more valuable and often give the buyer confidence about buying the vehicle.