What is a used car warranty?
A used car warranty is an umbrella term for any kind of coverage that can be applied to a pre-owned vehicle. Used car warranties typically either refer to warranties that come with used cars or warranties that you have to purchase separately. They may be provided by the original manufacturer, a dealership or a third-party company.
Types of used car warranties
A used car warranty may refer to any of the following:
Factory warranty
Some or all of the manufacturer’s original factory warranty may be available for a used vehicle, depending on the car’s age and mileage. All new vehicles sold come with a factory warranty that lasts for at least 3 years/36,000 miles.
CPO warranty
Auto manufacturers offer CPO vehicles, which come with CPO warranties. These warranties generally extend the factory warranty for a period of time, usually one or two years. Used cars must meet strict model year or mileage qualifications and pass a dealer inspection to qualify as a CPO vehicle. CPO vehicles are usually under five to seven model years old and under 50,000 to 80,000 miles, depending on the manufacturer.
Dealer warranty
Car dealers or manufacturers typically offer a short warranty for non-certified used vehicles. For example, CarMax includes a 30-day limited warranty for most of its used car sales, though this varies by state.
Extended warranty
If your factory warranty or other warranty coverage has expired, you may be able to purchase an extended auto warranty for your vehicle from the manufacturer or a third-party extended warranty company. Extended warranties typically last anywhere from one to 10 years and may last up to 300,000 miles.
Used car warranty comparison
Compare the different types of used car warranties:
| Factory warranty | CPO warranty | Dealer warranty | Extended warranty | |
|---|---|---|---|---|
| Who provides it | Auto manufacturer | Auto manufacturer | Car dealer or auto manufacturer | Auto manufacturer or third-party company |
| Coverage | Bumper to bumper and powertrain | Usually bumper to bumper | Limited | Bumper to bumper or powertrain |
| Cost | Included with vehicle purchase | Included with vehicle purchase | Usually included with vehicle purchase | Separate upfront or monthly cost |
| Where repairs are done | Authorized manufacturer dealerships | Authorized manufacturer dealerships | At that specific dealership | Approved repair shops |
| Transferable | Yes | Usually | Rarely | Yes |
| Cancellation | No | No | No | Yes |
What does a used car warranty cover?
A used car warranty covers certain parts of your vehicle against factory defects or mechanical failures, depending on the level of coverage. Used car warranties typically offer bumper-to-bumper coverage or powertrain coverage.
Bumper-to-bumper warranties
Bumper-to-bumper warranties typically cover most vehicle parts and systems except specifically excluded parts and wear-and-tear items, like wiper blades and brake pads. This type of coverage is best for newer used cars or drivers who want maximum coverage.
Powertrain warranties
Powertrain warranties generally cover your vehicle’s engine, transmission and drive axle. Powertrain warranties cost less than bumper-to-bumper warranties because they cover far fewer parts. This type of coverage is generally best for older or high-mileage vehicles.
What used car warranties don’t cover
Car warranties don’t cover issues caused by neglect, misuse, abuse, aftermarket parts, weather or collisions.
» LEARN: Car warranty vs. car insurance
How much do used car warranties cost?
Used car warranties typically cost anywhere from $600 to $5,000 per year for extended warranties, according to our research. Generally, how much you’ll pay for a used car warranty depends on your car’s age, mileage, location, along with the provider and protection plan you choose.
Factory warranties
Factory warranties are included with all vehicles for a certain amount of time or mileage, so you don’t need to pay anything for this coverage.
CPO warranties
CPO warranties typically cost around 3% to 4% more than an equivalent used car that hasn’t been certified by a manufacturer.
Dealer warranties
Dealer warranties are typically included in the cost of a used car, but sometimes dealers will sneak them in as a hidden upcharge, so it’s best to check an itemized invoice before purchase.
Extended warranties
Third-party extended warranties typically cost around $1,000 to $5,000 per year for bumper-to-bumper coverage, and $600 to $750 per year for powertrain coverage. Manufacturer extended warranties typically cost more than that. Rates can vary significantly, so it’s best to get at least a few quotes for your vehicle if you want an accurate idea of what you’ll spend.
Pros and cons of used car warranties
A used car warranty can offer peace of mind and financial protection, depending on the type of warranty. But it’s not always the best fit for every driver or vehicle. Compare the pros and cons:
Pros
- May cover costly repairs
- Flexible coverage options
- Adds peace of mind
Cons
- Extended warranties can be expensive
- May have limited coverage
How to choose a used car warranty
If you’re interested in a used car from a dealer, it’ll likely come with a dealer warranty or a CPO warranty. If you want a certain level of coverage or longer coverage, you’ll likely have to choose a different auto manufacturer or dealer. Otherwise, you can purchase an extended warranty to increase your coverage length or level.
