Do Used Cars Come with Warranty?

Rahul Jha
Rahul Jha

Updated on: 29th February, 2024 IST

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While new cars come with a standard warranty cover, one can even buy used cars with warranty. But there's a catch. Unlike new cars, second-hand vehicles have no default cover, and one needs to buy an extended warranty from a third party for used cars. And only some used car dealers provide this. More importantly, when buying from an individual seller, you must check with used car dealers and firms involved in pre-owned cars. So before opting for a warranty on a used car, it is important to understand its significance and how it helps an individual in the long run. 

Car warranty meaning

Let's first understand how a car warranty works. Like any other product, cars also come with a warranty, which is a written assurance the seller provides to the buyer. It promises to replace/repair the vehicle/parts in case of a breakdown, but these, too, come with predefined terms and conditions. It's advisable to go through these before buying an extended warranty for your car.

Factors such as vehicle age, make and model, and present condition also affect the kind of extended warranty you can purchase. 

Read More : Should I buy extended warranty for used cars

What are different types of warranty?

Each country has its own set of warranty plans, for instance, one gets a plethora of extended warranty options on a second-hand car purchase in developed markets like the US. In India, a used car warranty can be divided into three broad categories:

1. Manufacturer Warranty

All new cars come with a basic warranty from the manufacturer, and it's even transferable to the second or third owners while selling the vehicle if it's still in the warranty period. It covers all major components of the car against any manufacturing defect, except those that are subjected to regular wear and tear, such as brake pads, clutch and pressure plates, electric bulbs and rubber pipes. It is not a hidden fact anymore that any damage caused due to reckless driving is not covered under any warranty.

2. Dealership Warranty

Used car dealers have started offering cars with a warranty cover. Although it is less comprehensive than the manufacturer's warranty, it still covers a few specific parts of the vehicle. However, you should be careful and look closely at the "terms and conditions" section that might have clauses binding you to get the car serviced only at select service stations. Furthermore, the dealer might even charge you for this warranty, which is not the case with the basic warranty provided by the manufacturer.

Read More : Car Insurance Policy – Everything You Ever Wanted to Know

3. Extended Warranty

Also known as the aftermarket warranty, it covers the vehicle for an additional period of time once the basic warranty expires. Every company provides extended warranty options that a new car buyer can avail of. Some manufacturers or dealerships even throw in an extended warranty package for free in order to entice customers. At times, the extended warranty might not be as comprehensive as the standard warranty, but it isn't a bad idea to opt for one to secure yourself from risks in the long run. 

Do used cars have a warranty?

Buying used cars with warranty reduces the chances of a hefty expense should there be a breakdown. Given that second-hand cars have already been used by the original owners, having a warranty cover to protect yourself from unforeseen parts failure is a good idea. 

Usually, a used car warranty comes with free vehicle service, including repair of systems that might fail prematurely. These generally cover steering, brakes, exhaust systems etc. If the dealer can't fix the car, you can even request a full refund. However, it should be noted that this warranty is limited. The inclusions and exclusions of the warranty cover will be listed at the time of selling the vehicle. 

Read More : Can I Sell My Car Without Insurance Cover?

What does the used car warranty cover?

Buying used cars with a warranty is a sensible option, but these covers aren't as comprehensive as what you get with new cars. Used car warranties usually cover all parts of the engine and transmission but miss out on electricals. With cars getting older, chances of high wear and tear and parts failure are higher. Hence, the dealers refrain from offering a blanket warranty cover on second-hand cars. Other parts that are usually excluded from the warranty cover include sensors, electrical components, starter motor, fuel pump, alternator, steering system, suspension components and air conditioning. Some dealers might still offer a warranty on some of the aforementioned components. However, in most cases, pre-owned cars have a limited warranty coverage due to their age and condition.  

Is buying an extended warranty on a used car worth it?

It goes without saying that purchasing a used car is, more or less, a sensible decision. This is because buying a used car is easier on the pocket and doesn't depreciate as fast as a new car. Moreover, for the same amount of money, one can buy a more premium used vehicle than a new one. However, it's very important to consider the condition of a used car before deciding on a purchase. 

Over the years, many components of a vehicle suffer from routine wear and tear, which subsequently affects performance and reliability. Also, any sort of maintenance work would incur an expenditure. Therefore, in such a case, buying an extended warranty on a used car makes great sense and is totally worth it.

Read More : Relation between Insured Declared Value and used car price

Importance of used car warranty

In the points listed below, we tell you the importance of used car warranty:

1. Peace of Mind

Having used cars with warranty is a huge benefit that ensures you don’t need to spend your time and money. The warranty gives you peace of mind as the vehicle is covered in case of a breakdown. Even if immediate maintenance owing to unnatural wear and tear is needed, then also it is not troublesome. While a second-hand car might look in perfect shape at the time of purchase, there’s always a chance of things going downhill during its ownership. In such a case, having a warranty that covers key parts of the engine and other systems is highly useful.

2. Immunity from Expensive Repairs

A brand-new car you buy from a showroom is less likely to break down than a used car that has logged thousands of miles. The latter is more likely to require frequent maintenance work. As the used cars have already been through some wear and tear, the chances of parts failure get significantly higher. At times, the reason behind one selling his vehicle is the frequent maintenance work it requires. To protect yourself from such unexpected expenses, opting for an extended warranty becomes highly necessary. Through this, you can continue to enjoy your used car for a long while without worrying about any expensive repair work that might crop up. 

3. Product satisfaction

Buying used cars with warranty leads to higher satisfaction. As the warranty cover guarantees a stress-free ownership experience, it leads to higher customer satisfaction. Giving your car to the seller instead of a local mechanic would mean there are less chances of a shoddy repair job or usage of substandard parts. This is because the seller would want to fix your car for free in the first instance instead of having to fix it time and again under warranty. This is something that is not only beneficial for your peace of mind but also for the vehicle. In addition, having a car warranty also helps in getting a higher price when you decide to sell your vehicle. 

FAQs

Q. Can I buy an extended warranty later?

In many cases, a carmaker provides an option for owners to buy extended warranty even till many years after they’ve purchased the vehicle. However, this varies from one manufacturer to another and hence, you’re requested to check with an authorised dealer near you.

Q. What is the car warranty period?

Most car dealers provide warranty cover of 2, 3 or 5 years and up to a certain mileage. However, most carmakers even offer an extended warranty cover for an extra cost. That said, the warranty options differ from one carmaker to another and you’re requested to check the exact details with an authorized dealership.

Q. How do you check if my car is still under warranty?

It is very easy to check if your car is still under warranty. Note its date of purchase mentioned in the invoice. Check the odometer reading. Next, contact an authorized dealership of your vehicle and provide him with details like VIN, date of purchase and mileage.

Q. Does a car warranty get transferred to second owner?

In most cases, a car warranty gets transferred to the second owner. So, you can say that the warranty as well as the extended warranty always goes with the car and not with the owner.

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