How used car warranties and service contracts work: what coverage includes, common warranty types, questions to ask before buying a service contract, and how to keep your coverage valid.
What a Warranty Covers
A warranty is a promise to repair or replace specific parts if they fail during a set period as part of a covered claim. Every warranty has limits: which parts are covered, how long coverage lasts in time and miles, and what you may have to pay when you make a claim.
Two vehicles with a "warranty" can have very different protection, so read the written terms rather than relying on the name alone.
- Which parts and systems are covered?Look for a written list, not a general description.
- How long does coverage last?Most terms end at a time or mileage limit, whichever comes first.
- Is there a deductible?Ask whether it applies per visit or per repair.
- Can the coverage be transferred?This matters if you sell the vehicle during the term.
Common Types of Used Vehicle Coverage
Some newer used vehicles still have part of the manufacturer's original warranty remaining. You can ask the dealer or a franchised dealership for that brand to confirm what coverage is left for a specific vehicle identification number (VIN).
A powertrain warranty focuses on the parts that make the vehicle move, such as the engine and transmission. It generally does not cover items like brakes, electronics, or air conditioning.
A dealer warranty is offered by the selling dealership, and its terms are set by that dealer.
Warranties vs. Service Contracts
A service contract, sometimes called an extended warranty, is a separate agreement you can choose to buy for repair coverage beyond any included warranty. Coverage, cost, and claim rules vary widely between providers.
Before you buy one, compare what it covers with any coverage you already have, and find out who handles claims and where repairs can be done.
- Compare the coverage list with your included warrantyAvoid paying twice for the same protection.
- Ask who pays the repair shopSome contracts pay the shop directly; others reimburse you.
- Check whether you can cancel and how refunds workGet the answer in writing.
Keep Your Coverage in Good Standing
Many warranties and service contracts require routine maintenance. Follow the manufacturer's maintenance schedule and keep your receipts, because you may be asked for them when you make a claim.
If a warning light appears or something feels wrong, contact the warranty provider before repairs begin. Many plans require approval before work starts.
OpenBook Auto's Limited Powertrain Warranty
Every pre-owned vehicle from OpenBook Auto comes with a complimentary 90-day limited powertrain warranty for the original purchaser. Coverage lasts 90 days or 3,000 miles from the odometer reading at purchase, whichever comes first.
Visit our warranty page for the full list of covered parts, and ask our team any questions before you sign.