A used car warranty may help cover certain repair costs if a problem arises with your used car, such as a mechanical or electrical fault, but the level of cover depends on the agreement, the vehicle’s age and mileage, and any exclusions.
At The Motor Ombudsman, we provide information to consumers and accredited businesses when disputes arise about vehicle sales, repairs, servicing and warranties.
What is a used car warranty and do you need one in the UK?
A used car warranty may cover the cost of repairing or replacing specified parts if they fail during the warranty period. Some warranties are limited to major components, while others include a wider range of mechanical and electrical parts.
Whether you need one will depend on the vehicle, any existing cover, the warranty cost and the repair risk involved. A newer used car may still have manufacturer warranty remaining, while an older vehicle may be sold with a dealer warranty or optional third-party policy.
A warranty provides additional protection, separate from your statutory rights. The terms of the agreement should explain what is covered, what is excluded and what conditions must be followed if a claim is made.
Used car warranty law UK: your rights under the Consumer Rights Act 2015
A used car warranty is separate from your legal rights. If you buy a used car from a dealership, the vehicle should meet the requirements set out in the Consumer Rights Act 2015. This means it should be of satisfactory quality, fit for purpose and as described.
What is considered satisfactory will depend on the car’s age, mileage, price, condition and any information provided before purchase. An older, higher-mileage car would not usually be judged in the same way as a nearly new vehicle.
If a fault appears soon after purchase, the timing can affect the options available. Within the first 30 days, a consumer may have the short-term right to reject the vehicle if it does not meet the required standard. After this, the dealership may have the opportunity to repair or replace it.
If the issue arises within the first six months, it is generally for the dealership to show that the vehicle met the required standard at the point of sale. A warranty may provide additional cover during this time, but it does not remove the dealership’s legal responsibilities under the Consumer Rights Act 2015.
Types of used car warranties explained
A dealer warranty may be included when a used car is sold. This is usually offered by the dealership and may run for a short period after purchase.
A third-party, aftermarket or extended warranty is normally provided by a separate warranty company. Consumers may be offered this at the point of sale or buy it later, depending on the provider’s rules.
A manufacturer warranty may still apply if the vehicle is within the original warranty period or mileage limit. This can be helpful when buying a nearly new car, although the terms should still be checked carefully.
What does a used car warranty cover?
A used car warranty may cover specified mechanical or electrical failures, such as problems with the engine, gearbox, fuel system, cooling system or certain electrical components. The exact cover will depend on the policy.
Exclusions are just as important as the list of covered parts. A warranty may not cover wear and tear, routine servicing, tyres, brake pads, clutch wear, cosmetic issues, pre-existing faults, missed servicing or repairs carried out without authorisation. You should check the list of what is and is not covered very carefully to decide whether the warranty you are buying offers good protection and is suitable for your needs.
You should also pay specific attention to whether there is a claim limit, excess payments, mileage restrictions or a maximum labour rate payable under the policy as this may affect any payouts if required.
Before relying on a vehicle warranty, check whether the part is covered, whether the cause of failure is included, and whether the provider must approve the repair before work starts.
Used car warranty vs manufacturer warranty: what’s the difference?
A manufacturer warranty is provided by the vehicle manufacturer and usually applies from the date the car was first registered. It may transfer to subsequent owners if the car remains within the time or mileage limits and the warranty conditions have been met.
A used car or extended warranty is usually separate and may be provided by a dealer, warranty provider or third-party administrator. Two cars of a similar age can therefore have different protection depending on what was supplied or purchased.
Are used car warranties worth it?
A used car warranty may be worth considering if it offers clear cover for the parts most likely to be expensive to repair. However, value depends on the warranty cost, claim limits, exclusions, and the vehicle’s condition.
Consumers may wish to compare the warranty price with likely repair costs. Check whether the car already has cover and consider what evidence may be needed for a claim. A low-cost policy may be less helpful if it excludes key parts or has a low claim limit.
What to check before buying a used car warranty
Before buying a warranty, check:
- Which parts are covered;
- Which faults and causes of failure are excluded;
- Whether wear and tear is included;
- The maximum claim limit;
- Any excess payable in the event of a claim;
- Whether there is a mileage limit;
- Labour rate limits;
- Servicing requirements;
- Whether repairs need prior authorisation;
- Whether diagnostic costs are covered;
- When the warranty starts and ends; and
- Who provides and administers the cover.
It can also help to keep copies of the advert, sales paperwork, warranty booklet, servicing records and any messages with the seller or warranty provider.
The Motor Ombudsman always recommends using a warranty provider accredited to its Motor Industry Code of Practice for Vehicle Warranties. A list of accredited businesses can be found here.
What to do if your warranty claim is rejected
If a warranty claim is rejected, ask for the reason in writing and compare it with the warranty terms. The provider may say the part is excluded, the issue is wear and tear, the vehicle was not serviced correctly or repairs began before authorisation.
If you disagree, gather evidence such as the warranty agreement, diagnostic report, service history, invoice, photos and correspondence. You can then raise the issue with the business and allow it to respond.
Where the complaint remains unresolved, consumers may be able to make a complaint through The Motor Ombudsman if the business is accredited to one of our Codes of Practice and the dispute falls within our remit. This can include eligible disputes about used car sales, faulty vehicles, repairs and car warranty issues.
