Under California law, licensed car dealerships are not legally required to provide warranties with the used cars they sell. However, depending on the type of coverage you are looking for, they may offer a variety of guarantees. If you believe that the repair shop is responsible for a delay in repairs or that the repairs have been done incorrectly, you can contact the California Office of Automotive Repair (BAR).When you pay a large sum of money for a car, you can usually drive away with it right away. Only a car dealer with a valid DMV license can legally provide you with a Vehicle Service Contract (VSC) issued by a Vehicle Service Contract Provider (VSCP).
If you are considering buying a used car, it is recommended to have it inspected at an independent repair center rather than the dealership (unless the dealership is an authorized franchisee of the manufacturer and offers a one-year warranty for free). Most VSCs and Mechanical Breakdown Insurance (MBI) policies include rental car benefits to help cover the cost of renting a car while your own car is being repaired. Due to many VSC companies going bankrupt without paying claims between the 1970s and 1990s, California law requires that all VSCs be backed up by an insurance company authorized by the California Department of Insurance (CDI). As a result, many car owners who purchased repair contracts from these companies were left with unpaid repair claims. On the other hand, new cars are usually covered by a free new car warranty provided by the manufacturer. When looking for a used car VSC, make sure that it does not exclude wear and tear coverage and that it covers seals and gaskets, computers, and sensors.
It is important to read through all of the terms and conditions before signing any contract.