When you purchase something of value, you want to protect your investment as best you can. Many new products and goods come with a warranty. This is similar to the insurance that you would purchase. A warranty promises to pay for repairs or replace an item if it was defective or faulty. New cars come with warranties, which can give you peace of mind in the event of an unforeseen incident. Instead of paying to fix a part or component, the warranty would take care of it at no cost to you. Different types of warranties cover different items, so it is important to understand what they entail.
Important Factors to Note
Your car’s warranty may depend on the vehicle’s year, make, and model. There is a manufacturer’s warranty and an extended warranty, or aftermarket car warranty, which you can purchase when you buy a new car or renew when the original warranty runs out. Warranties are only good for a specific period. Some warranties can be for a year, while others may be good for 10 years.
What It Covers
A manufacturer’s warranty typically covers the cost to repair or replace certain features on a car. Car companies often refer to this as a bumper-to-bumper warranty. This includes coverage of the braking system, suspension, electrical system, steering, climate control, and other special features. There is also a powertrain warranty. This will cover any necessary repairs to the transmission or engine as a whole.
When you buy a car, make sure you understand the warranty period. This will vary, but most bumper-to-bumper warranties are good for between three years and five years. Be aware that there is also a mileage component with the warranty. This is typically between 36,000 miles and 60,000 miles. The warranty will expire on whichever comes first, the year or mileage. For a powertrain, some manufacturers will offer warranty periods of up to 10 years or 100,000 miles. However, most are set at five years and 60,000 miles.
What It Does Not Cover
Warranties will not cover everything, whether a new purchase or a lease. As the owner, you will be responsible for the maintenance and upkeep of the vehicle. You will need to take the car in for regular oil change and tire rotations. The warranty will not cover basic wear and tear on the car. You will pay for new tires, brake repairs, and new filters. You should also not expect any coverage on items that you fail to maintain or deliberately break.
Getting an Aftermarket or Extended Warranty
There are pros and cons to buying a used car. A used car will cost you less in monthly payments, and it will not depreciate as fast. Of course, older cars can have more mechanical and performance problems. Your used car will also not have a manufacturer’s warranty. If you do not purchase an extended warranty, you will have to pay out of pocket for repair costs to key parts, components, and systems. An extended warranty is essentially a service plan for which you pay to cover certain repairs. You can choose the warranty level you want. Extended warranties can require a significant financial commitment, so make sure you review your budget before buying one.
Knowing Whether an Extended Warranty Is Worth It
Extended warranties can ease your mind if you purchase an old vehicle. If you are worried about your used car needing serious mechanical repairs, a warranty might be the right option for you. Evaluate the cost of the extension against what you estimate you would have to pay to fix certain issues. Though you may not be comfortable with the warranty costs, it may be less expensive than repairing your older car. However, if your car has a good track record and is still in good condition, an extended warranty might not be the right choice.
Car repairs can add up and eat away at your budget. Fixing problems with the engine can be financially stressful. If your car has a warranty, you will not have to worry about paying out of pocket for certain items. If you have questions about your car’s warranty, you can talk to someone at your local dealership.
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