Buying a Used Car Warranty

One of the most worrying things about buying a second hand car is the thought that it might break down, maybe even before you've got it home. However, a warranty can help to ease those fears by covering you against mechanical breakdown. There are a number of different ways to buy a used car with a warranty, which can include off-the shelf policies, approved used car schemes and manufacturer's warranties for nearly-new cars.

Off the Shelf Policies

If you buy a second hand car from a private seller, you have far less protection from the law if things go wrong than if you buy from a dealer. If the car is 3 years old or more, the manufacturer's warranty will have expired, and you will need to buy an off the shelf policy if you want to be covered for mechanical breakdown. Used car warranties are widely available; shop around for cover as prices vary considerably from company to company. You'll also need to make sure that you compare policies like-for-like, as many will offer differing levels of cover. It's important to read the policy through carefully before buying, so that you know exactly what you're covered for, and what you need to do to keep the warranty valid.

Approved Used-Car Schemes

Most car makers now offer approved car schemes for vehicles under a certain age and mileage. These limits will vary from company to company, with some only including cars younger than 18 months with less than 18,000 miles on the clock, whilst others have more relaxed age or mileage limits. Cars in the schemes usually have verified histories, at least a year's warranty and come with a range of other benefits, such as membership of a breakdown service.

The warranty is probably the most valuable benefit of a used-car scheme. Most of the warranties offered are MBI (Mechanical Breakdown Insurance) policies, which mean that they're backed by insurance underwriters. However, it's worth reading the policy carefully, as few warranties offer the fully comprehensive protection you might be looking for. Unfortunately, those cars that suffer from the most faults and breakdowns tend to have the most exclusions, whilst quality cars from prestige marques have far better coverage.

Many schemes include a 'no quibble' exchange policy, which allows you to return the car for any reason and exchange it for another of an equivalent value. This must usually be done within the first 1,000 miles or the first month after purchase. Some companies may only offer a vehicle exchange if there's an identifiable fault that the dealer cannot remedy, or if one of the pre-sales checks turns out to be wrong.

You may be offered cover (usually as an optional extra) to protect you from unexpected repair bills for fixing faults that have lead to an MOT test failure. Some schemes may also include other specific benefits, such as free mobile phones, insurance for your keys and tyres, or no-claims money-back offers. Although it's not worth choosing a pol...

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