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In the past a warranty on a used vehicle was unheard of, unless you managed to purchase a vehicle while it was still covered by its original manufacturer's warranty and that warranty was transferable. However,
in today's market there are many
two or three-year-old used cars
available due to individual
leased cars, company cars, and
fleet cars being turned in after
their lease or desirability
expires. As an incentive for you to purchase these vehicles, many dealerships now offer full warranties on the used vehicles that they have brought up to mint condition and limited warranties on used cars in not so perfect condition.
To determine the manufacturer's warranty on the car you want to purchase, all you have to do is look for the Buyer's Guide Sticker displayed on the vehicle. Dealers are required by law to display a Buyer's Guide Sticker on every vehicle, except motorcycles and some recreational vehicles, in order to inform you
whether the vehicle comes with a warranty and what that warranty includes. It's your job to educate yourself with regard to what the warranty information provided means.
The following are a list of
terms you need to familiarize
yourself with:
- As is: This means that there is no warranty offered and that you are responsible for all repairs. If you can prove the dealership knew of a defect and failed to disclose it, the dealership can be found liable. This is not the easiest thing to prove. Whether your state allows "as is" sales or not, it is best to avoid buying any vehicle "as is." At the very least, try and negotiate for a limited warranty that covers 100 percent of any defects that show up in the first ninety days, otherwise walk away from the deal.
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Limited Warranty: Are usually offered on older cars in good, not perfect, condition. The cost of repairs is split between the buyer and the dealer. It is important to note how the cost of the repairs are split. Therefore, it is important that you look to the Buyer's Guide, which the dealer must supply on each vehicle it sells, to determine the limited warranty conditions provided. Be acquainted with any deductibles that may apply, the percentage of repair costs that the dealer contributes toward parts and labor, the time and mileage requirements of the warranty for each system and the specific parts and systems that are covered under the warranty.
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Full Warranty:
Are usually offered only on newer, fully restored vehicles in pristine condition. All repairs included should be free of charge.
In addition, have
your warranty specify that the
dealership will provide copies of their suppliers' invoices for parts used in repairs and stipulate that you have the option to buy parts outside the dealership if they are less expensive than the price quoted you. Ask for a copy of all warranties in place on any new parts that were installed as a part of refurbishing the vehicle prior to its sale. Ask to see any unexpired warranties that may exist and note if there are transfer fees.
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