In part one of this two-part blog series, we went over some of the basics on how warranties work for used cars. Often a very important factor to a buyer, a car’s warranty helps protect the owner against certain kinds of damage or failure that might take place outside their control.
At Auto Showcase of Tulsa, we’ll be happy to detail the warranty specifics for any of our quality used cars you’re considering, along with other important details about the vehicle. Part one of our series discussed new car warranties, extended warranties and service contracts – today will go over a few additional warranty types or coverages that might be present, plus a couple important variables to keep in mind when obtaining a warranty.
Additional Warranties and Buyer’s Guide
In many cases, used cars sold at dealerships will come with some kind of additional warranty beyond the manufacturer warranty. In such situations, the dealership must disclose warranty details. One of the major rules here is displaying a buyer’s guide, which contains several pieces of information – including warranty coverage.
Per the Federal Trade Commission, this buyer’s guide will be extensive and cover both warranties and many other areas. Some requirements for the buyer’s guide include advising consumers about each of these factors:
- Major mechanical and electrical systems present, plus any major problems that might occur in them
- Whether the vehicle is being sold as-is or with a warranty
- What percentage of repair costs the dealer pays under warranty
- Oral promises are difficult to enforce; the guide recommends all promises be taken in writing
- Guide advises consumers to have the car inspected by an independent mechanic before buying, plus obtain a vehicle history report and inquire about any safety recalls
One major area to inquire about for any warranty, whether it’s a manufacturer’s warranty or one offered by a dealership: The insurance coverage that backs it. The most reputable dealers, like ours, will be able to detail coverage through A-rated insurance companies for any warranties that are sold.
Others, however, might not be so robust. Some sell extended warranties with no insurance coverage whatsoever – these should be avoided, as should limited coverage that doesn’t include common areas.
“Bumper to Bumper” Myth
Finally, we wanted to help steer you clear of a big myth in the car warranty world: The “bumper to bumper” coverage type. Simply put, this doesn’t actually exist – there is no such thing as a warranty that literally covers everything. Rather, extended warranties will generally include an exclusionary policy, which expressly lists the components or items that are not covered – anything not listed on this policy is covered. While many policies will come with very few exclusions, there’s no such thing as true “bumper to bumper” coverage in a warranty.
For more on used car warranty considerations, or to view our used car lot or options, speak to the staff at Auto Showcase of Tulsa today.