Man Buys A Used Car With A Warranty. Then He Realizes Just How Difficult It Can Be To Use It: 'When It Comes To Filing A Claim...'

If you buy a car, new or used, chances are high that you’ll be offered a warranty with the vehicle.

These warranties can be expensive. As noted by Cars.com, the cost of an extended warranty can reach thousands of dollars per year, with an average of $139/month.

Still, many consider the prospect of paying an additional $100 or $200 a month and think, “Do I really need that?”

Even though these warranties can provide peace of mind, there’s always a question of whether you will ever actually get to take advantage of them—or, at the time when you need it, if the warranty will actually cover what you need it to. There’s also the question of whether it makes financial sense to get a warranty, or if you’d save money simply by paying out of pocket for maintenance and repairs.

Now, a mechanic is issuing a warning about used car warranties after a recent incident with a customer.

What Happened To The Used Car Buyer?

In his video, TikTok user Chris Carlisle (@chriscarlisle07) says that used car warranties can occasionally cause issues.

“Used car warranties: They work, but when it comes to filing a claim, it's a whole different story,” he starts.

According to Carlisle, a customer bought a used car from his dealership. He did so with a warranty. Then the transmission went out.

“Perfect,” Carlisle says. “This is where the warranty is supposed to shine.”

Before beginning the work, Carlisle submitted a claim to the warranty company. The company approved the claim. However, they did not approve enough funds for a new or remanufactured transmission, only a used transmission.

“We go to bat with the warranty company, try to get them to step up more so we can at least get the customer remanufactured transmission. But it wasn't happening,” Carlisle says.

Carlisle told the customer he could either accept a used transmission or get a remanufactured transmission and pay the difference out of pocket. The customer opted for the used transmission, saying he was “tight on funds.” Carlisle obliged and installed a used transmission.

Problems Soon Begin

Once the customer got their car back, they decided to take it on a road trip.

“My guy gets the vehicle back probably a couple weeks, and then eventually takes it on a trip to Alabama. And we are located in Florida. Transmission goes out,” the TikToker recalls.

While the owner took the car to a dealership in the area, the warranty company purportedly denied the claim, saying that the owner needed to bring the car back to the dealership where the transmission was replaced.

Hearing this, Carlisle booked transportation to get the vehicle back to his shop. While he says that the transmission would be covered by the warranty, the owner was liable for the diagnostic fee and transportation costs. Still, Carlisle says that the warranty covering his transmission made the deal worth it.

“[Warranties] can cover your butt, but they're also a pain in the butt,” he summarizes.

Is This How Warranties Work?

While Carlisle and his customer may have been annoyed that the warranty did not cover a new or remanufactured transmission, the transmission he got was likely the only one explicitly covered by the warranty.

Many warranties only cover parts that are of “like kind and quality.” This means that one cannot get a car with an old part, have it break, then get it replaced with a brand new, top-of-the-line alternative under the warranty. Some warranties may even say outright that mechanics are required to use remanufactured or used parts for repairs.

Even though this may be frustrating for the customer, they are likely still saving money in the long run. One shop quotes the price of a used or salvage transmission at between $800 and $1,500. Labor on top of that can be another $500 to $1,200. Given that used car warranties can cost roughly $100 per month, they may still have saved money by buying the warranty.

Drivers Have Questions

In the comments section, some users questioned the warranty company’s decision. According to them, it would have been cheaper in the long run to simply replace the blown transmission with a new or remanufactured one.

“By the time you add up the labor and cost of two used transmissions, they could have paid to rebuild the original one,” wrote a user. Carlisle responded, “You ain’t gotta tell me.”

He added, “Sadly was the only option since the customer didn’t want to pay the difference.”

Motor1 contacted Carlisle via TikTok and Instagram direct message. We’ll be sure to update this article if he responds.