Used car demand has reached an all-time high despite the ongoing pandemic. But with more and more people restricting their search radius to their web browsers, they tend to rush into buying cars without spending much time with it in the flesh. So here's the golden question, are the warranties offered by used car dealers any good? What if the car you bought already has a warranty? Can you buy an extended warranty for a used car? In this article, we answer all these quarries step-by-step to help ease your used car purchase.

What Is A Used Car Warranty?

Any kind of warranty or coverage, that covers your used vehicle is considered a used car warranty. This usually refers to an extended warranty as a used car is not likely to have a factory warranty. It can also be offered by some used car dealers but their coverage is usually limited to the powertrain and the duration in most cases is a year or less.

If your used car is still under factory warranty then you are eligible to purchase the manufacturer's extended warranty but if your car isn't under factory warranty or you don't want to purchase a factory extended warranty, then you can always purchase an extended warranty from a third-party provider.

What is a Car Manufacturer Warranty?

All established auto manufacturers offer extended warranty programs and they insist their plans are the best suited for the vehicle and promise to offer a hassle-free experience when you do run into a problem.

They can also be added at the time of purchase making it the least cumbersome option when it comes to extended warranties however you will end up paying interest on it if you go for any form of financing at the time of purchase. So consider a manufacturer plan in cases where you plan to pay for your car upfront.

What is a Third-Party Car Warranty:

Third-party warranty providers just like any other policy tend to make their plans more attractive, at least on paper, by offering added benefits such as the convenience of choosing your preferred repair shop, affordable plans with flexible payment options, the ability to opt-in even after the manufacturer's factory warranty runs out gives it an edge.

However, there are a couple of things to look out for.

For instance, your used car will have to go through an inspection before a warranty plan can e approved. Even processing claims and tying up with your local repair shops might not be as seamless an experience like the one offered by a dealership. So consider a third-party warranty only after studying the claim process and speak to your nearest repair shop for the best possible results.

As is the case with a new car, your used car warranty can also be divided into three tires:

- Bumper-to-Bumper: A bumper-to-bumper warranty is nearly identical to the manufacturer’s original warranty and covers any part except for a list of exclusions.

- Mid-tier: With reasonable pricing, these plans protect most major components such as the air conditioning and electrical systems, but the cost savings mean that they aren't as comprehensive as bumper-to-bumper plans.

- Powertrain: The most affordable of the lot, a powertrain warranty covers only the core elements like the engine, transmission, etc, parts that the car needs to function, and nothing else.

How to Find Out If Your Used Car Came With A Warranty?

The easiest way to find information about your used car warranty is by going through the official paperwork that you received at the time of purchase. It should not only include the factory warranty details but also details of your extended warranty used vehicle service contract.

In the absence of warranty-related documents, contact your dealer. After sharing a few details about your vehicle, they should be able to take information from company records and tell you all the details of the factory warranty as well as your extended warranty plan. Some of the easiest ways to personally check for the extended warranty are:

- Check Online by entering the VIN.

- Check with your Financing Company has this information recorded.

- Check with your Extended Warranty provider.

If you have purchased a third-party warranty, then your warranty provider is the best point of contact. They can help you clarify all the details of your extended warranty plan and will even guide you to your nearest workshop and help you initiate a claim if necessary.

A CPO is yet another way to buy a used car with total peace of mind. A Certified Pre-Owned (CPO) is a used vehicle that is sold by official company-operated dealerships and undergoes rigorous inspection before they are certified for sale under the brand's CPO program.

Since all CPO cars are inspected by manufacturers, they also get their warranty which works like the original manufacturer warranty. Hence a CPO is also associated with the vehicle's VIN and can be easily verified.

What Doesn't a Used Car Warranty Won't Cover?

A used car warranty isn't different from a regular warranty. They are designed to cover unexpected breakdowns and depending on the type of warrant, the coverage can range from basic powertrain and drivetrain protection packages, up to more comprehensive plans that will even cover critical electrical components. But consumables such as belts, bushes, suspension tires, etc. aren't covered. Some of the other common exclusions include:

Used car warranties don't cover any of the following:

- Regular maintenance

- Unauthorized repair bills

- Repairs that upgrade the car

- Aftermarket parts

- Cosmetic items such as paint, glass, and fabric

- Parts covered by the car's manufacturer warranty

Is A Used Car Warranty Worth It?

