Understanding Used Car Warranties

Buying a used vehicle comes with risks. You hope for reliability, but problems can appear after you drive off the lot. That’s where warranties come in. Some offer solid protection, while others leave you paying for costly repairs. Knowing the difference can save you from unexpected expenses.

Some vehicles come with manufacturer coverage, while others have dealer-backed protection or limited guarantees. The fine print matters. Understanding what’s included, what’s not, and how to use a warranty can make all the difference.

In this guide, you’ll learn how different warranties work, what to look for before signing, and what to do if a dealer refuses to honor a promise.

Used Car Dealer Warranty: What You Need to Know  

Buying a used vehicle comes with questions. What happens if something breaks? Who pays for repairs? Here’s what you need to know.

Types of Warranties

Not every used vehicle comes with protection. Some have strong coverage. Others are sold “as is,” meaning repairs are your responsibility the moment you leave the lot.

• Manufacturer’s Warranty:  If the vehicle is still within its original warranty period, you may have bumper-to-bumper or powertrain protection left. Some manufacturers let you transfer it to a new owner.
• Certified Pre-Owned (CPO) Warranty: Backed by the manufacturer, these warranties are included with select pre-owned vehicles that pass inspection. They often cover repairs beyond the original warranty.
• Dealer-Provided Warranty: Some dealerships offer their own coverage, but terms vary. Some cover parts and labor, while others have strict exclusions. Read the fine print.
• Extended Car Warranty: Third-party companies sell service contracts that act as extra coverage, but these can have high deductibles, repair limits, and calm restrictions.

Understanding the Buyer’s Guide

Under federal law, dealerships must provide a Buyer’s Guide for every used vehicle they sell. It tells you if the vehicle is sold “as is” or with a written warranty. If there’s coverage, the guide must list:

• What does the warranty cover (engine, transmission, electrical, etc.)?
• Length of the warranty (time or mileage limits)
• Who pays for repair costs (full coverage or shared expenses)
• If there’s a deductible

If a dealer promises coverage, it must be in writing. Verbal promises don’t count.

State-Specific Protections

Some states have stronger protections than others. In California, the implied warranty of merchantability means a dealer can’t sell a vehicle that isn’t fit to driveーeven if it’s sold “as is.” Some states also require a limited warranty on vehicles below a certain mileage or age.

Vehicle Warranties and Lemon Laws

A warranty gives you repair coverage but doesn’t guarantee a vehicle is free from defects. Lemon laws may apply if a dealer keeps trying to fix the same issue without success. However, lemon laws for used vehicles are different from new ones. Coverage depends on the state, warranty terms, and number of repair attempts.

The Dealership Sold Me a Bad Used Car – What Can I Do?

A vehicle should run as promised. If it has persistent problems, you have options. 

Step 1: Check the Warranty and Buyer’s Guide

Before taking action, review the warranty coverage or Buyer’s Guide provided at the time of the sale.

• The dealer is responsible for covered repairs if the vehicle comes with a written factory warranty. 
• If it was sold “as is,” the dealer may not have legal obligations unless they misrepresented the condition.

Some extended warranties or service contracts may cover vehicle repairs, but check for deductibles, exclusions, or claim limits.

Step 2: Contact the Dealership

Many issues can be resolved directly with the salesperson or manager before taking legal steps. Provide documentation of the problem, including:

• Service records from a repair shop confirming defects
• Vehicle history reports from a repair shop confirming defects
• Odometer readings to verify mileage accuracy

Step 3: File a Complaint with the DMV or Attorney General

If the dealer refuses to help, escalate the issue to state authorities:

• DMV Complaint: The local Department of Motor Vehicles handles licensing and registration violations.
• State Attorney General: Consumer protection laws vary, but some states allow legal action for misrepresentation or failure to disclose major defects.
• FTC & Federal Law: The Federal Trade Commission enforces rules against unfair or deceptive practices.

Step 4: Explore Refund or Replacement Options

Lemon laws protect new vehicles more than used ones, but some states have protections for certified pre-owned models or those sold with warranties. You may qualify for a refund or replacement if the dealership can’t fix a defect after multiple repair attempts.

Step 5: Consider Legal Action

If the problem isn’t resolved, an auto fraud attorney can help determine if legal action is an option. If a dealer knowingly sold a defective vehicle, they could be held accountable.

When to Contact a Lemon Law Attorney

A bad vehicle shouldn’t leave you stranded. If repairs seem endless or problems persist, lemon laws may protect you. But not every defective purchase qualifies.

Does Your Vehicle Qualify Under Lemon Laws?

A vehicle may be considered a lemon if:

• It has a major defect affecting safety, functionality, or value
• The dealership attempted multiple repairs, but the problem continues
• The vehicle has been out of service for an extended period due to repairs

Each state has different rules, and certified pre-owned vehicles may have better protections than those sold.

If the case is strong, an attorney can negotiate for:

• A refund of the purchase price or down payment
• A replacement vehicle under factory terms
• Compensation for the cost of repairs and legal fees

Why Legal Help Matters

Car dealerships and manufacturers don’t always make the process easy. A lemon law attorney levels the playing field.

• They know state and federal laws and how to apply them
• They handle negotiations, so you don’t have to battle with salespeople or service managers
• They push for a faster resolution, helping you avoid costly repairs or endless back-and-forth

Contact Our Team of Used Car Attorneys Today

You may have legal options if a dealership fails to honor a warranty, refuses to address a serious defect, or misleads you about a vehicle’s condition.

Time matters. Lemon laws and consumer protections have deadlines. If you wait too long, you might lose your chance to take action. Ensure you have the Vehicle Identification Number (VIN), copies of repair orders, and other necessary information.

Contact the Paul Mankin team today for a free case review. Our firm works on a contingency basis, so you won’t be responsible for providing lawyer fees to fight your case. You don’t pay unless we win or settle.