If you want peace of mind in case your vehicle suddenly needs expensive repairs, then a used car warranty may be for you. However, they’ll frequently see you shelling out more than you would for irregular repair jobs, and the terms and conditions of the policy can include significant exclusions. Read on as we explore is it worth buying a warranty on a used car.

What is a car warranty?

A car warranty is a kind of insurance that covers the cost of any parts or labour that may be required to fix particular mechanical or electrical faults with your car. Typically, when you purchase a new car, it’ll have a manufacturer’s warranty that lasts anywhere from three to seven years, depending on the car model.

Exactly what your warranty will cover depends on the provider, and there may be limits such as mileage that could invalidate your cover if unmet. Cars older than ten years old are typically more difficult to claim a warranty on.

Is it worth purchasing an extended car warranty on a used car?

If you’ve already got a used vehicle in mind, it’s worth checking the purchase documents. If it’s a relatively new model, the vehicle may still be within its manufacturer’s warranty – this will generally be around three years but can be anywhere up to seven (which is standard when it comes to all Kia models, making them excellent value for money). Otherwise, your dealership may offer you a used car warranty. These will usually promise financial peace of mind should your vehicle experience any mechanical or electrical failure.

However, research by Which found that many used car warranties will tend to have you spending more for the warranty than you would expect to pay on an average repair bill.

Many used car warranties also have significant exclusions for what you can expect to be covered by the warranty, so you’re essentially paying a significant premium for minimal cover.

You should take the time to carefully go through any terms and conditions of the warranty you agree to, and determine the exclusions written into the agreement. Similarly, if a deal seems too good to be true in terms of low cost, there’s probably a reason, and you may end up shelling out for even the most basic repairs as a result of innumerate policy exclusions.

Used car warranty: is it worth it?

The answer to this question really depends on whether or not you can afford the cost of any repairs as and when they arise.

It may be more strategic to budget a certain amount of money per month towards any repair fees, rather than paying out for a pricey warranty which may come with a high list of exclusions.

At the least, you should be shopping around and comparing as many quotes as possible for your warranty – don’t go jumping into the first deal offered – and ensure that you always read the fine print of any policy.

Financing your used car

If you’re buying a used car, warranties are just one of the considerations you’ll need to make. A much bigger one is how you plan to finance the purchase. My Car Credit can make it easy, providing a car loan quote from our extensive network of trusted lenders. Any questions? Contact us on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!