Should you buy a used car warranty?

Once a new car's warranty expires you have the option of covering faults out of your own pocket or paying a third-party used-car warranty service to cover it for you.

Used car warranties profess to give you financial peace of mind by taking care of the garage bill if you encounter any issues with your car, but we've found that many come with too-high prices and limiting restrictions. 

Find your perfect second-hand car by viewing our used car reviews

What does a used car warranty cover?

You might assume that used car warranties would cover any repairs that aren't obviously down to wear and tear (a standard exclusion). But when we've analysed several third-party warranties in the past, we've discovered terms, conditions and caveats aplenty, all designed to limit when the provider has to pay out.

The reams of small print can be baffling and contradictory. For example, if a warning light prompts a trip to the garage and a fault is discovered, your warranty may not cover it. But if you ignore the warning and let the part break, this can invalidate your claim.

Our A-Z of terms and conditions further down the page should help you decode the lingo. 

Unlike used car warranties, car insurance is a legal obligation. Discover how to compare car insurance quotes and get the best deal.

The cost of car cover

Most warranties can be tinkered with, but improving the package will increase the price, and once you’ve fine-tuned the cover to what you want you may find yourself with a plan that can’t compete with relatively low average repair costs for most used cars.

Conversely, don’t be lured into a cheap deal that won't pay your repair fees, citing a long list of terms and conditions.

An alternative to buying a used car warranty would be regularly setting money aside for future repairs. You can then find a good, local mechanic that also offers value for money. If, however, you want the peace of mind that a warranty might offer, make sure you read the small print carefully before signing on the dotted line.

You can reduce the risk of needing a warranty by choosing a car that's less likely to need repairs. Our unique survey reveals the most reliable cars in the UK.

Should you buy a used car warranty?

It’s difficult to justify the cost of many used car warranties when you consider typical exclusions and pricey premiums alongside the low average annual expense of car repairs.

A car in the garage is already a stressful time and arguing over what constitutes wear and tear with your warranty provider to try and get your garage costs reimbursed is an extra headache you could do without.

If having a warranty to cover your car as it ages is important to you, consider buying a manufacturer extended warranty when you buy a new car. These tend to have fewer exclusions than their third-party rivals.

Avoid getting stranded at the side of the road for hours. Check out the best car breakdown providers 

Extended manufacturer-warranty schemes

Some car brands offer to extend their warranty on your car. 

Toyota owners, for example, can extend their cover up to ten years in total. For every subsequent year after the initial three-year warranty expires, Toyota will add a year’s warranty – on the condition that that scheduled maintenance is carried out within the Toyota dealer network. You can carry on extending cover up until the car’s tenth birthday or when it reaches 100,000 miles.

Obviously the catch is that, to take advantage, you are tied to having your car serviced by Toyota, rather than being able to shop around for a cheaper deal elsewhere. But you may consider this a price worth paying to avoid the risk of having to pay for expensive repairs. 

From dealerships to classifieds, discover the best place to buy a car

A-Z of terms and conditions

Wading through the seemingly endless terms and conditions of most car warranties is an exercise in patience even before you try to get your head around the vague terms that are open for interpretation.

Unfortunately, reading your policy is a necessary evil if you want to know exactly what cover you’re paying for. This A-Z guide will help you decipher the jargon.

• Age limit – warranties have a pre-set age limit for the car. If your car is approaching it then a warranty may not be worth it.
• Betterment – if a repair or new part makes your car more valuable, you may be expected to foot some of the bill.
• Claim limit – the maximum amount of money you can get per claim – ideally up to the value of the car, but not always.
• Consequential loss – where one car part failing damages another; an added expense not all policies cover.
• Excess – the percentage of each warranty claim you will have to pay. Some policies increase the excess as your mileage goes up.
• Garage choice – some providers have ‘approved’ garages. Using an alternative could leave you paying some of the labour rate.
• Labour rate – how much of a garage’s hourly rate the providers are willing to pay. Most don’t stretch to the amount franchise dealers charge, leaving you to pay the difference.
• Mileage – check to see if there’s an annual or overall mileage limit. If your car’s above it the warranty won’t pay for repairs.
• Pre-existing faults – any issues your car had before the warranty started may not be covered.
• Regulated provider – make sure your provider is regulated by the Financial Conduct Authority and you get a 14-day cooling-off period if you change your mind.
• Servicing schedule – you must keep your car serviced to the manufacturer’s schedule and keep any paperwork. Failure to do so can invalidate the warranty, as can fitting non-standard parts.
• Time limits – some warranties only allow you to claim after a certain period (e.g. 90 days). Any issues arising during that time would not be covered.
• Warning lights – If you ignore warning lights on your car’s dashboard the provider may refuse to pay out.
• Wear and tear – car parts that fail due to wear and tear are usually not covered. Even when they are covered, 'consumables’ such as tyres and brake pads won’t be included.

New or used, find a car that delivers on performance, reliability, safety and comfort with our expert pick of the best cars.