Are used car warranties worth it?

If you’re buying a used car, a warranty might seem like a no-brainer – but is it really worth it? Here’s everything you need to know before you commit.

Are used car warranties worth it? If you’re buying a secondhand car, it’s a question worth asking. While you can buy a warranty for a used car, knowing what it covers – and whether it’s worth the money – can help you make a smarter decision.

This guide will walk you through everything you need to know about used car warranties, and if they’re worth it.

Remember, you can buy a used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

What is a used car warranty?

A used car warranty is a contractual agreement that outlines if certain parts of your car break down within a set timeframe, the seller or warranty provider will cover the cost to fix them. It’s a way to protect yourself from unexpected costs after you’ve bought the car.

In short, it gives you peace of mind when buying a used car, so you won’t be stuck with a surprise repair bill right after you buy it.

What does a used car warranty cover?

A used car warranty usually covers the cost of fixing or replacing certain parts if something suddenly breaks down after you buy the car. But it’s really important to check what’s actually included, because coverage can differ depending on the warranty.

So, here’s a rundown of what a used car warranty might cover:

• Mechanical and electrical parts such as the engine, transmission, fuel system, air conditioning, cooling system, gearbox, steering, suspension, and electrical bits.
• Most warranties will also cover the labour costs to figure out what’s wrong and fix it.
• If a covered part breaks, the warranty usually pays to replace it with a new or refurbished one.
• Some warranties even cover the cost of diagnosing the problem, so you’re not stuck paying just to find out what’s wrong.
• Sometimes if one part breaks and causes damage to other parts, the warranty might cover that too – but that’s not always guaranteed.

What doesn’t a used car warranty cover?

Used car warranties usually don’t cover things that just wear out over time: think brake pads, tyres, and clutches. They also won’t pay for damage from accidents, neglect, or if the car’s been abused or not properly maintained.

Routine stuff such as oil changes, topping up fluids, and tune-ups are on you, too. Cosmetic damage such as scratches, dents, or worn seats usually aren’t covered either.

If the car’s been modified, any problems related to those changes probably won’t be covered. And remember, every warranty is different, so it’s really important to read the fine print to see what’s specifically left out.

What are the four types of used car warranty?

There are four main types of used car warranties that can help protect you from unexpected repair costs. Each one comes from a different source and covers different things, so it’s important to check the details before you commit.

1. Dealer warranty

If you buy a used car from an independent dealer, they might offer you a dealer warranty. What’s covered can vary a lot depending on the dealer and their partners, but it’s a solid option if you’re buying from one of these places.

Typically, a dealer warranty covers mechanical and electrical components of a car against defects or failures not caused by wear and tear or accidents.

2. Approved used warranty

This one’s usually offered by manufacturers as part of their “approved used” or “certified pre-owned” programme. It’s a comprehensive warranty that often lasts up to two years after you buy the car.

An approved used warranty usually covers fixing or replacing mechanical and electrical parts that suddenly break down during the warranty period and in the right area. It can also cover wear and tear repairs up to a set mileage from when the car was first registered.

3. Manufacturer warranty

If you’re buying a newer used car, it might still have some time left on its original manufacturer warranty – the one that started when the car was brand new. This kind of warranty is great because it’s backed directly by the carmaker and usually covers a lot.

This usually covers mechanical and electrical faults caused by defects for a set time, which is often about a year. It might also cover rust or damage caused by a part failure. But it doesn’t cover wear and tear, cosmetic stuff, or damage from accidents or misuse.

4. Third-party warranty

This type comes from independent companies that aren’t connected to dealers or manufacturers. They offer plans you can buy separately to cover repairs, and typically covers unexpected mechanical and electrical failures, including parts and labour costs for repairs.

How much is a used car warranty?

If a used car doesn’t come with a warranty, the cost of buying one varies based on several factors:

• The age and mileage of the car.
• The model of car.
• The level of cover provided by the policy.

This can be better broken down by the size of a car, for instance:

• For small cars such as the Ford Fiesta or Toyota Aygo, basic policies start around £165 per year, while premium plans can go up to £500.
• Medium-sized cars such as the Nissan Qashqai typically begin at about £180 per year for basic cover, rising above £600 for more comprehensive protection.
• Luxury models such as the BMW 3 Series usually start around £210 per year, with premium options reaching £630.

Many providers also offer extended warranties for newer cars, with prices ranging from £200 to £800 a year depending on how much coverage you want.

How do you make a claim on your used car warranty?

If your car develops a fault that you think should be covered by your warranty, the first thing to do is contact the company or dealer that issued the policy. They’ll confirm whether the repair is covered and guide you through the next steps.

Keep in mind that many used car warranties have an excess – that’s the amount you’ll need to pay towards any repairs before the warranty takes over and pays for the rest. Some policies also set limits on how much they’ll pay for certain parts, such as the fuel system or gearbox. Plus, they often cap the hourly labor rates they’ll cover, so you might need to get repairs done at an approved garage to keep your warranty valid.

Always check your warranty’s terms and conditions to avoid any surprises.

Should you get a used car warranty?

Used car warranties work a bit like insurance. You’re basically betting that the cost of the warranty will be less than the repair bills you might face.

The real value, though, is the peace of mind. Knowing that if something major, such as your engine or gearbox, breaks down, you won’t be stuck with a huge bill. It can be a lifesaver if, of course, the fault is covered by the warranty.

For example, imagine you paid £200 for a 12-month third-party warranty, and during that time, your automatic gearbox fails – luckily, the policy covers repairs costing around £5,500. But bear in mind that not every claim goes so smoothly; some drivers might have claims denied because of small-print exclusions, such as snapped timing chains.

That’s why it’s so important to read the terms carefully and understand what’s covered, and what’s not. Also, check reviews of the warranty company and consider the policy’s excess and your car’s value. Paying £300 for a policy with a £250 excess on a car worth £1,000 probably isn’t worth it.

Used car warranty FAQs

When does a used car warranty start?

A used car warranty typically starts when the policy documents are signed and payment is received. This is usually the day you take delivery of the car.

How long does a used car warranty last?

This depends on several factors. A warranty included in the price of the car may last around six months, with the option to pay for an extension. If you’re buying cover directly from a third-party provider, 12 months is more typical.

Can you cancel a used car warranty?

Most used car warranties come with a 14-day cooling-off period, during which you can cancel for a full refund. After that, cancellation terms will depend on the provider’s specific terms and conditions.

Is a warranty a good idea for a used car?

Yes, a used car warranty can offer peace of mind and potential savings on unexpected repairs. Just be sure to read the fine print and weigh the cost of the warranty against the likelihood and cost of future issues.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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