What's Covered Under a Used Car Warranty?
What's
the difference between a full and a limited warranty?
What should you look for in a used car warranty?
Dealers
may offer a full or limited warranty on all or some
of a vehicle's systems or components. Most used car
warranties are limited and their coverage varies.
A
full warranty includes the following terms and conditions:
-
Anyone
who owns the vehicle during the warranty period is
entitled to warranty service.
-
Warranty
service will be provided free of charge, including
such costs as removing and reinstalling a covered
system.
-
You
have the choice of a replacement or a full refund
if, after a reasonable number of tries, the dealer
cannot repair the vehicle or a covered system.
-
You
only have to tell the dealer that warranty service
is needed in order to get it, unless the dealer can
prove that it is reasonable to require you to do more.
-
Implied
warranties have no time limits.
If
any of these statements doesn't apply, the warranty
is limited.
A
full or limited warranty doesn't have to cover the entire
vehicle. The dealer may specify that only certain systems
are covered. Some parts or systems may be covered by
a full warranty, others by a limited warranty. The dealer
must check the appropriate box on the Used Car Buyers
Guide to indicate whether the warranty is full or limited
and the dealer must include the following information
in the "Warranty" section:
-
The
percentage of the repair cost that the dealer will
pay. For example, "the dealer will pay 100 percent
of the labor and 100 percent of the parts";
-
The
specific parts and systems, such as the frame, body,
or brake system that are covered by the warranty.
The back of the Buyers Guide lists the major systems
where problems may occur.
-
The
warranty term for each covered system. For example,
"30 days or 1,000 miles, whichever comes first";
and
-
Whether
there's a deductible and, if so, how much.
You
have the right to see a copy of the dealer's warranty
before you buy. Review it carefully to determine what
is covered. The warranty gives detailed information,
such as how to get repairs for a covered system or part.
It also tells who is legally responsible for fulfilling
the terms of the warranty.
If it's a third party, investigate
their reputation and whether they're insured. Find out
the name of the insurer, and call to verify the information.
Then check out the third-party company with your local
Better Business Bureau. That's not foolproof, but it
is prudent. Make sure you receive a copy of the dealer's
warranty document if you buy a car that is offered with
a warranty.
If
the manufacturer's warranty still is in effect, the
dealer may include it in the "systems covered/duration"
section of the Used Car Buyers Guide. To make sure you
can take advantage of the coverage, ask the dealer for
the car's warranty documents. Verify the information
(what's covered, expiration date/miles, necessary paperwork)
by calling the manufacturer's zone office. Make sure
you have the Vehicle Identification Number (VIN) when
you call.
If
you have a written warranty that doesn't cover your
problems, you still may have coverage through implied
warranties. State laws hold dealers responsible if cars
they sell don't meet reasonable quality standards. These
obligations are called implied warranties - unspoken,
unwritten promises from the seller to the buyer. When
a dealer sells a vehicle with a written warranty or
service contract, implied warranties are included automatically.
The dealer can't delete this protection. Any limit on
an implied warranty's time must be included on the written
warranty.
(Source:
Federal
Consumer Information Center) |
