16 April 2025
Car Warranties: A bumper to bumper overview
Whether you buy a brand-new car fresh out of the factory or a second hand one from your local dealership, it can sometimes feel like a step into the unknown. Luckily there are such things as warranties that can often be a part of your new purchase that can provide you with some peace of mind.
- What is a warranty?
- What different types of warranty are there?
- How are they different to car insurance?
What is a car warranty?
A car warranty is a contractual agreement between both the buyer and seller. Depending on the warranty itself, certain components of the car are covered when they become broken or are no longer fit for use. This type of warranty usually covers parts such as wheel bearings or a whole gearbox, and could save you thousands of pounds later on.
What different types of warranty are there?
There are several different types of car warranty available, depending on where and how you buy your car:
- Manufacturer warranty
- Dealership warranty
- Statutory warranty (Consumer Rights Act 2015)
- Approved used warranty
- Third party warranty/Insurance warranty
Dealership warranty
When you buy a second-hand car, often as part of the deal, the seller will package a warranty which can range from anywhere from two months to a year. Most of the time this will be at an additional cost but can be a part of the negotiated deal for the car.
Make sure to read through what the warranty covers as it will be less comprehensive than a manufacturers warranty. It will also be more likely to leave out parts such as electronics and wiring, but will still cover the essential non wear and tear components.
Manufacturer warranty
These warranties apply once you’ve bought your fresh new car from the manufacturer. Typically these are three years long, or up to 60,000 miles - but it depends on the manufacturer. For an additional cost, you can choose to add an extended warranty to this, period for extra peace of mind.
These warranties tend to cover all the car’s parts except the ones that are “wear and tear” components such as brake pads, windscreen wipers and tyres. These are the most comprehensive of most car warranties.
Approved used warranty
This is a warranty designed by car manufacturers to sell on their own used cars. These are more like the dealership warranties we covered earlier. Normally offered as a minimum of 12 to 24 months, with the option to extend - some offer unlimited mileage too. Parts that have been replaced in the service will most likely be OEM parts.
Statutory Warranty – Consumer Rights Act 2015
Once you’ve bought your car from a second-hand dealer, your car is subject to something called statutory warranty under the Consumer Rights Act 2015. If your car develops any faults that the dealership didn’t tell you about during the first 30 days of ownership, then you have right to return the car to the dealer for a full refund.
If a fault happens after 30 days (and during the initial 6-month period), the dealership has one opportunity to fix the car, if that doesn’t resolve the fault, then the buyer is entitled to a full refund.
Are warranties different to insurance policies?
Both are designed to protect you from uncertainty, but they are designed to cover completely different parts of the car.
A car insurance policy is claimed in the event of an accident, fire or theft. They will either pay to have your vehicle repaired, or pay out in the event of a total loss. For more on what is covered in your car insurance, have a look at our article on what comprehensive car insurance covers.
A warranty is claimed in the event of an unexpected component failure in the wheel bearing failure or gearbox.
So, overall, warranties can really help to make sure you have a good understanding of the different types of warranties, as it can affect the parts that you can claim on. Read the small print to make sure you know exactly what you’re covered for.
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