Extended warranties for used vehicles are a foolproof way of ensuring continued coverage for your used vehicle, for a long time. But it's not all black and white, and though they can save you from costly repairs down the line an extended warranty isn't cheap and one always runs the risk of never using it. Other factors can affect the price you pay for an extended warranty and these include:

- The provider

- The make and model of your vehicle

- The type of warranty and level of coverage you select

- The deductible amount

Most car dealers offer a 30-day buy-back guarantee and even a limited powertrain warranty for a year in some cases but it's difficult to guarantee the condition and reliability of a used vehicle. Some states like New York have taken measures to prevent the sale of dodgy vehicles by introducing the Lemon Law that requires dealers to give consumers written warranties but for everyone else, an extended warranty is the best way to avoid any nasty surprises.

How Much Is A Warranty On A Used Car?

The price of a used car warranty is similar to what you'd pay for any other car but there are a few factors to keep in mind when purchasing an extended warranty for your used car. A bumper-to-bumper plan will cost anywhere between $1500 and $4500 and the payment can either be made upfront or in monthly installments.

Apart from the cost of the warranty, you will also be required to pay deductibles per visit which can go as high as $300. To give you a better idea, here's a list of quotes from the top extended warranty providers for a 2017 Honda CR-V with 45,000 miles.

What To Look For In Used Car Warranty Companies?

Getting the right used car warranty can prove to be a daunting task. With numerous providers claiming to offer the best services, it can be difficult to wrap your head around the various plans offered across different price points. So before you buy a plan here are a few things to keep in mind:

- Always go through the contract to make sure it's suitable for your vehicle or not.

Check the customer service rating for each company.

- Always try approaching more than one representative from the company to try and get the best possible deal.

- Make sure the customer service representatives understand your needs, if they are rushing to make a sale then listen to your requirements and explain how the policy works, then steer clear of such providers.

- Check if the warranty is transferable. This will add to your car's resale value.

The third-party warranty space is highly competitive and as a result, they generally offer more benefits than a manufacturer extended warranty. So here are some of the benefits you can expect from a third-party used car warranty:

- The option of choosing a repair facility of your choice.

- Added perks such as roadside assistance, towing, and gas delivery.

- Multiple Coverage across different price brackets

- Transferable plans are also available.

What Are the Best Used Car Warranty Companies?

With numerous companies competing for a spot in the extended warranty space, picking a provider out of the bunch can prove to be quite the task. So here's a list of our top picks for best-used car extended warranty providers:

Uproar:

Uproar is based out of Seattle, Washington, but it’s not like any other extended car warranty company out there. Uproar bills itself as an innovator, which makes a lot of sense considering it’s the first extended warranty company to offer a 100-percent digital, subscription-based experience. The main highlights of uproar include an instant quote and signup online, same-day coverage, no long-term commitments, transparency, and no aggressive salespeople or robocalls. They are BBB accredited and have five-star ratings from both Google and Consumer Affairs.

Endurance:

- Endurance offers Coverage for cars up to 20 years old which makes it ideal for used car owners.

- Offers hassle-free inspection after which the claim can be filed, making the entire process foolproof

- They aim to ensure that you don't miss minor details which might cause you trouble in the future.

- They offer membership benefits.

CARCHEX:

- An established player with over two decades of experience.

- Offers coverage for cars with up to 250,000 miles makes it perfect for high mileage vehicles.

- They offer a wide range of policies some of which offer industry-leading claim filing processes.

- A+ rating from the Better Business Bureau.

Protect My Car

- Protect My Car is one of the top consumer-rated warranty providers in the business backed by high BBB.

- They offer combo plans that include maintenance packages along with the added warranty.

- Offer added services like Oil changes and tire rotation.

- Coverage for older vehicles and long-term payment options.

Olive

- For cars up to 10 years old/ 140k miles

- 100% online extended warranty solution with customizable plans

- File claims online 24/7

- Affordable monthly payments

- Call for a quote & get a free $5 gift card

Compare Providers To Find The Best Coverage

Always compare plans before you make a final decision. This is an essential step as some plans will suit your needs better than others. Comparing plans will also give you the best possible pricing options as it is very easy to get a discount on the quoted prices so calling up the companies and talking to the customer reps could help you land a bargain.