Warranty on Used Cars – Facts

Warranty on Used Cars - Facts

What you should know about purchasing a Honda warranty on used cars and using your own warranty from car insurance companies and car dealers is a smart move. Here is how it works:

Traditional Warranty v/s Extended Warranty: Extended car warranties and Hyundai 3 year warranty are very different than traditional warranties. Traditional warranties are typically for new cars. A warranty on a used car is for any model that has been owned by the dealer or the reseller in the past, even if it is sold “as is”. That means that the warranty does not cover normal wear and tear, but only what the dealer or reseller charges for.

Dealership: Extended warranties are for cars that have been repaired or worked on by a dealership. So, basically, anything that was not covered by the factory warranty is covered under these warranties. Typical coverage includes normal wear and tear, battery repairs, major engine repairs, exterior repair and paint or body damage repair. Some companies may offer additional repair coverage as well.

Number of Repairs Covered: Be aware that different car warranty plans have different limits on the number of repairs covered, and may also limit the number of days that the policy covers your vehicle. For example, if you have a two-year limited warranty plan, you cannot drive it more than two years. If the dealer sells you a new car warranty, donotpay your bill to that car warranty company, and then purchase your own two-year or three-year warranty plan.

Limited Number of Repairs: Some warranties also limit the number of total repairs to one. This can make it easier for you to keep track of costs. Many warranties specify the total cost of repairs and replacement of parts. Be sure you understand what is covered by the warranty before purchasing the policy.

Get Warranties from Dealership in Different Ways: Warranties are usually purchased in person, by visiting a dealership, or by telephone. If you decide to use the Internet to purchase your warranty, read all the information carefully, including any fine print. Most warranties contain blackout provisions, which means you will be held responsible for any non-performance problems. You may also be held personally liable if your vehicle is damaged while under warranty.

Extended Warranties: Car dealerships sometimes offer extended warranties when you purchase a vehicle. This is a good idea because these dealerships want to get you into their showrooms, and they do not want to have to pay for repairs at a later date. The extended warranty will cover repairs to the finish, engine, body, and any work necessary to bring the vehicle back to “life”. Be sure you understand the coverage limitations of any extended warranty you are offered.