One reason why many buyers prefer to buy new rather than take advantage of the huge savings to be made in buying a used car, is that the new car is (usually) more reliable. If anything goes wrong it is repaired at no extra cost.
Such peace of mind, however, is also available with a used car if it is backed up by a 'good' motor warranty. There are many different types of warranty (including manufacturer warranty, dealer warranty and after market warranty), some of which provide very little cover; others come with a list of conditions and exclusions in the small-print that could render them worthless when you need to make a claim.
A motor warranty is basically an insurance policy that covers you for any likely repair costs if your car breaks down. The warranty should cover all the major working components of a used car from engine to suspension, but usually excludes items subject to usual wear and tear such as tyres, filters, brakes and exhausts.
Unlike motor insurance, a warranty is not a legal requirement for your car and the downside is that it will initially appear to increase your cost of ownership, particularly if you are aiming for budget-priced motoring with an inexpensive used car. However, the right warranty need not cost the earth and in addition to buying that elusive 'peace of mind', it will also prove to be money well spent should your car let you down.
Print off our checklist on the next page to ensure that your warranty provides the level of cover you are expecting.