Used car warranties explained: what they cover
The three kinds of used car warranty, what each usually leaves out, and why a warranty adds to your Consumer Rights Act 2015 rights rather than replacing them.
Updated
A used car warranty is a promise to pay for certain repairs. It is useful, but it is not the same as your legal rights, and it rarely covers everything. If you buy from a dealer, the Consumer Rights Act 2015 already says the car must be of satisfactory quality, fit for purpose and as described. A warranty sits on top of that. It cannot take any of it away.
So the first question is never "does the warranty cover this?" but "is this a fault the dealer is responsible for anyway?" Within the first months, the answer is often yes.
The three kinds of warranty
| Type | Who stands behind it | What to check |
|---|---|---|
| Remaining manufacturer warranty | The car maker, through its dealer network | The start date, the time and mileage left, the servicing conditions and whether it passes to a new keeper |
| Dealer warranty | The dealer that sold you the car | What it covers, who carries out repairs and whether it is free or paid for |
| Third-party warranty or warranty insurance | A separate company or insurer, often sold by the dealer | Claim limits, exclusions, labour rates, the excess and the provider's name |
Remaining manufacturer warranty
Many manufacturer warranties run for a set number of years or miles from first registration, whichever comes first, and usually stay with the car when it changes hands. The terms vary by maker, so read the warranty booklet or ask a franchised dealer for the start date and the expiry.
The common catch is servicing. Many manufacturer warranties expect the car to have been serviced on time, to the maker's schedule. Ask for the service record and the invoices. A missing service can lead to a refused claim. Electric and hybrid cars often have a separate battery warranty with its own terms, so ask for those too.
Dealer warranty
Some dealers include a warranty in the price. Others sell one. If it is given without extra charge, section 30 of the Consumer Rights Act 2015 treats it as a binding contractual promise. It must be in plain language, state the name and address of the business giving it, the length and where it applies, and say that your statutory rights are not affected.
Check whether you must use the dealer's own workshop for repairs. That can be awkward if you live far away.
Third-party warranties and warranty insurance
These are sold by a separate company, often at the point of sale. Some are insurance policies. Others are service contracts. Ask which it is, because it changes where you complain. An extended warranty that is insurance falls under the Financial Ombudsman Service, which handles complaints about extended warranty insurance once the business has had a chance to respond.
What warranties usually leave out
The details change from policy to policy, but the same limits come up again and again.
- Wear and tear. Brake pads and discs, clutches, tyres, wiper blades, bulbs and batteries are often excluded or covered only in part.
- Claim limits. A cap per claim, a cap over the life of the policy, or a cap linked to the car's value.
- Labour rates. A maximum hourly rate that may be below what your garage charges, leaving you to pay the difference.
- Excess. A fixed amount you pay on each claim.
- Pre-existing faults. A fault that was already there when the cover started.
- Waiting periods. Some policies do not pay for claims in the first days or weeks.
- Servicing conditions. Cover can depend on servicing on time and keeping the invoices.
- Authorisation first. Many policies require approval before any work starts. A repair done first and claimed later can be refused.
Ask for the full terms before you agree to buy. Read the list of what is excluded before the list of what is covered.
How a warranty fits with your legal rights
Your rights under the Consumer Rights Act 2015 run against the dealer, whether or not you have a warranty, and no term can remove them. In practice:
- Within 30 days: if the car is faulty, you can reject it for a full refund. You do not have to make a warranty claim instead.
- Within 6 months: a fault is presumed to have been there at sale unless the dealer proves otherwise. The dealer must repair it at its own cost, with no excess and no labour-rate cap.
- After 6 months: your rights continue, but you may need to show the fault was there at sale. This is where a warranty often becomes the easier route.
If a dealer tells you to "claim on the warranty" for a fault in the first months, you can point to your statutory rights and ask the dealer to fix it under the Act. Our guides to the Consumer Rights Act and used cars and to rejecting a faulty used car set out each step.
Under the Digital Markets, Competition and Consumers Act 2024, a trader must not present rights you already have by law as a special feature of its offer. A warranty should offer something on top.
Is a paid warranty worth it
That depends on the car, the price and the terms. Ask yourself:
- How old is the car, and what is the mileage? The older the car, the more claims are likely to be refused as wear and tear.
- What does the model commonly fail its MOT on at this age? Our MOT pages show each model's fail rate by age and the items it most often fails on.
- What would a typical repair cost compared with the cost of the warranty and the excess?
- Can you cancel, and get a refund, if you change your mind?
If you can put aside the cost of the warranty yourself, a repair fund may suit you better. If an expensive failure would leave you stuck, cover with clear terms can help. Either way, ask for the invoice for any repairs the dealer has done, and see the car with a mechanic before you buy.
Frequently asked questions
Does a used car warranty transfer to the new owner?
A remaining manufacturer warranty usually stays with the car. Dealer and third-party warranties depend on their terms, and some end when the car is sold. Ask for the terms in writing.
Do I need a warranty if I buy from a dealer?
You do not need one to have rights. The Consumer Rights Act 2015 already protects you if the car was faulty at sale. A warranty can help with faults that develop later, after the first 6 months, subject to its terms.
Can a dealer make me claim on the warranty instead of fixing the car?
No. If the car was faulty when you bought it, the dealer is responsible under the Act. You can choose to use the warranty, but you do not have to.
Will missing a service void my warranty?
It can. Many warranties require servicing on time to the manufacturer's schedule. Check the terms and keep every invoice.