Understanding Car Warranties
What is a "car warranty"?
When understanding car warranties, a warranty on a vehicle is an expressed promise from the manufacturer that they will cover any and all maintenance that the vehicle needs within a certain time of owning the vehicle. So, generally, car warranties are anywhere between two to five years and will cover a various amount of the vehicle features. A powertrain car warranty covers the engine and the transmission; the things that really help you go up and down the road. A bumper-to-bumper car warranty also warrants the stereo system, the lighting system, and the brakes potentially, all things that are included in the vehicle that aren't essential to just the powertrain.
Does every new car come with a warranty?
With regards to car warranties, it is required that any vehicle sold on the road as a new car has some degree of warranty. The extent or depth that the warranty will cover is really a decision of the manufacturer, whether it's two years on a limited degree of the vehicle, or a five year potentially bumper-to-bumper car warranty cover.
Do used cars come with warranties?
When understanding car warranties, used cars generally do not come with warranties, especially if you're buying it from a private party. If you're buying it from a dealer, they may provide a 3 day, 3, mile warranty on power train issues. If the radio stops working, you may not be covered, but if the engine stops working, you will have some recourse. In addition, you can often buy extended car warranties from the dealer which will cover much more of the vehicle over a longer course of time.
Do I need a car warranty?
With regards to car warranties, whether or not you need a car warranty is a question I'm asked very often. My best answer is "the value of your peace of mind is at play". Buying an extended warranty is often an expensive process and a big source of profit for the dealer. So, you need to balance your peace of mind against how much you're willing to pay for the warranty. If peace of mind is important to you, then the car warranty is priceless and so it's really something you need to consider before you go and purchase the vehicle.
What should I look for when comparing a new car warranty?
When comparing new car warranties, you should be looking at how much coverage those different programs are going to provide. Is it a bumper-to-bumper warranty? Is the warranty going to take care of everything from windshield wipers through the stereo system through the engine, or is it just a power-train warranty that's only going to address the main key components of the vehicle? You also have to look at the term of the car warranty: is it a two-year, three-year or five-year warranty, and how many miles are allowed? Quite often a warranty will be five years or 50,000 miles, or three years or 36,000 miles, depending on how much you're going to be driving the car.
What is a "service contract"?
A service contract is a prepaid maintenance schedule, in that you are basically paying up front for all of the maintenance that the vehicle's going to need over the time you're owning it. Usually it's provided to you in a little booklet of coupons, so when you come to get an oil change, or a checkup after so many miles, you just pay with that prepaid coupon.
What is the difference between an "extended warranty" and a "service contract"?
An extended warranty is a document which provides peace of mind and coverage if there is something unforseen that happens to the vehicle. A service contract is something that addresses regular maintenance of the vehicle. One is providing peace of mind and one is facilitating easier use of the car.
What does a "limited car warranty" cover?
The term "limited" in "limited car warranty" refers to just exactly what it's going to cover. A very basic warranty may not include breaks, because that's considered a wear-and-tear item, therefore it's going to be requiring service, regardless of anything going wrong from the actual manufacture of the design. So, you'll want to look at what the defined coverage of that is and identify if the warranty you're looking at is too limited to give you peace of mind. Typically, in a warranty wear-and-tear items are not covered, for obvious reasons. Breaks, clutch, tires, windshield wipers, these are things that are going to wear out with the use of the vehicle, and are therefore not warranted.
What does a "full car warranty" cover?
When understanding car warranties, the term "full car warranty" is something that still requires additional attention from buyers to make sure that it's going to cover the minor details that may come up. Even though it says "full car warranty," potentially the transmission is not included, or certain components on the engine are not included. Therefore you want to make sure you read the details before you sign for the warranty.
What is an "auto emissions warranty"?
When understanding car warranties, an auto emissions warranty is required by federal law, ensuring that the vehicle will pass emissions control tests within a certain time of its ownership, no matter how the vehicle is being used or maintained by the owner. This auto emissions warranty is a requirement by the federal government so that we know that the pool of vehicles out there are not contributing to any sort of big emission problems over a certain time of usage. This is often known as an implied warranty from the manufacturer, in the case that it's not something you have to add on or make sure of the vehicles' warranty because it comes on every vehicle sold in the US.
What is a "power train warranty"?
When understanding car warranties, a power train warranty is a warranty that covers the components of the vehicle that actually help it drive down the road, so you're looking at the engine, the engine block, the fuel delivery systems, all the things that go into making sure the vehicle runs correctly and then pass on through to the transmission. Most vehicles today have automatic transmissions, but if you buy a vehicle that has a manual transmission, you'll see that the clutch is usually not covered by these warranty systems. A clutch is basically designed to wear out over time so it would generally be excluded from a power train warranty.
What is a "rust-through warranty"?
When understanding car warranties, a rust-through warranty is something that really came about in the 1970's when vehicles were built to a much lower quality standard, where in very wet or salty air conditions rust became a big problem. Technology has moved forwards somewhat and that isn't as much of a problem as it was then. However, a rust-through warranty is still an implied warranty that comes on just about every vehicle, such that you do not need to be concerned that no matter where you live in the country, rust will not eventually eat away the skin of the vehicle.
What is a "roadside assistance warranty"?
A roadside assistance warranty is usually free coverage that comes from the manufacturer that's creating more of a luxury type product. If it's a higher price then it should provide more piece of mind. What this does is cover you if you run out of gas, if the vehicle needs towing; if you need any other sort of concierge services, this roadside assistance warranty will come in, and people will be dispatched to you if you are actually stuck on the side of the road.
What is a "bumper-to-bumper warranty"?
When understanding car warranties, a "bumper to bumper warranty” usually refers to a system that covers much more than just the power train. In essence, from the front bumper to the rear bumper, excluding wear and tear items like clutches or windshield wipers.