If you’re interested in a used car that’s not from a dealer, or if you’re interested in a car that’s already five or more years old, an extended warranty may be your only option for a used car warranty.
Check if the car already has warranty coverage
Some used cars come with long factory warranties or CPO warranties, so it can be worth considering used cars from different brands. For example, a CPO Genesis comes with a 6-year/75,000-mile bumper-to-bumper warranty and a 10-year/100,000-mile powertrain warranty (from the date the vehicle was first sold). That might be all you need, even if you plan to keep the car for a long time.
If you’re buying a car from a dealer, you can ask about its current warranty coverage. If you’re not buying from a dealer, you can do a free car warranty check using the vehicle identification number (VIN) to see if your car still has factory coverage.
Think about how long you want to keep the vehicle
If you’re interested in a used car that’s only a few years old, you might be planning to keep it for five to 10 years. During that time, any active factory warranties or CPO warranties will likely expire. If you want coverage for the entire time, you’ll need to get an extended warranty.
Figure out what level of coverage you want
If you’re interested in an extended warranty, powertrain coverage alone may be enough if you’re buying a vehicle known for engine or transmission issues. If the model has mixed reliability across multiple systems, broader bumper-to-bumper coverage may make more sense.
Weigh the cost against your budget
Some used car warranties are included with the vehicle, while extended warranties are purchased separately. If you’re buying an older car and you want warranty coverage, an extended warranty might be your only option.
Whether an extended warranty is worth the cost depends on how likely you are to use it. While you can’t predict repairs with certainty, reliability ratings and owner-reported data can help you estimate the risk of future repair costs and decide if the added protection fits your budget.
Compare providers and costs
Like shopping for auto insurance, buying an extended warranty involves collecting multiple quotes, comparing coverage options and choosing the plan that works best for you. It’s best to compare quotes from at least three different providers to find the best option for you.
Be aware of consumer protection laws and regulations
Several U.S. consumer protection laws affect used car warranties and extended warranties:
- Magnuson-Moss Warranty Act: Requires warranty terms to be clearly written and disclosed, and gives consumers legal rights if a warranty provider fails to honor coverage
- Federal Trade Commission (FTC) Used Car Rule: Requires dealers to post a buyer’s guide stating whether a used car is sold “as is” or with a warranty and what that warranty covers
- State warranty and service contract laws: These regulate how extended warranties are sold, including licensing, cancellation rights and refund rules
- State lemon laws: In some states, limited lemon law protections may apply to used cars, especially if they’re still under a manufacturer’s warranty
What is buying a vehicle as is?
When you buy a vehicle as is, you’re buying it in its current condition and without a warranty. The car could have known or unknown issues, or it may not even work.
Used car warranty cancellation and transfer policies
Used car warranties may be able to be cancelled or transferred depending on the warranty type and the provider.
Cancellation policies
You can’t cancel a used car warranty that comes with a vehicle, such as a factory warranty or CPO warranty. For extended warranties, many providers let you cancel within 30 to 60 days for a full or pro-rated refund.
Transfer policies
If a warranty is transferable, it means you can transfer the remaining warranty coverage to the next owner of the car if you sell it.
- Factory warranties: Factory warranties follow the car, not the owner, so any remaining coverage will automatically transfer to the next owner.
- CPO warranties: CPO warranties are typically transferable, but not always, so it’s best to confirm this before purchase.
- Dealer warranties: Dealer warranties are typically very short, so they are usually not transferable to a new owner.
- Extended warranties: Extended warranties are usually transferable to a new owner, though you’ll typically need to fill out paperwork and pay a transfer fee.
How to file a used car warranty claim and what to expect
Used car warranties generally have a similar claim process, no matter the type of warranty you have. You’ll typically start by taking the car to an approved car repair shop. The shop will contact the provider, who will review the issue and authorize any covered repairs. If the repairs are approved, the repair shop will start working on the car. The warranty provider will then generally pay the shop directly. You’ll typically be responsible for paying a deductible.
If repairs are denied by the warranty provider, you’ll be responsible for the cost of repairs. However, you can generally appeal the decision. To give yourself the best chance at winning your appeal, take note of the reason for the denial and provide evidence like routine maintenance records and contract language that support your argument for reversing the decision.
Is an extended warranty for a used car worth it?
Generally, it can be worth paying for an extended auto warranty for a used vehicle if your car brand or model isn’t known for reliability or if you want peace of mind against future repairs.
Reliability
You can check if your brand or model is considered reliable through sites like J.D. Power and RepairPal. For example, in J.D. Power’s 2026 U.S. Vehicle Dependability Study, it ranks Lexus, Buick, Mini, Cadillac and Chevrolet as the top five most dependable vehicles. In comparison, RepairPal ranks Honda, Acura, Kia, Hyundai and Mazda in its top five for reliability.
