How Important Is A Car Warranty On A Used Car?

September 29, 2022

Getting a car warranty is almost as crucial as getting life insurance, and nowadays, it’s not what you know but who you know. When it comes to buying a used car, that adage is especially true. But how do you know if the vehicle is worth the price? A car warranty can give you peace of mind and ensure you’re not taking on too much risk when buying a used car. The warranty is one of the most important factors when purchasing a used car.

But what exactly is a warranty, and how important is it? A warranty agreement between the buyer and seller of a product is an agreement to fix or replace the product if it breaks during a specific time frame.

Here’s why everyone should consider getting a warranty when they buy a used car. Without one, you could spend a lot of money fixing things that go wrong. So, how do you know if purchasing a warranty is your suitable decision?

Importance of a Car Warranty on a Used Car

someone signing a warranty contract of a used car

Gives You Some Protection Against Unforeseen Expensive Repairs

If you have owned a car, you know that repairs and maintenance can be expensive. And if you’ve ever had to pay for a critical repair, you know it can be a real budget buster. That’s why a warranty on a used car can be such a valuable thing.

A warranty gives you some protection against unforeseen expensive repairs. It’s like an insurance policy that can save you a lot of money if something goes wrong with your car.

Most used cars come with a warranty, but it’s essential to read the fine print before buying. It’s critical to understand exactly what is covered and what is not covered by the warranty before buying. Some warranties only cover certain vehicle parts, and some have time or mileage limits. Otherwise, you could find yourself stuck with a hefty repair bill that the warranty won’t cover.

A warranty is no substitute for regular maintenance and care. Still, it can give you some peace of mind knowing that you have some protection against expensive repairs. So if you’re considering buying a used car, ask about the warranty and ensure you understand what the contract exactly covers. It could end up saving you a lot of money down the road.

Cover The Cost Of Repairs Or, In Some Cases, A Replacement Car

A mechanic fixing a car engine

A warranty is essential when you are buying a used car. For the most part, it covers the cost of repairs. It can also, in some cases, cover the cost of a replacement car.

If something goes wrong with the car, you will not have to pay for the repairs. The warranty will cover it. It is essential because repairs can be expensive. Otherwise, you will end up paying a costly repair bill if you do not have it.

Another reason a warranty is crucial when buying a used car is that it can cover the cost of a replacement car. Suppose your vehicle is totalled in an accident or stolen. In that case, your insurance will not cover the cost of a replacement car. However, if you have a warranty, the warranty will cover the cost of a replacement car.

Warranties Don’t Just Cover The Parts But Also The Labor

a mechanic expert checking a vehicle while going through a checklist in his hand

Warranties are important because they cover not only the parts of an item but also the labour. For example, if you buy a car with a three-year, 36,000-mile warranty and something goes wrong with the engine, the dealership will fix it for free. The same is true if you buy a computer with a one-year warranty and the hard drive crashes; the company will replace it at no charge. In both cases, the warranties saved you money on repairs.

But warranties also cover labour, and that can be a significant saving. If you have to replace the engine in your car, it could cost $1,000 or more just for the labour. That’s why it’s essential to read the fine print on warranties before you make a purchase.

Some warranties may only cover parts, while others may cover both parts and labour. Ensure you understand your warranty contract to take advantage of all the benefits.

Keeping A Car In Great Shape Will Improve Its Resale Value

Many people think that a warranty on a used car is not essential. They believe that keeping a car in great shape will improve its value. However, a good warranty can give you protection against costly repairs.

The manufacturer may void the warranty claim if you do not keep your car serviced during the warranty period. In addition, many insurance products have a deductible that must meet their requirements before they will pay for repairs.

A warranty can help cover the repair cost after an accident or mechanical breakdown and increase the value when selling your vehicle. As a result, the latter can be an essential consideration when purchasing a used car.

It Shows That The Dealer Stands Behind The Car

In Australian consumer law, all used cars must have a statutory warranty of at least three months or 5,000 kilometres, whichever comes first. It is also known as the consumer guarantee and covers the buyer against defects present at the time of purchase.

The dealer is legally obligated to repair or replace the car if a problem arises during the warranty period. Some dealers also offer a used car extended warranty, which covers a longer period or additional components not covered by the used car statutory warranty.

When assessing a used car warranty, it is essential to read the terms and conditions carefully to understand what is and is not covered. By doing your research, you can be confident that you are getting the best protection for your used car purchase.

A Warranty Can Give You Peace Of Mind

Warranties are important, but not always for the reasons you might think. A warranty on a used car is a good way for the salesman to get peace of mind. If anything goes wrong with the car after you’ve driven it off the lot, the dealership must make it right- at least until your warranty expires.

For the buyer, a warranty is an insurance policy of sorts. It’s a way to protect yourself against expensive repairs down the road. Of course, there are catches.

Most warranties come with a long list of exclusions, almost always with a deductible. So, if you’re getting a used car, read the fine print on the warranty and factor it into your decision-making process. Ultimately, a warranty is only as good as the company behind it. Do your research and buy from a reputable dealer to give yourself the best odds of coming ahead.

What Is The Best Car Warranty?

a car key placed above a contract with blurred background

1 – The best car warranty is the one that covers the car. That said, there are a few different types of warranty to consider. The manufacturer’s first is the manufacturer’s warranty covers major components like the engine and transmission. These warranties are usually valid for a few years or a set number of miles, whichever comes first.

