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Used Car Warranties

Used car warranties are a very important feature when purchasing a used vehicle. Many times the warranty has expired leaving you to pay for any "mishaps" that happen after the purchase is made. There are different types of used car warranties. With luck, you will find a used car that has one of these warranties still active.

Private sellers do not have to offer any kind of warranty when they sell their vehicle. Choosing to buy from a private seller will make the purchase labeled "as is". You will be responsible for any maintenance costs that may arise after you have bought the vehicle. When you sign the purchase agreement you are stating that your now responsible and accept the vehicle in its current condition.
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Car dealerships are required by law to provide for every vehicle on their lot a buyers guide. A buyer's guide informs the purchaser of any type of warranty that is offered. The common used car warranties include: "as is"; verbal warranties; warranty of merchantability; limited warranty; unlimited warranty; unexpired manufacturer's warranties; and extended warranties. As you can see there are many different used car warranties available that can save you costs in the future.

An "as is" warranty means the dealer is not responsible in anyway (same as a private seller). A verbal warranty may be made by the dealer but is not legally binding. A warranty of merchantability is an implied warranty that states the dealer guarantees the car will do what it is expected to do. To make that simple - the car will run. This warranty does not cover anything that goes wrong or needs service of any kind. Used car limited or unlimited warranties do not cover the entire car or all the cars parts. The warranty coverage that is stated on the buyers guide is the only coverage at the time of purchase. An unexpired manufacturers warranty is available on later models of vehicles when the original warranty is still effective. This type of warranty can be extended by calling the manufacturer directly. Used car warranties labeled as an extended warranty is basically the selling of a service contract which is added onto the price of the vehicle.

The newest phenomenon is certified vehicles. These vehicles are assured by dealerships to be mechanically sound. The dealerships mechanics have verified that all components and parts are working and free of problems. A certified vehicle goes above and beyond all of the other types of used car warranties.

Understanding the different kinds of used car warranties available is very important before you sign any final purchase papers. Make sure your dealer informs you of all warranties that exist on the vehicle you choose, or any optional warranties available. Any type of a used car warranty is better than not having one at all. Vehicle coverage under a warranty saves you money and aggravation that may occur down the road.

Related Content:

  1. Used Car Reliability
    1. Before you buy a used car you want to make sure it won’t break down within weeks of purchasing it.
  2. Buy a Second Hand Car
    1. When a private seller is selling their car you have to wonder why. Are they looking to dump a bad car onto someone else?
  3. Buying Used Car Tips
    1. Purchasing a vehicle should be an exciting time, especially if you’re a first time buyer. It is possible to make this an exciting adventure if you take some time to research used car buying tips and how the whole auto sales process works.

Basic Financing Requirements

  • At least one year at the same employer for those with no credit rating.
  • At least two years of employment history for those with some kind of credit history.
  • Minimum monthly gross income of $1500.00.
  • Money down may be required, but is not necessary in every case.
  • No repossession within the last 12 months unless included in a bankruptcy.
  • No motorcycle or private party purchases.
  • Must reside in the United States or Canada.
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