AutoSavvy's Guide to Comparing Used Car Warranties

Buying a used car raises an important question: what happens if something breaks? That's where warranties come in.

Used car warranties differ from new car warranties. They typically cover less and last for shorter periods. But they still provide important protection against unexpected repair costs. Understanding warranty options matters for budgeting and peace of mind. This guide covers common types of used car warranties and coverage levels to help you find the best option for your needs.

With nearly 20 years of experience with used cars and warranties, AutoSavvy specialises in branded titles and has sold over 100,000 vehicles. Decades of experience has taught them what buyers need to know about warranty protection and now they're sharing these inside tips here.

Types of Used Car Warranties

Used car warranties fall into several categories depending on where you buy and the vehicle's condition. Vehicle history matters. Cars with branded titles (previously declared a total loss and rebuilt) may not qualify for manufacturer warranties but can still get other coverage.

Commonly used car warranty types include:

Factory Warranty
Certified Pre-Owned (CPO) Warranty
Dealer Warranty
Extended Warranty
Third Party Warranty

1. Factory Warranty

A factory warranty is the original warranty from the vehicle manufacturer. It transfers to new owners if the coverage period hasn't expired.

When Available: The car must have a clean title with no major damage history. Regular maintenance records are required.

Pros: Comprehensive coverage honored at any brand dealership.

Cons: Most used cars have exhausted their factory warranty. Branded title vehicles lose manufacturer warranty when declared a total loss.

Best For: Nearly-new used cars with clean titles from franchise dealerships. Not applicable for branded title vehicles.

2. Certified Pre-Owned (CPO) Warranty

CPO warranties are special programs where manufacturers inspect used cars and add extended warranty coverage.

When Available: Cars must be relatively new (under 5-6 years), low mileage (under 80,000 miles) and have clean titles. Branded title vehicles don't qualify.

Pros: Extended coverage with manufacturer backing, often includes roadside assistance.

Cons: Higher purchase price, strict requirements and not available for branded titles.

Best For: Buyers wanting maximum peace of mind who can afford higher prices. AutoSavvy customers often prefer saving thousands upfront rather than paying CPO premiums.

3. Dealer Warranty

A dealer warranty comes from the dealership selling the car, not the manufacturer.

When Available: Depends on dealer policy. Can cover vehicles that don't qualify for factory or CPO warranties, including older cars and branded titles.

Pros: Available for vehicles excluded from manufacturer warranties. AutoSavvy offers a free 4-Month/4,500-Mile Limited Comprehensive Warranty with qualifying vehicles (8 model years old or newer, under 100,000 miles).

Cons: Coverage varies by dealer. Usually must return to that specific dealer for repairs.

Best For: Buyers of vehicles that don't qualify for manufacturer warranties. For branded title buyers, dealer warranties are often the best available option. However, the reality is that buyers are often hard pressed to find a dealer that will offer any kind of warranty on a branded title vehicle. For this reason, AutoSavvy's option is an excellent option for branded title buyers to consider.

4. Extended Warranty

An extended warranty (or vehicle service contract) provides coverage after the original warranty expires. You can buy it at purchase or later.

When Available: Available for most vehicles, though very old or high-mileage cars may not qualify.

Pros: Choose your coverage level and length. Provides predictable costs instead of surprise repairs.

Cons: Costs money upfront or monthly. Complex terms with many exclusions.

Best For: Buyers keeping their car long-term who prefer predictable costs. For example, AutoSavvy customers can purchase extended coverage through Endurance beyond the included 4-month warranty.

5. Third Party Warranty

Third party warranties come from companies specializing in vehicle protection, not manufacturers or dealers.

When Available: Cover a wide range of vehicles, including older cars and branded titles. Requires application and approval.

Examples: Companies like Endurance and CarShield. AutoSavvy's free 4-month warranty is administered by a warranty company at no cost to buyers.

Pros: Cover vehicles other warranties won't. Flexible payment plans. Often usable at any licensed repair shop.

Cons: Quality varies between companies. Some have claim denial issues. Need to read the fine print carefully.

Best For: Vehicles that don't qualify for traditional warranties, especially branded titles. Since manufacturer warranties are void on branded titles, third party coverage is often the only option.

Know Your Coverage Options

A warranty is the agreement or contract. Coverage is what that warranty actually protects. The warranty type is WHO provides protection. The coverage level is WHAT they're protecting.

Common coverage options include:

Bumper to Bumper Coverage
Powertrain Coverage
Stated Component Coverage

1. Bumper to Bumper Coverage

Bumper to bumper is the most comprehensive coverage option, protecting most mechanical and electrical components.

What's Covered: Engine, transmission, electrical systems, air conditioning, heating, steering, brakes, suspension and most other components.

Pros: Broadest protection available with fewer surprise expenses.

Cons: Most expensive option, typically short coverage periods on used cars and wear items like brake pads not covered.

Best For: Buyers wanting maximum protection on newer used vehicles. AutoSavvy's included 4-month warranty is comprehensive coverage that offers significant value for branded title vehicles that no longer qualify for factory comprehensive warranties.

2. Powertrain Coverage

Powertrain coverage focuses on components that make your car move. It's more limited than bumper to bumper but covers the most expensive repairs.

What's Covered: Engine, transmission, drive axles, and transfer case (in four-wheel drive).

Pros: Costs less than comprehensive, often longer coverage periods and protects against the most expensive failures.

Cons: Everything outside the powertrain isn't covered including electrical, air conditioning, steering and suspension issues.

Best For: Buyers wanting basic catastrophic failure protection without comprehensive coverage costs. Some extended warranties for branded titles focus on powertrain coverage to keep costs down.

3. Stated Component Coverage

Stated component coverage lists specific parts covered. Nothing else is included. It's the most limited coverage type.

What's Covered: Only specifically named components. Example: 'engine' might only cover internal components, not belts, hoses or sensors.

Pros: Least expensive option, clear about what is and isn't covered.

Cons: Very limited protection, most problems not covered and can be frustrating when something breaks that's not exactly a covered component.

Best For: Tight budgets wanting some major component protection, or older high-mileage vehicles where comprehensive coverage isn't available.

How to Choose Your Used Car Warranty

Choosing the right warranty depends on your budget and the vehicle you're buying. Here are the key considerations:

Vehicle History Matters: Clean title vehicles qualify for factory and CPO warranties. Branded title vehicles typically only qualify for dealer or third party warranties. However, you save thousands on the purchase price.
Match Coverage to Your Needs: How would a $2,000 repair bill affect you? Consider your savings and risk tolerance. Newer cars justify comprehensive coverage. Older cars might only need powertrain protection.
Read the Fine Print: Understand exclusions, deductibles and which repair shops you can use. Know how long you plan to keep the car.
For Branded Title Buyers: Rebuilt title vehicles from AutoSavvy don't carry manufacturer warranties, but you save significantly on purchase price. Every qualifying vehicle includes comprehensive warranty coverage for 4 months or 4,500 miles, whichever comes first. Vehicles go through a 151-point inspection plus DMV inspection.

Navigating warranty options can seem complex, especially for branded title vehicles. But the trade-off is clear: pay thousands less for a thoroughly inspected vehicle with dealer-backed warranty protection included. You can extend that protection if needed.

The experts at AutoSavvy, emphasise the importance of transparency when deciding on coverage options and providers. Demand that providers and resellers: