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Find out all you need to know about warranties for used cars, including factory warranties, vehicle service contracts, and certified pre-owned cars.
Find out all you need to know about warranties for used cars, including factory warranties, vehicle service contracts, and certified pre-owned cars.
You go to the dealer’s lot. A friendly, potentially overenthusiastic, salesperson shows you around, and maybe you find the Honda Pilot you’ve always wanted, just in Solar Silver Metallic instead of Smoke Blue Pearl.
Then you move into the office. Between the excitement and the finance talk, your head is spinning. And then comes the casual mention of an extended warranty. The salesperson makes it sound like no big deal, but then you hear the price.
You sit up straighter and think, Do I really need an extended warranty?
The answer isn’t a simple yes or no. It’s more of a careful assessment based on the car’s history, whether it’s still under factory warranty, how long you plan to keep it, and whether the cost of repairs will wreck your savings. Not to mention the choice about where to purchase it from: manufacturer, independent dealer, third-party provider?
There isn’t a specific used-car warranty; rather, the phrase is an umbrella term that can refer to factory coverage, a CPO warranty, a dealer warranty, or an extended warranty. Basically, it’s any coverage for a used car, and it can come with the car or be purchased separately.
Below, we’ll discuss CPO and dealer warranties in more detail. For now, the key difference to know is between factory and extended warranties—a term commonly used to refer to vehicle service contracts (VSCs).
Simply put, a factory warranty comes with every new car. You don’t pay an additional fee, and the coverage usually lasts for a set number of years or miles. It lapses with whichever one you reach first. For example, if you’ve driven 36,000 miles in under three years, that’s it for the bumper-to-bumper coverage.
The exact terms will depend on the manufacturer and the model year.
For example, Jaguar’s new 2016–2026 models are under a comprehensive bumper-to-bumper warranty for 5 years/60,000 miles. Meanwhile, Lexus’s new 2000–2026 models are under full warranty for 4 years/50,000 miles and under powertrain warranty for 6 years/70,000 miles.
Other manufacturers favor a 3-year/36,000-mile bumper-to-bumper plan, with a 5-year/60,000-mile plan for powertrain coverage.
Electric vehicle (EV) factory warranties operate a bit differently. Federal law dictates that EV manufacturers have to provide battery cover for at least 8 years/100,000 miles.
The California state government increased this to 10 years/150,000 miles. Some manufacturers, like Rivian and Tesla, also boost the mileage covered.
That has an effect on extended-warranty coverage. Unless you pay for premium battery coverage, most agreements will focus on other electronic components.
In a case where the battery is still under warranty but other parts are no longer protected, an extended warranty or wrap coverage (which adds items to a powertrain warranty) can offer peace of mind.
Any extended coverage is optional, and there are two main options:
Chaiz data shows that an extended warranty (technically a VSC) can be counterintuitive for vehicles with under 40,000 miles on the odometer—a claim supported by a 45% cancel rate.
Compare that to a 28% cancel rate for 80,000–120,000-mile vehicles, and you can see which owners benefit most from VSC protection. We’ve also seen that 2015–2025 models hit the sweet spot in terms of coverage quality.
An extended warranty may not be necessary if
On the other hand, an extended warranty is advisable if
To check whether the factory warranty is still active, all you need is the VIN. You’ll be able to find this 17-digit number in a few places: the driver’s side dashboard (near the bottom of the windshield), the sticker on the driver’s side door, or documentation, like registration or insurance papers.
If you’re still in the purchase stage, the dealership should be able to provide the VIN from their records.
Once you have the VIN, run it through a reliable free tool. You should be able to find the coverage status and start date that way.
The factory warranty takes effect from the date of the original sale—you’ll see that referred to as the “in-service date.” If you buy a vehicle before the in-service cutoff date, and if the current mileage is under the cutoff limit, the warranty is still active.
If that is the case, you have time to decide whether you want to extend the factory coverage or rather pursue an extended warranty through a third-party provider, either now or at a later date.
