What You Should Know (2024)

If your used car is covered under warranty and breaks down, you’ll want to take it to a repair shop for diagnosis. In most cases, your plan or contract administrator will pay the repair shop directly, minus your deductible. However, only the components and parts that are covered under warranty will be paid for.

Do Used Cars Come With a Warranty?

At the dealership, the Buyers Guide will let you know whether or not a used vehicle has a warranty. If a used car currently has some of the factory warranty left, you don’t need to buy a warranty right away.

Some dealers offer their own free warranties that are usually short and last a few months or less. This is really just a small perk that shows the dealer will take responsibility for any problems that come up soon after your purchase.

Lemon Law for Used Cars

Many states have strict contingencies when it comes to lemon laws on used cars. For example, in Arizona, your used car is only covered if a major car part breaks before 15 days or 500 miles after purchase — whichever comes first. Some states have looser rules, like Massachusetts, where you can get completely refunded for your used car if it’s under 125,000 miles and there’s a significant defect that threatens your driving ability or your safety.

California, Connecticut, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico and New York have robust lemon laws for used cars. These laws essentially require used cars to come with a warranty depending on the condition of the car. The dealership must repair any problems the vehicle presents for a specified period of time. If the dealer keeps trying to fix recurring problems and nothing improves, the dealer is required to give you a new vehicle or refund you.

Is There a 30-Day Warranty on Used Cars?

Whether or not a used car will have a 30-day warranty depends on the state where you live and where you purchased your car. In the U.S., there are no protections at the federal level requiring a 30-day warranty on a used car.

There are various types of used car warranties that could be listed on the vehicle when you purchase it. These include “as-is,” “warranty of merchantability” (where the vehicle is running like it is supposed to), “warranty of fitness” (meaning it is safe to sell) and the factory warranty still being applied on the vehicle.

In addition, some states have a grace period where you can change your mind and return the vehicle, but this is not required under federal law. We recommend checking with your dealership for their particular policy on returns and service after the purchase.

Do Warranties Transfer on Used Cars?

In most cases, the vehicle protection provided by a warranty on used vehicles can be transferred. You will need to contact the dealership or warranty company that you received your warranty contract from and let them know that you sold your car or that you transferred the warranty within the first 30 days of owning the vehicle.

In addition, most used car warranty companies will allow you to cancel your warranty coverage within the first 30 days. If you paid the full amount for your plan up front, you should receive the entire amount back and if you only placed a down payment you should receive it back.