What Is a Warranty Deed (And Does My Used Car Have One?)

If you have a used car, you may be wondering whether it has a warranty deed. And if so, what does it cover.

This is an important query to make when buying a used car. Brand new vehicles will almost always come with a guaranteed manufacturer warranty, meaning it’s a safer bet.

So – what is a warranty deed?

What is a Warranty Deed?

Simply speaking, a warranty deed with a used car is an assurance made by the seller that specifies your rights as the new owner should something go wrong. It is an extra layer of insurance cover against particular faults.

There are a few different types of warranty which may apply to the used car you are buying, and it is important to know which applies to you.

Unfortunately, when it comes to used car warranty deeds, things can get a little grey. You have rights as the buyer of a used car – but this is not the same as having a warranty deed.

It’s best to know your rights by checking the Buyers Guide in your state by referring to the state attorney general’s office. A car seller will be required by the Federal Trade Commission (FTC) to display this in the window of a second-hand car that is up for sale.

By checking your state Buyers Guide you will be able to research whether a vehicle comes with a warranty or not. If it doesn’t, the car – and any of its faults – are your responsibility once you drive it out of the dealership, lot, or wherever you’re buying it from.

If it does not come with a used car warranty deed, the state Buyers Guide should advise you on the percentage of repair costs the dealer is required to pay as part of the warranty. This may be zero percent.

A Word of Warning

There’s a way to trip up here.

Check your sales contract. While the state Buyers Guide from a dealership could state that the used vehicle is covered by a warranty deed, the contract from the seller could stipulate otherwise.

Be aware that what the Buyers Guide says is what goes. The seller must honor the stipulations of the Guide.

However, there’s a loophole.

If the seller is a private party, rather than a licensed used car salesperson (who might use Used Car Dealer Software) the rules of the Buyers Guide are not necessary. Nor is a used car warranty deed.

This is where you will need to negotiate in your seller/buyer agreement what is and isn’t covered, post-sale – if anything at all.

Buying a Used Car?

Having asked ‘What is a warranty deed?’ the next question is ‘does my used car have one?’

The way to find out is simple – ask. And whether your used car does or doesn’t, this is when you must negotiate the terms after you have bought the vehicle.

Be wary of the seller’s status and whether or not the Buyers Guide applies. And if it does, know your rights as the purchaser.

And don’t hesitate to get in touch if you’d like to find out about ways to fix up your news car.