If the factory warranty has expired and you decide that extended coverage is the right move, you can explore independent providers.
When it comes to extended coverage, you have a choice between plans. The exact coverage will depend on the provider, and you should always check the contract carefully to see what is and isn’t included, as well as any terms and conditions.
These are the plan types that are most common:
You may also hear about inclusionary (stated-part) and exclusionary plans. A powertrain warranty is a type of inclusionary contract. These agreements explicitly state which parts and repairs are covered. If it’s not mentioned, the warranty provider won’t pay for it to be fixed.
Exclusionary plans cover everything except what the agreement states doesn’t apply. Because they are more comprehensive, they are usually more expensive than inclusionary warranties.
If “best” means comprehensive, then an exclusionary bumper-to-bumper warranty would be the top option. But there is another category of used vehicles that will consistently come out on top in terms of best cover: certified pre-owned (CPO) vehicles.
Unlike used cars from non-franchised dealerships, CPOs come with a manufacturer-backed warranty extension.
For a vehicle to become certified, it has to go through detailed inspections and undergo a reconditioning process. The thoroughness of that process is what makes buying a CPO such a draw, and why it’s considered the better option when buying a used car.
A big selling point is that CPOs are lightly used. Often, they’re trade-ins of recent models or cars that were leased.
Eligibility requirements aren’t universal. Some manufacturers have a 60,000-mile cap, while others make 80,000 miles the cutoff point.
Age-wise, cars that qualify for certification must be under five to seven years old. Additionally, they must have a clean title history and no record of major accidents, among other requirements.
Another draw is that CPOs usually come with a limited manufacturer’s warranty that extends the factory coverage. The terms are not always identical to the original warranty, so it’s important to check the paperwork.
The extended bumper-to-bumper coverage is generally limited to 12,000 miles or an extra year or two. It might take effect after the original warranty lapses. Otherwise, the manufacturer will use the original owner’s purchase date as a starting point—something that’s more common with powertrain extensions.
If the factory warranty has already expired, then the extension normally takes effect at the time of the CPO purchase.
Multi-point inspections, necessary repairs, and the extended warranty contribute to the higher price. Another portion of the higher cost can be attributed to the extra benefits, like access to loaner cars, roadside assistance, and travel-interruption insurance.
What makes CPOs worth the price is the fact that they have been so thoroughly checked. A manufacturer’s backing provides peace of mind, and the restoration process means the car is in top condition at the time of purchase.
On August 31, 2026, the Minnesota Attorney General’s Office released a statement announcing that their complaint against Midwest Car Search, an independent dealership located in Fridley, Minnesota, had been settled.
The case is particularly relevant here because the Attorney General’s original complaint against the dealership and its owner listed five practices commonly used to defraud used-car buyers.
Some independent dealers take a vehicle, add a third-party warranty, and give it the misleading label of “certified.” Only a manufacturer’s franchised dealers can sell its brand’s CPOs. In other words, you aren’t going to get a legitimate Ford CPO anywhere but an official Ford dealership.
“Packing” is a term sometimes used when dealers include optional products, like a VSC, into the sale without disclosing it to the customer. The fee then gets buried in the monthly repayment.
The FTC’s Used Car Rule makes provision to prevent the exploitation of Spanish speakers. If a sale is conducted in Spanish, all related disclosures, including the Buyer’s Guide, must also be provided in Spanish.
Most states require dealers to make provision for implied warranties (more on this below). Many dealers also offer a 30-day warranty that covers major mechanical parts, and they have to honor those terms.
Dealerships must display a Buyer’s Guide prominently on any vehicle that’s for sale, as well as on any vehicle that a customer will inspect for the purpose of buying. Only Maine and Wisconsin are exempt because they have similar regulations about disclosures on used vehicles.
