When shopping for a used car, you will need to look for the Buyer’s Guide sticker. This sticker is required by the FTC to be placed on all used cars sold in car dealerships, which states what type of warranty is has. This sticker will state whether it has a service contract and indicate whether it sold with a warranty.

If the used car you plan on buying is still covered by the original manufacturer’s warranty, you may have to pay an extra fee to obtain coverage, making it a service contract. However, if the dealer chooses to not charge you that extra fee and to absorb the cost of the manufacturer’s fee, then this coverage is still considered a warranty.

If the car is sold “as-is,” then it will contain no form of warranty, and you will have to pay for all repairs yourself. If you choose to, you will be able to buy a dealer service contract within ninety days of purchasing your car. Some states have used car “lemon laws,” which will give you, as a buyer, certain rights. These laws state that you can receive a refund or replacement car if the one you bought is seriously defective.

If you choose to buy a used car, make sure you are protected from major repair expenses. If the car you are buying is no longer covered by the original manufacturer’s warranty, you should purchase a service contract from the dealer, if it is offered. Another option you have is to buy a service warranty directly from a warranty company. Used cars will generally require maintenance and many repairs. Instead of paying for all of them, it would better to pay for a service contract. Before you buy a used car, you should always do research and have am independent mechanic inspect the car first. You do not want to spend thousands of dollars and later find out you will have to spend more than the car is worth to fix it.