2 – The second type of warranty is an extended one, which is offered by some dealerships and covers repairs after the manufacturer’s warranty expires. 

There are service warranties and extended warranties purchased from third-party companies. These warranties typically cover everything the manufacturer’s car warranty covers, plus a few additional items.

So, when it comes to finding the best car warranty, it depends on what you’re looking for and your budget. 

Please refer to an extended warranty from a reputable company for the best bet.

What Items Should You Buy Extended Warranties On?

someone holding a car key and using his second hand to sign a car warranty document

First, extended warranties typically only cover wear and tear, not mechanical issues, from a regular operation. Second, many extended warranties have servicing requirements that some criteria must meet for the coverage to remain in force.

And finally, some items are not covered by most extended car warranties. With that in mind, here are a few items that you might want to consider buying an extended warranty for:

Tires: Tires are subject to a lot of wear and tear and can be expensive to replace. If you’re worried about the cost of new tires, an extended warranty can give you peace of mind.

Brakes: Like tires, brakes are subject to wear and tear and can be expensive to replace. Extended warranty providers can help you avoid the high cost of repairs.

Transmission: The transmission is a vital part of your car and can be costly to repair or replace if it fails. You can extend your warrant concerned about the cost of transmission repairs, which can be a good option.

What Does a Car Warranty Cover?

someone signing a contract in a car yard after reading what it covers

Most car warranties cover factory defects for a certain period, usually three years or 36,000 miles (whichever comes first). However, wear and tear items, including brakes, shocks, and routine maintenance, are not typically covered.

Some manufacturers also require that you follow their servicing requirements to keep the warranty valid. So if you’re planning on neglecting your car’s oil changes, you might want to think twice.

In the end, a car warranty protects you from expensive repairs due to manufacturing defects. But it’s essential to understand the limits of your warranty coverage to be prepared for unexpected costs.

Frequently Asked Questions

Is Buying An Extra Warranty Worth It?

There are a few things to consider when making this decision. First, how old is the car? If it’s a late-model car with low mileage, likely, any factory warranty will still be in effect. However, suppose the vehicle is several years old or has high mileage. In that case, it’s probably a good idea to purchase an extended auto warranty.

Second, what are your driving habits? Suppose you tend to drive carefully and don’t put a lot of wear and tear on your vehicles. In that case, you’re less likely to need repairs than someone who drives aggressively or frequently takes their car off-road.

Pairing in, how much can you afford to spend out of pocket if something goes wrong? If you’re comfortable with taking on more risk, you may be able to save money by preceding an extended warranty. Ultimately, buying a used car is no right or wrong answer. It’s simply a matter of weighing the pros and cons to decide what’s best for your situation.

Is It Worth Paying For An Extended Warranty On The Car?

Deciding whether or not to go for an extended warranty is difficult, as it depends on several factors. The first thing to consider is the age and mileage of the car. However, suppose the vehicle is several years old or has high mileage. In that case, it’s probably a good idea to purchase an extended warranty.

Another thing to consider is your driving habits. Suppose you tend to drive carefully and don’t put a lot of wear and tear on your vehicles. In that case, you’re less likely to need repairs than someone who goes aggressively or frequently takes their car off-road.

Pairing in, you should consider how much you can afford to spend out of pocket if something goes wrong. You may be able to save money by preceding an extended car warranty if you’re comfortable with taking on more risk. Ultimately, buying a used car is no right or wrong answer.

Can An Extended Car Warranty Be Purchased Later?

Yes, you can usually purchase an extended warranty after buying the car. However, it’s important to remember that the warranty price will generally be higher if you do this. It’s typically best to buy the warranty simultaneously as the car to get the most value for your money.

How can I afford the extra cost of a car warranty?

There are many ways to get a car warranty. The most common way is by paying for it upfront when you buy your car. You can also pay for a car warranty monthly, using an Openpay plan or Humm which is typically offered by the dealership or manufacturer.

Here at Mad Man Motors, we offer both Openpay and Humm plans for car warranties and even car servicing costs. This means that you don’t need to come up with all the money upfront but will still have to pay off the full cost at some point in the future.

Is A Bumper To Bumper Car Warranty Worth It?

It is an extended warranty that covers almost everything on the car, from the engine to the air conditioning. The only things usually not covered are regular maintenance items like oil changes and tires. That depends. If you’re a driver who likes to keep their car in tip-top condition, you might not need one.

But suppose you’re not diligent about maintenance or tend to drive your motor vehicle hard. In that case, an extended warranty can give you peace of mind knowing that your car is covered. Ultimately, it is up to you whether a bumper-to-bumper warranty is worth it.


So, is a warranty on a used car important? The simple answer is yes. A warranty can give you peace of mind when buying a used car, knowing that the seller will fix any problems with the vehicle. It’s also worth noting that a seller must provide a statutory car warranty for any vehicle sold in Australia under Australian consumer law.

This warranty covers significant faults with the vehicle for up to six months, or 10,000 kilometres travelled (whichever comes first), so it’s something to keep in mind when buying a new car or used car. If you have any questions about warranties or consumer law, our team at Mad Man Motors can help – Just get in touch!

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