Auto Warranties

After inspecting the car and deciding on the options you would like in the car, you should talk to the salesperson about the warranty. There are different kinds, as well as exclusions, you should be aware of before going to the dealership. A warranty can help protect you and your car in case a part will need to be repaired or replaced. Warranties are part of any new car package. You have the option of purchasing an extended warranty if you feel it is necessary.

Types of common new car warranties include:

Basic warranty
Manufacturer warranty
In-house warranty
Implied warranty
Extended warranty

These warranties each have their own features. Regardless of which warranty you will receive or choose to purchase, you should have some type of warranty that will cover some or all of the cost involved in the maintenance of your new car.

Basic Warranty

A basic warranty will cover specific parts of the car such as the engine or transmission. These warranties are placed on most new cars. This means that if anything should happen to the engine or the transmission within a certain amount of miles (usually within 60,000+), you will be covered for the repair costs. This warranty could save your thousands of dollars depending on the damage.

Not all basic warranties are the same, however. Other basic warranties will cover brakes, HVAC (heating and air conditioning systems), computer systems, and SRS (air bags). You will need to ask the salesperson the extent of the warranty. This is important information that you should be aware of since dealerships and manufactures offer different warranty packages. This could be a deciding factor for you when you are interested in two different cars.

Manufacturer Warranty

A manufacturer warranty will vary. This warranty is offered by the manufacturer and can cover any repair or replacement problem you may have with your car within a certain amount of miles. You may have to bring the car to a dealership or manufacturer repair center in order to have the repairs done. Some manufacturers will offer you a credit toward repairs if you elect to take the car somewhere else.

Repairs will include items that are included in the basic warranty and more. The manufacturer may even pay for a rental car for you to use while repairs are being made. You should read all the paperwork that comes with this warranty so that you will not be surprised if a repair or replacement is not covered. This type of warranty may also play a part in which new car you buy.

In-House Warranty

An in-house warranty is offered by a dealership. This warranty will usually cover smaller repairs, oil changes, and other services. The dealer may give you a car to use for the day while the repairs are being made.

You should ask the salesperson how long this warranty will last and what it will cover exactly. If you live close to the dealership, then it makes sense to take the car to them for repairs. But if you live further away, it may not be in your best interest. Make sure you have other warranties beside an in-house warranty before buying a car. If not, you may be stuck bringing the car to the dealership each time there is a problem.

Implied Warranty

This is the standard good faith warranty that the government requires for all cars on a lot. While this warranty is only good for a few days or a week, it should protect you in the event you bring your new car home and you immediately have problems with the engine or the transmission. This warranty should not be your only warranty, however.

Extended Warranty

You have the option of purchasing an extension to your warranty if you want. This will extend the mileage that will be covered on your car. Since many manufacturers are offering 100,000 mile warranties these days, you may not find it necessary to buy an extended policy. There are three extended warranties that are available:

Power train warranty - This warranty will include any repairs that will have to be made to the engine or transmission.

Bumper to Bumper warranty - This warranty will cover all parts within the car that are not on the exclusion list. This is a list of parts that are not covered.

Named component warranty - This warranty will cover mechanical systems within your car.

You should consider this an extended warranty policy if you travel often for business, you live in an area that is tough on a car, or if you live in a high crime area. These warranties do not cost that much, and may offer you peace of mind.

When shopping for a new car, you should consider the type of warranty you will be offered. Many times you can negotiate to get a better warranty. This is usually the first area that salespeople will try to negotiate. By knowing the different types of warranties and what they will cover, you will be in a better position when asking for a better warranty or one that will cover your car for a longer amount of time.

You should also be aware of exclusions. These are parts of the car that warranties do not cover. Exclusions may also tell you the types of accidents and other incidents that will not be covered. This is a section of the warranty that you should pay particular attention to.

You should also consider that adding features to your car after you have purchased it may cause the warranty to be decreased. Additions to the body including spoilers, lowering the suspension system, or adding a larger engine may terminate your existing warranty. This warranty does not cause problems that occurred after you made improvement to your car. You should ask about improvements before taking out the warranty.