The FTC’s Used-Car Rule states that car dealers are required to display a Buyer’s Guide as a window sticker on every used vehicle in their lot. The guide tells buyers whether the dealer offers a warranty. If it does, the terms and conditions need to be stated, including
The Buyer’s Guide also includes advice for buyers:
This document overrides the sales contract, so make sure that any negotiated changes in the warranty coverage are reflected in the Buyer’s Guide.
If the warranty coverage is marked “as is,” that means you’ll be responsible for any problems or needed repairs. If the salesperson makes any verbal promises about repairs, these need to be written on the Buyer’s Guide.
The same goes for any spoken agreements, regardless of what coverage is offered. If they’re not written on the Buyer’s Guide, you’ll have a hard time getting them legally enforced.
The implied warranty of merchantability exists to protect consumers. It is an unspoken, unwritten guarantee that the vehicle you purchased, or are in the process of purchasing, is functional for everyday use.
For the implied warranty to be waived, it firstly needs to be allowed in the state. New York, Vermont, and Washington are among the states that prohibit or limit waivers. If the state does allow the warranty to be waived, the dealer has to make it clear—through written disclaimers—that the vehicle is for sale “as is.”
There is no federal-dictated limit on implied warranties, so how long they are valid for will depend on your state.
Although every car on the lot is supposed to meet a minimum quality standard, this is not a guarantee of a perfect car. The car should be fit to drive, and it should be in average condition for the price paid.
If there are warning signs and you miss or don’t act on them, it could count against you. That’s part of why inspecting the vehicle before purchasing is so important.
Cost is determined by two broad factors: where you purchase the warranty from and the details of the plan.
Manufacturer-backed extended warranties are more expensive. Some car owners choose to pay the higher price because the warranty is designed for the specific make and model. Plus, factory-trained technicians normally carry out the work and use original equipment manufacturer parts.
When it comes to non-franchised dealers vs. third-party providers, getting a service contract through a dealer is the pricier option.
Independent dealerships can’t offer true manufacturer-backed warranties. Instead, what you’re being asked to purchase is a service contract from a third-party company. Because they earn a commission on the sale, the markup is usually much higher than if you were to purchase directly from the third-party provider.
The cost tends to be rolled over into the car loan. That boils down to paying extra interest on the coverage over time.
The most affordable option? Chaiz. Because there are no dealership markups, purchasing through the online marketplace is up to 60% cheaper.
In terms of specific plans, how much you’ll pay will depend on
We started off talking about a used Honda Pilot, so let’s use it to illustrate a very rough estimate of pricing.
The best extended warranties for used cars provide varied coverage tiers and offer adequate protection for a reasonable price. An important tip is to be mindful of hidden expenses, deductibles, and administration fees.
What’s best for you may ultimately be determined by your budget. A comprehensive warranty might not be as feasible as a powertrain warranty. If that is the case, then a great starting point is to compare quotes and coverage.
This will depend on your plan. If you only have powertrain protection, things like air conditioning and heating, as well as infotainment systems, electric charging, steering, and suspension failures won’t be covered.
No warranty or vehicle service agreement is going to cover everything. Wear-and-tear items, like brake pads, tires, batteries, and so on won’t fall under warranty. Cosmetic components, custom parts, and damage from environmental events also won’t be covered.
Dealership warranties are typically more expensive than when you buy directly from third-party providers. They can also come with limitations on where you can have the vehicle serviced. Consider all your options before deciding to buy from a dealership.
If the car you’re buying still has factory coverage, an extended warranty can be an unnecessary extra expense. If you’re able to self-insure by maintaining a dedicated repair fund, skipping the warranty minimizes costs and claim-related admin.
If you won’t be able to cover unexpected repairs, an extended warranty is definitely worth considering. It’s also worth it if your used car is older and has high mileage.
At a dealership, make sure the Buyer’s Guide is on the car. Ask for information about the warranty, and pay close attention to the monthly payment breakdown and the paperwork.
Be wary of vague language, both in the contract and the sales pitch. No clear cancellation policy is another red flag, doubly so if you aren’t given a sample contract. Be wary of high-pressure sales tactics and salespeople who rush you to purchase.
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