Investing in a used car is often not much of an issue with the average person who cannot afford anything but the used car. Not many appreciate just how risky the used car purchase can be. The used car is one that has been through the hands of one or more prior owners, and you have no way of identifying just how badly abused it was. Many people would replace the really worn parts of the car or apply shinny paint jobs to the body to make it look good, but truth is you will not know the real condition of your used car until you have driven it for a week or more yourself. I know because I speak from experience. Thankfully though my used car purchase included a used car warranty in the purchase agreement, so I was not completely out of sorts when I had to carry out maintenance repairs on my car within the first month of its purchase (on top of the loan that I was already paying for this car).

My used car warranty was a limited warranty (it still covered my maintenance though). Used car warranties can also provide full coverage for your used car, or they may be unwritten warranties which are implicitly implied in some states.