Warranty cost vs. repair cost
One way to evaluate a warranty is to compare its price to the cost of a major repair. Many extended warranties cost about $1,000 per year, or a few thousand dollars over the life of the plan. For example, an engine or transmission repair or replacement can cost anywhere from $2,000 to $15,000, depending on the vehicle. If your car is at higher risk for major mechanical issues, a warranty could pay for itself with a single covered repair.
However, if your vehicle is reliable and repair costs are expected to be low, you may end up paying more for coverage than you receive in benefits. The decision comes down to your risk tolerance, budget and how long you plan to keep the car.
Peace of mind
Even if you never end up using an extended auto warranty, would you be glad you paid for it? If your answer is yes, then the peace of mind alone is worth it for you.
Consumer experience
Overall, consumer experiences with extended auto warranties are mixed. Some drivers report helpful coverage for unexpected repairs, while others report denied claims or communication issues.
For instance, Linda, a reviewer from Illinois, said they were frustrated with their extended auto warranty.
“Despite being a loyal customer for years and paying $5,000 for a comprehensive warranty, I have been met with nothing but frustration and unhelpful responses,” Linda said. “Trying to get through to management is nearly impossible[.] [...] My claim for a cracked axle, which should be clearly covered under my policy, was outright denied. The reason given was that the parts exceeded the value of my car — a claim that was not communicated to me by any salesperson or representative beforehand.”
» RELATED: How do extended car warranties work?
Questions to ask before buying a used car warranty
If you’re interested in a third-party extended warranty, the provider you choose can make a big difference in terms of cost, claims experience and more. These are the questions to ask before you make a decision.
- What’s covered and excluded? Ask for a list of specifically covered and excluded parts.
- Are there any additional benefits? Some providers offer trip interruption insurance, roadside assistance and car rental benefits.
- Is there a waiting period before coverage starts? Some plans don’t cover repairs right away, and there may be a waiting period of 30 days before coverage starts.
- Can I choose my repair shop? Find out where repairs must be done and if approval is required first.
- What are the deductible and out-of-pocket costs? Ask how much you’ll pay per visit or repair.
- Are there mileage or age limits? Used car warranties generally have age and mileage limits.
- How does the claims process work? Ask how claims are approved and how long it usually takes.
- Can I cancel the warranty? Confirm cancellation rules, fees and refund terms.
- Is the warranty transferable if I sell the car? Transferable warranties may provide more resale value.
FAQ
What is the best used car warranty company?
Our picks for the best used car warranty company for an extended auto warranty include Endurance Warranty, CarShield, Omega Auto Care, Premier Auto Protect, Zurich Vehicle Service Contract and American Dream Auto Protect. The best used car warranty company for you will depend on your vehicle’s make, age and mileage. Compare quotes from at least a few companies to find the best coverage for you.
Can I buy a warranty after purchase?
Yes, you can usually buy a warranty after purchasing a used car since third-party extended warranty companies generally offer plans for vehicles that are a few years old or have moderate mileage. However, eligibility often depends on the car’s age and mileage, and some plans may require an inspection or have a waiting period before coverage begins.
How long do used car warranties last?
How long used car warranties last depends on the car’s age and mileage and the type of coverage. Factory warranties typically last three years or 36,000 miles from the original purchase date, while powertrain coverage may extend to 5 years/60,000 miles or more. CPO warranties often add one to two years of additional coverage, while dealer warranties typically last a few months. Extended warranties typically last from one to 10 years, depending on the provider, plan and your vehicle’s age and mileage.
What are the warning signs of a used car warranty scam?
Some of the warning signs of a used car warranty scam include high-pressure sales tactics, constant outreach from representatives, a failure to provide sample contracts, vague coverage terms, companies with limited information online, requests for upfront payment and refusing to answer questions. To protect yourself, always ask for a written contract, verify the company’s reputation through independent reviews and avoid making payments until you fully understand the terms.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Federal Trade Commission, “Extended Warranties and Service Contracts.” Accessed July 18, 2026.
- California Department of Insurance, “Guide to Automobile Service Contracts, Extended Warranties and Other Repair Agreements.” Accessed July 18, 2026.
- National Association of Consumer Advocates, “Auto Issues.” Accessed July 18, 2026.
- Federal Trade Commission, “Used Car Rule.” Accessed July 18, 2026.
- J.D. Power, “Vehicle Software Updates Become More Routine, but Fall Short on Perceived Benefit, JD Power Finds.” Accessed July 18, 2026.
- RepairPal, “Car Reliability Rating.” Accessed July 18, 2026.
