What to Know About Car Warranty Before You Buy

Last updated Mar. 04, 2025

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John James

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What is car warranty?

Whether you’re buying your first car or trading up to something newer, understanding how warranties work — and what rights you have under UK law — is essential. Here’s everything you need to know, straight from a dealer who’s seen it all.

What Is a Car Warranty?

A car warranty is a promise — usually from the manufacturer or dealer — that certain parts of the vehicle will be repaired or replaced if they go wrong within a set period. It's not insurance, and it’s not a guarantee that the whole car is covered top to bottom.

There are typically three types:

Manufacturer Warranty – Most new cars come with 3 to 7 years of cover.

Approved Used Warranty – Main dealers often offer 12-month cover on used stock.

Aftermarket/Dealer Warranty – Offered by independent dealers, usually 3 to 12 months.

What do warranties cover?

Most warranties cover major mechanical and electrical components, like: Engine, Gearbox, Drivetrain, ECU and some electronics

However, they usually exclude wear and tear items like: Brake pads, Tyres, Clutches (unless premature failure is proven), Suspension parts (sometimes considered wear), Always check the fine print — some cheaper warranties are “return to base,” meaning the car must be brought back to the supplying dealer or their network.

The Consumer Rights Act 2015 (CRA): Your Legal Back-Up

Whether or not a warranty exists, you still have legal protection when buying from a dealer.

Under the CRA:

You have the right to reject the car within 30 days if it’s not of satisfactory quality, fit for purpose, or as described.
After 30 days and up to 6 months, the dealer must prove the fault was not present at the time of sale if they refuse a repair or refund.
If a fault occurs, you’re entitled to a free repair or replacement, and if it can’t be fixed, you can request a price reduction or refund.

💡 Important: The CRA only applies to dealerships or traders, not private sellers.

Used Cars and Warranty: What You Should Know

There’s a common belief that if you buy a used car, you’re on your own — not true. While the warranty may be shorter, your statutory rights under the CRA still apply, regardless of the car’s age.

That said, older, higher mileage cars may come with: A shorter or more limited warranty, Clauses that exclude pre-existing faults, Or may be sold "sold as seen" – which is fine, but doesn't override CRA protections.

We recommend always getting warranty terms in writing, even on cheap part-exchange vehicles, just so both parties are clear.

Case Study: Warranty vs CRA in Action

A customer bought a 5-year-old diesel hatchback with a 6-month dealer warranty. Two weeks in, the gearbox developed a fault. The warranty provider initially refused to pay out due to a technicality. Because the fault occurred within the first 30 days, the customer was able to reject the car under the CRA, and we refunded the purchase in full — no fight, no stress. This shows why your legal rights often offer more protection than the warranty itself.

Dealer Tips: What to Ask Before Buying

What's covered and what's not?
Is it a return-to-base policy?
Can I use any garage or just yours?
What’s the claims process?
Will the warranty be in my name or just the supplying dealer?
And if you’re not sure — ask. At We Buy Cars Hexham, we’re upfront about what our warranties cover, and we’ll tell you what’s not included before you buy. No grey areas.

A warranty is a valuable safety net — but it’s not the be-all and end-all. Know your legal rights, read the fine print, and make sure the dealer is willing to work with you if something goes wrong. If you’re unsure about your cover or need advice on a claim, feel free to get in touch with us at We Buy Cars Hexham. We're happy to help guide you — whether you bought the car from us or not.