The 6 types of warranties on used cars
First off, before you buy a used car in mesa Arizona, look for the warranty in writing. The FTC requires that a used car vendor bundle any used car with a “buyers guide” that explains in writing the conditions and policies of the vendor. That being said, you should be ready for these following types of warranties. This goes usually for vendors who are real businesses in the state of Arizona or the cities of Phoenix, Tempe, and Mesa. Individual sellers will be a lot more varied since they are not professionals and used car sales do not fall under the FTC laws.
1. As Is
The simplest type of warranty is no warranty at all. If this is described in the buyers guide, then the dealer will not do anything further to repair the car or take it back after the sales transaction is completed. The dealer or seller may state that he or she guarantees to pay for repairs or refund the buyer, but this will need an additional contract that you have to get in writing for it to bear fruit. If you live in one of the following states: Vermont, Maryland, Maine, Massachusetts, Connecticut, Minnesota, Mississippi, Kansas, New Jersey, New York, West Virginia, Rhode Island, and the District of Columbia, then the state prohibits the seller from using this type of warranty! In a few other states, New Hampshire, Louisiana, and Washington, an “as is” warranty requires full disclosure, otherwise it is not valid.
2. Implied Warranties
For the states which don’t allow implied “as is” warranties, stricter laws are assumed to be the default condition when someone buys from a dealer. Such laws are called “implied warranties” because by default, if the car fails a minimum level of quality, consumer protection laws kick in with which the vendor must comply. Again, if there is a contract in writing prior to purchase the “implied warranty” can be cancelled out at the signature of both parties. State laws hold dealers responsible if cars they sell don’t meet reasonable quality standards.
3. Warranty of Merchantability
This third type of warranty is the most common, and in this the car seller guarantees that the car they sell will do as it was advertised. For example, if the dealer can guarantee in the buyers guide that a car goes then it needs to go otherwise the warranty kicks in and the dealer has to fix it. Not all things are covered, for example a nail that drains the air out of a tire is certainly not a defect didn’t come with the sale. These things are not covered by warranty. If it comes down to it (and hope it doesn’t), a judge may have to rule on what is or is not covered by the warranty of merchantibility.
4. Warranty of Fitness for a Particular Purpose
This is a complicated one and applies to vehicles which were promised to perform for a specific purpose that’s not common to most cars. An RV hauler is one such example. If the dealer or seller claims that a particular car is able to handle a task like hauling a Winnebago, and it doesn’t, then the dealer is liable for repairs or refund. Such warranties may not be in the written contract, but fortunately may be part of the “implied warranties” which are assumed automatically on point of purchase. For competitive reasons, some dealers offer full warranties on the vehicle’s components and subsystems.
Sometimes a written warranty will state that another party can be responsible for fulfilling the dealer’s promises. In these cases, you’re responsible for checking out the third party, like satisfaction of customers (check BBB or your attorney general) or the state of their insurance.
5. Unexpired Manufacturer’s Warranties
There’s a small chance the original manufacturer is still covering the warranty on a car if its less than 3 years old (5 or 10 years for other cars like Hyundais). You’re going to have to get the warranty documents, like dated receipts that show the period of warranty coverage, the mileage or other documents which are needed to make good on the warranty benefits.
6. Service Contracts
This is almost like a warranty, but must be purchased separately because it’s not a clause like a warranty that accompanies a sale. If you decide to take up on this offer, make sure it’s not duplicating the warranty; if it is, you should clearly negotiate down the price as it’s extra. Check whether the service will cover all broken down items and whether you really need this extra cost for repairs you may not need for a long time.