When you walk into a car dealership and drive away with a new set of wheels, you’re also provided with an automobile warranty from the manufacturer.
Depending on the price and type of the car, the factory warranty is usually limited and valid for a defined period or mileage covering repairs like powertrain, emissions, corrosion, and maintenance, among other things.
First off, an extended warranty is a vehicle warranty that a car owner purchases to cover major car breakdowns when the manufacturer’s warranty expires.
With one in place, you may not feel a huge pinch when it comes to car repair costs, labor, and parts.
More of an insurance policy than a warranty, an extended vehicle warranty is usually offered by third-party administrators as well as some automakers. And since not all car warranties are the same, it’s crucial to ask some questions before making the purchase.
Important Questions to Ask Before Buying Extended Car Warranty
1. What Components of My Car Aren’t Covered by the Warranty?
Whether you get an extended warranty from an automaker or a third-party provider (after-market warranty), it’s crucial to know what is covered and what is not covered.
New car warranties may vary from one manufacturer to the other, and exclusions are to be expected.
On the same note, some types of after-market car warranties often cover specific types of repairs, leaving out others. A bumper-to-bumper warranty, for instance, may cover a wide range of mechanical issues caused by poor workmanship or material defects.
You may consider this warranty if you are always on the road because it takes care of major breakdowns that may occur from the front to the back, including steering components, electrical parts, air conditioning, safety equipment, and powertrain.
2. Can I Transfer The Warranty?
Some warranties are indeed transferable. This means that in case you decide to sell your car, the new owner will not have to purchase a new warranty – which is an added advantage to both of you.
However, you can expect to spend anywhere between USD 40 and USD 50 in transfer fees give or take.
3. What’s The Length of Coverage?
When purchasing a new car, the factory warranty may be valid for anywhere between three and seven years. Some manufacturers base it on the car’s mileage, which could be anything from 35K miles to 100K miles.
4. What’s The Payment Structure?
Well, in most cases, a car warranty is part of the buying price when buying a new car. Some dealerships partner with auto insurance providers to offer this if you are buying a used car.
This is to say that when purchasing a new car’s warranty, you could expect to pay a lump sum, or a down payment and several installments over a specified duration.
5. What Other Benefits Should I Expect From The Contract?
Just like automotive manufacturers, many third-party providers of extended car warranties offer several additional benefits to their clients in their time of need. For instance, you may enjoy perks such as free car rental while waiting for your vehicle to be fixed.
Some warranties even offer reimbursements for interrupted trips due to defects that are covered. If your car breaks down when taking a solo road trip, some car warranty providers may send roadside assistance your way.
6. Which Factors Could Possibly Void My Warranty?
Finally, various factors can void your car warranty, whether it’s from the manufacturer or a third-party provider.
These will usually be outlined in the contract your sign, so be extremely thorough before appending your signature therein.
At the very least, being in the know can help you keep your warranty active for as long as it’s supposed to last.
Understanding vehicle warranty is among the best things you can do when getting a new car.
It helps avoid financial stresses and inconveniences that could arise in case your car breaks down. While doing so, asking the questions above can help you make an informed decision.