The great thing about a new car is that it comes with a car warranty as part of the package. You know that the next three to seven years will be free from most worries about car maintenance and electrical faults. Not all used cars come with that kind of cover.
That’s not to say all used cars are warranty-free. Some newer used cars will still be under warranty when you purchase them. Others will be a little older and past the manufacturer’s warranty period when they are advertised for sale.
That’s not to say you can’t purchase a car warranty for a used car, though. The question is, do you need to and how do you find the right car warranty for your used wheels?
What is a car warranty?
Car warranties for new cars are a little like a guarantee from the car manufacturer. They cover the car for anywhere between three to seven years, or a certain number of miles, for any mechanical or electrical faults. You’re still responsible for general maintenance and wear and tear. A car warranty usually comes with a few rules to keep the manufacturer’s promise valid.
Regular servicing by reputable and approved dealers is one of the core conditions for keeping your car warranty valid. Tyres, windscreen wipers, brakes and clutches aren’t covered by a manufacturer’s car warranty. These elements are considered to be ‘consumables’ for a car. That means they’re expected to wear out and need replacing. Your driving style impacts how quickly these parts need attention.
What is a used car warranty?
Used car warranties work in a similar way to a car warranty that’s provided by a car manufacturer. Essentially it’s an agreement with the car warranty provider that they’ll cover the cost of parts and labour for particular mechanical or electrical faults on your vehicle.
Of course, you’ll still have to take care of your car. Having a low-maintenance vehicle and driving economically will still save you time and money. If you’re looking for more comprehensive cover, an extended car warranty is probably the thing you need. This covers your car for faults and for wear and tear. It’s a little more expensive, but delivers a lot more peace of mind.
Car warranties versus car insurance
Car insurance is a must. It’s illegal to drive a car on UK roads without basic third-party insurance. Car insurance covers you for any damage you do with your vehicle. Of course, different levels of insurance provide different levels of cover. The most basic cover takes care of others and the highest level insurance covers others, you, your car and your passengers.
What a car insurance policy doesn’t cover is everyday maintenance and repairs. Even a comprehensive car insurance policy covers just accidental damage.
Cover for repairs, maintenance costs and general wear and tear to your vehicle is taken care of by a warranty. Or, if you don’t have a warranty, your savings account or credit card is used to cover repairs. That’s when car costs can get painful. It’s also why a car warranty can be so valuable.
Why bother with a car warranty?
A car warranty, whether for a new car or a used car, provides peace of mind. Mechanical things can fail. Parts wear out and even general maintenance can get expensive. Purchasing a car warranty takes the sting out of repair costs or high maintenance bills because they’re already paid for.
As with car insurance, a car warranty has different levels of cover. Lower level car warranties will cover fewer parts and labour than higher level warranties. You may find that you are only covered for repair costs up to a certain value and then need to dip into your own pocket if work exceeds that amount.
When choosing a car warranty, check the level of cover and the period it lasts for. This can be anywhere from three months to a year. If you need a car warranty for more than a year, you’ll need to review and renew the warranty each 12 months.
Note the detail of repair excesses, mileage restrictions, which garages you can use for maintenance and the kinds of wear and tear the car warranty includes. You’ll need to weigh up the benefits of the warranty against the expected maintenance and repair costs for your car. If the maintenance costs and warranty charges get too high, it could be time to say goodbye to your car.
As a general rule of thumb, the older the car, the higher the maintenance and repair costs will be. This is simply because more parts need replacing. Rubber hoses perish over time, microchip sensors burn out, and even metal parts eventually wear out and need replacing.
An extended car warranty works a little like contents insurance or cover for your white goods. It means you’re covered for work on your car when you need it.
How to choose the right car warranty
Not all car warranties will give you peace of mind. If you opt for the cheapest, you could well find yourself paying for work on top of the car warranty. The trick is to choose the level of cover that suits you and your vehicle.
More often than not, simply going with the car warranty offered by the dealership selling the car will leave you out of pocket. You’ll either be protecting yourself against work that is unlikely to be needed or worse, not covering yourself for work that is likely to be needed.
Check the types of common issues for the make, model and age of car you want to cover. Knowing what the common faults are, arms you with the knowledge needed to choose the best car warranty for you.
After a little research, it’s time to check out the warranties offered by car dealerships and independent providers. Consider both the work you’ll likely need and the amount of work you’re comfortable covering on your own. The average cost of a full car service is £150, a major service can be upwards of £300.
The right warranty will fit the sweet spot between car maintenance costs you can comfortably cover and those you can’t. Choosing a car warranty for a used car is a smart option that will save you money and bring you peace of mind.
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