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Understanding the Terms of Used Car Warranties

Understanding the Terms of Used Car Warranties

Buying or selling a used car goes beyond checking its condition and haggling over the price. One crucial element that often plays a significant role in sealing the deal is the used car warranty.


These warranties can be the deciding factor in a purchase, which offers buyers confidence in their investment and helps sellers move their vehicles more swiftly at a better price.

In this blog post, we'll share important tips to help you understand auto warranties for used cars in Canada and how they matter when buying or selling a used car.


What is a Car Warranty?

A car warranty agreement between the car owner and the manufacturer outlines the manufacturer's commitment to fixing or replacing faulty vehicle components within a set timeframe. It usually covers parts and labor expenses and protects against unforeseen repair costs.



What are the Types of Car Warranties?

Curious about car warranties? They come in various types, each offering different levels of coverage and benefits. Let's explore the three main types: Standard, Service, and Extended Car Warranties.


1. Standard Warranties

Standard warranties are usually tied to a specific period or distance traveled, whichever comes first (e.g., three years or 60,000 km). These are great for drivers who don't plan on extensive travel or those considering a trade-in before the warranty period ends.


2. Service Warranties

Service warranties are commonly associated with new cars and cover various items, from brake pads to oil changes. Some Certified Pre-Owned (CPO) programs may also include them as incentives. Occasionally, you might find a slightly used car with a service warranty still intact.


3. Extended Car Warranties

Extended warranties for used vehicles provide coverage beyond the basic warranty and offer peace of mind after the standard warranty expires. These extended covers can range from three to five years, depending on the provider and coverage.

Instead of worrying about hefty repair costs down the road, you'll have the assurance of coverage. If transferable, these warranties can also be a valuable selling point when privately selling your car, potentially fetching a higher price.


How Much Do Used Car Warranty Costs in Canada?

The price varies based on the type and coverage. While a factory warranty is usually part of the car's price, car extended warranties may cost around $1,000 or more, depending on factors like the vehicle's make, model, and coverage level. Before buying, you must assess the cost and terms to make sure it's a valuable investment.



Are Extended Warranties on Used Cars Worth It?

Considering an extended warranty for your used vehicle? Here is a brief guide to assist you in making a decision:


  • Transferability: Check if original warranties are transferable, noting the remaining coverage.
  • Repair Requirements: Review the service contract to understand where repairs must be performed and ensure it aligns with your needs.
  • Cost Evaluation: Compare the warranty cost (typically $1,000 to $3,000) with potential repair expenses; be clear on what the warranty covers.
  • Vehicle Dependability: Assess the vehicle's quality and dependability ratings to gauge potential repair needs.


Making an informed decision can help you determine whether an extended warranty is a wise investment.


Advantages and Disadvantages of Used Car Warranties Canada

Extended warranties can be a smart choice for those wanting protection from unexpected car repair costs.


Here's a simple breakdown:


  • Shields against unexpected or pricey vehicle repair expenses.
  • Typically covers crucial components like the engine, transmission, and heating/cooling/electrical systems.
  • Available for used cars if they meet age, condition, and mileage criteria.



  • Not all car parts may be covered, so you must carefully review the terms and conditions.
  • Costs can be high, potentially exceeding out-of-pocket repair expenses.
  • Some warranties may include a deductible or fee for claim filings, adding extra costs.
  • Reports of difficulties in claiming warranty coverage have caused frustration among some customers.


For assistance in exploring these considerations, CarHub is here to help.



What Actions Could Void Your Car Warranty?

When protecting your car warranty, certain actions and oversights could potentially jeopardize it.


Be aware of the following factors:

  • Failure to adhere to scheduled vehicle maintenance
  • Incorrect use of fluids
  • Damage resulting from accidents
  • Misuse of the vehicle
  • Modifications impacting factory car part performance
  • Altered odometer readings
  • Use of non-manufacturer-approved parts
  • Ignoring warning lights or messages in the car
  • Improper registration and titling of the vehicle in your name


Stay informed to make sure your warranty remains intact and effective.


Begin A Smart and Secure Car-buying Experience - Connect with CarHub Now

Understanding car warranties in Canada is essential when buying a vehicle. These warranties ensure customers won't be responsible for most vehicle repairs or labor costs.


Considering buying a used car but worrying about warranties? You can rest easy with CarHub as your reliable dealership that offers used cars with warranties. Contact us today to discover various options tailored to meet your needs.

Categories: The More You Know

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