Car Warranty Explained

A car warranty provides an extended level of insurance on mechanical and electrical parts of your car to ensure you are not left out of pocket should something go wrong with your motor. Car warranties are designed to give you peace of mind and ensure that you are not left out of pocket should your vehicle break down unexpectedly.

Creditplus Definition of warranty

A car warranty (or extended warranty) is an insurance policy that covers repair costs and/or replacement parts and labour for your car in the event of a mechanical or electrical fault.  

All new cars come with a manufacturer warranty as standard, but once this has expired it will be up to you to pay the full cost of any repairs that need carrying out should your car develop a fault. This is why purchasing an extended warranty can be a good idea- it provides you peace of mind when it comes to potentially expensive car repairs.

When you are looking for a car warranty, it is important that you consider all factors. Here are a few things that you should check:

  • Does the car warranty include wear and tear?
  • Can your car be repaired at a franchised dealer?
  • Does the warranty have either a limit to the labour or parts cost?
  • Are expensive specific part covered (turbo, gearbox, ABS, 4 wheel drive system, etc)?

Creditplus offers a 6 month warranty on all used vehicles that we directly supply at no additional cost (this does not include vehicles that our customers purchase from a dealer of their choice). This is provided by RAC as Creditplus are a RAC Approved Dealer. When the warranty is due to expire there is the option to extend it to a 12, 24 or 36 month warranty which will come at an additional premium, although warranties will generally only be available on cars until a certain age (usually between 8 – 10 years old).

Wikipedia definition of warranty

"An extended auto warranty is a service contract between the owner of a vehicle and an auto warranty provider, the latter which may be either the original manufacturer or a third-party. All new cars come with a warranty that cover repairs for a certain period of time and a certain number of miles, such as 3 years and 36,000 miles. At the time of sale, auto dealers may sell car buyers an extended warranty offered by the manufacturer. When that time period runs out, consumers have the option to purchase an extended auto warranty from a third-party, which is not an extension of the terms and coverage provided in the original car manufacturer’s warranty, rather it is a new contract provided a third-party provider."

Source: Auto Warranty at

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