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A Guide to Used Car Extended Warranty

So, you have planned to buy a used car. You might have a question in your mind about whether to buy it from a licensed dealer or from a private party. Both these options have their own pros and cons.

Benefits of buying from a private party are you can save money and save yourself from aggressive salespersons, whereas purchasing from a licensed dealer brings you certain exquisite guarantees and warranties.

You need not be confused about what exactly is warranted and guaranteed according to the law. Allianz used car warranty experts throw light on exactly what you will get upon buying from a licensed dealer.

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Learning about Types of Warranties

Upon purchasing a car from a dealer, get a copy or original of the final Buyer’s Guide. It should indicate any changes done after negotiations over warranty coverage. It is also a part of your sales deal and supersedes any contrary provisions.

E.g. if it is noted in the Buyers Guide that the car has a warranty and it has been mentioned in the contract that the car has been sold “as is”, the dealer has to provide you the warranty mentioned in the Guide.

“As Is” Means No Warranty

If the vehicle comes “as is”, the box “As Is – No Warranty” in the Buyers Guide should be checked. If the dealer guarantees to repair the car or cancel the deal in the situation of your dissatisfaction, though the box is checked, make sure that the promise made by the dealer is written in the Buyers Guide. Or else, you may face a hard time while making the dealer keep his promise.

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Implied Warranties

According to law, dealers are responsible if their sold cars don’t meet the required quality standards. These compulsions are known as implied warranties – unwritten, unspoken promises to the buyer from the seller.

But many dealers can use the words “with all faults” or “as is” in writing to get rid of implied warranties. Implied warranties don’t have specified time limit.

Warranty of Merchantability

This is the commonest type of implied warranty. The seller guarantees that the item on sale will do what they are claiming. E.g. the promise that a car will run is a warranty of merchantability. This warranty applies to all the basic functions of the car. It doesn’t cover any possible fault.

According to this warranty, problems like breakdown after the sale are not proofs of breach of the said warranty on the seller’s part. Only if the buyer can establish that the problem existed since the time of sale, breach is proved.

Warranty of Fitness for a Specific Purpose

This applies when you purchase a used vehicle following the dealer’s advice that it will suit to a specific use. E.g. if a dealer advises you to buy a particular vehicle for carrying a trailer, he promises that the vehicle will suit to that purpose.

If there is a written warranty not covering your problems, you can still get coverage because of implied warranties, because when a dealer sells a vehicle, implied warranties are automatically included in the service contract or written warranty. This protection cannot be eliminated by the dealer. The written warranty should include any limit on the time of the implied warranty.

Dealers should complete the Buyers Guide’s warranty section. Since terms and condition differ, it can be used to compare and negotiate coverage.

Dealers may provide a limited or full warranty on all or some of the components or systems of a vehicle. The coverage offered by most used car warranties varies and they are limited.

For the information of used Honda extended warranty and other car warranties, visit

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Tags: Allianz, Car, Honda, Used, car, extended, used, warranty


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