The purpose of a warranty is to save you major expense in case of mechanical failure or breakdown of the particular vehicle covered.  Here are the basics of your warranty options.

Manufacturer’s Warranty – It applies to new vehicles and goes with the car even if it changes owners.  A full manufacturer’s warranty typically provides all service necessary, free of charge to the owner.  It also allows for diagnosis of all covered systems, and removal and reinstallation of all covered parts within a system.  Many dealers provide a loaner car during both scheduled and emergency service procedures. 

Used Car Warranty - This type of warranty will vary from dealership to dealership.  It could be terms as minimal as a 30 day warranty and it may only cover inspection items (parts that have to work for the car to pass inspection).  In most cases, the terms are spelled out on the warranty disclaimer window sticker.  Coverage may run from 3 months/3,000 miles to 12 months/12,000 miles (the “/” meaning “whichever occurs first.”)

In-House Warranty- Many independent dealers offer in-house warranties (covering only work done there).  Coverage varies, so make sure it covers the major components (engine, transmission/ transaxle assembly, drive train, etc).  You will also want to make sure the salesperson informs you about components that are not covered.  Some independent dealer garages offer a free 6-month, 50/50 warranty on used cars, providing they do the service work.  They charge the usual rate for parts and labor, then cut your invoice total in half.  If your dealer doesn’t offer a 50/50 warranty, suggest it. 

Implied Warranty - The Federal Trade Commission and all states have laws concerning implied warranty, meaning that anything you buy must function for some reasonable period of time as it was designed to do.  Don’t rely on the implied warranty.  Dealers are required to post a buyer’s guide in the window of each vehicle offered for sale, notifying you either that there is a warranty or that it’s being sold “As Is,” with no warranty of any kind.  Dealers are required to list all known problems on the buyer’s guide.  It’s possible to get a problem resolved under the terms of an implied warranty, but chances are you will have memorized the phone numbers of your attorney and the state consumer protection agency before that happens.  If the warranty doesn’t specify that the drive train is a covered component, the dealer is under no legal obligation to repair it.  And if the disclaimer states that there is no warranty on the vehicle, the dealer doesn’t have to repair or replace anything, with the possible exception of safety-related inspection items, once the car is sold.  If you buy an “As Is” vehicle, once you drive it off the lot, it and whatever problems it may have belong to you.

Unfortunately, there may also be no warranty at all.  That’s what happens when you buy a car “as is” or from an individual.  However if you still want some coverage, you can always check out an independent warranty seller.

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