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Used Car Warranties

Automobiles, new and used, come with warranties, a guarantee that if something covered under the warranty goes wrong or breaks, the car dealer will repair it free of charge.  All used car dealers have to display a Buyer's Guide on their used cars.  This Guide will tell you if the car has a warranty and if so, what the terms are, including what systems are covered and for how long and what percentage of repairs the dealer will pay.  

Used cars sold by dealers in most states come with an implied warranty, meaning that the car has to be "merchantable."  This is to say the car has to be reasonably safe to drive.  The brakes have to work.  The electrical system has to work, etc.  But in some states, the dealer can put "as is" on the car, eliminating the implied warranty.  And if you buy a car from a private party and it is sold "as is," then there is no warranty.  If you buy a car "as is" from a dealer or a private party, the minute you drive it away, the dealer no longer has any responsibility for the car.  This is where caveat emptor (buyer beware) kicks in.

A used car may have an express warranty, and it may be a full express warranty or a limited express warranty.  An automobile has an express warranty if  the vehicle is still covered under the manufacturer's original warranty.  It is is a full expressed warranty if the dealer will provide free warranty service to whomever owns the vehicle during the warranty period when the problem occurs.  With an limited express warranty, you will have to pay for some of the repairs if problems occur during the warranty period.  

Many used car dealers also offer extended warranties in addition to the express warranty.  These are meant to extend the period during which the dealer will cover the cost of repairs.   In most cases, these warranties are very expensive and immediate cash in the dealer's pocket.  Think carefully if you really want to spend this extra money.  And also think about whether or not you think the dealer will still be in business for years to come because if he goes out of business, there will be no one to back up the extended warranty.

Visit here if you need to talk to a lawyer about the used car you purchased.