What You Should Know About Car Warranties
by TERRY BOLTON
With rising cost of new vehicles, many people are opting to buy a used vehicle. The prospective buyer must be aware of what type of car warranty is available on the vehicle they are looking to purchase. Some dealers offer limited warranties on used cars, some do not. And some cars come with the original factory warranty still in force. But how do you tell what is on the car?
Of course, a warranty doesn't necessarily mean you won't have problems. Even with a warranty a bad car will spend a lot of time in the shop and leave you stranded a few times. You need to research the history of the used car you are considering for purchase. A Carfax report is always a good idea on a used vehicle. You should also specifically ask for any information from the dealer about whether the car was ever returned under the lemon law or in an accident. If you have a trusted mechanic, take the car to your mechanic or your mechanic to the car for a checkup before signing any papers.
You can also ask the dealer if the car has any warranties still valid from the manufacturer and if the dealer provides any warranty on the car. Verify any original manufacturer warranties with the manufacturer rather than taking a used car dealer's word for it. Get a detailed, written description of coverage. Make sure no part of the contract contains the words "as is", or all warranties, including most of those provided to you by state law, will be invalid.
Even if the car does not have a remaining warranty and the dealer doesn't automatically provide warranties, you may still have some options for used car warranties. Some dealerships may sell add-on warranties for a separate price. These tend to be more extensive warranties than other used car warranties, providing for more types of repair and parts replacement. Sometimes your car dealer may also have an agreement with a third-party warranty provider that will provide an extended warranty on your purchase, with the warranty servicing all being either paid for or completely done by this third-party company. These warranties often cost more and provide more extensive coverage. They usually are not a good deal, but if you don't have good cash flow and you have to have your car available to drive, third party used car warranties are often a must.
If the dealer doesn't provide good warranties and doesn't resell third-party warranties, you may need to find yourself a third-party warranty service. There are companies out there that will provide used car warranties even on cars purchased from other private car owners. These warranties will usually be pretty expensive, so be careful that they provide you with all of the services you'll need in case of a car break-down. Look for lemon car replacement clauses that may allow you to trade in your used car for cash if it needs repaired too many times after purchase. These are rare in used car warranties, but they are a nice little insurance policy to have in your warranty since many state lemon laws apply more strictly to new cars than used cars.
There are companies available that will sell car warranties for used cars at reasonable prices. These are something to look at and think about when purchasing a used car. This will not only protect your investment if there is no original car warranty left or if the dealership only offers a thirty day one, but it will also protect your wallet. Prices for these extended warranties may range, so do your homework and find the one that is best for you.
Keep in mind that successfully purchasing used cars hinges on several different factors, so see what you can do to improve your opportunities at cheap used cars
