Who Offers The Best Warranty On A Used Car?

As an auto auctioneer I used to tell a winning bidder, “Congratulations! You now own that car! Including whatever just fell off!”

Everyone would laugh except those who heard me say that joke for the 200th time. But when you’re buying a used car that’s really the truth of it. Every year over 40 million used vehicles are bought and sold in the United States — from recent models with only a few thousand miles on them, to rolling deathtraps that are worth more dead than alive.

The vast majority of used cars and trucks are sold “as-is” — you buy it like you see it. But retail used-car dealerships now typically offer some kind of warranty, ranging from the basic 30-day guarantee with many exceptions to those that mimic new car deals running for several years and thousands of miles.

Here’s how they compare to one another.

New vehicle dealerships: A traditional dealership that sells a specific brand of car (Toyota, Honda, Chevrolet) will offer a "Certified Pre-Owned (CPO)” warranty exclusively for that brand alone.

A Ford dealership, for example, can offer Ford’s 7-year/100,000 mile powertrain warranty on a certified pre-owned Ford car or truck along with a comprehensive 1-year/12,000 mile warranty.

The powertrain warranty covers the engine and transmission while the comprehensive warranty applies to a laundry list of items, from radios and interior components to wear items such as brake pads and halogen bulbs.

The length of the powertrain warranty is based on the first day that used car was sold new. For example, if the original owner bought a Ford brand new Ford in August 2013, your powertrain warranty with Ford will last until August 2020 or 100,000 miles – whichever comes first.

The comprehensive warranty begins on the day you bought the vehicle. So if you do buy a certified pre-owned Ford, you have either 1 year or 12,000 miles on the comprehensive coverage from the date of purchase. Every manufacturer offers their own unique version of a certified pre-owned warranty and you can find those details by clicking here.

So Why Buy A CPO Warranty? A certified pre-owned warranty usually results in a higher selling price — sometimes thousands more than a similar used vehicle if you’re looking at the high end of the market — which is why manufacturers have embraced them.

But there’s one distinct advantage related to these CPO warranties besides the extended coverage. New-car dealers always have the first opportunity to buy vehicles directly from the manufacturer, and can cherry pick those specific off-lease vehicles that are the most popular or have the most thorough maintenance histories.