The Different Types of Car Warranties
Let's take a look at each one in more detail:
These are provided by the dealer and cover items such as squeaks, rattles, small adjustments, alignments, leaks, and any other type of small annoyances you may encounter during the first few weeks of ownership.
There's usually a time limit of 90 days in which you can use the adjustment warranty.
Since the warranty is provided by the selling dealer, they're the only ones that will fix the problems. If you purchase a car located far away from home, it's important to do a thorough test drive to make sure there are no problems before taking the car home - and if there are, make sure you get the dealer to fix them on the spot or agree to do it later.
The factory warranty covers all major components of a vehicle up to a certain time period or mileage milestone (whichever comes first).
Manufacturer's warranties are broken down into 3 types:
- Bumper to Bumper Warranty
This is the most comprehensive part of a factory warranty and covers all parts and systems of a vehicle, excluding "wear and tear" items such as tires, brake pads, and wiper blades.
Many vehicles these days tend to have expensive problems with electronics and this is where the real value of a bumper to bumper warranty comes into play. Most manufacturers offer a 3 year/36,000 mile bumper to bumper warranty, with some such as Hyundai and Mitsubishi offering up to 5 years/50,000 miles of protection.
- Powertrain/Drivetrain Warranty
This covers the engine, transmission, differential and other mechanical parts of the vehicle. Most manufacturers provide a longer coverage period for powertrain warranties than they do with bumper to bumper. Some, such as Hyundai and Kia provide up to 10 years/100,000 miles of coverage.
- Corrosion/Rust Warranty
This covers repairs due to rust or premature deterioration of major sheet metal. Some manufacturers provide lifetime protection.
Secret warranties are provided by most manufacturers, but most car buyers don't know about them. They're sometimes referred to as "policy adjustments" or "goodwill service".
If your vehicle develops a major problem after the factory warranty runs out, sometimes all it takes to fix it is to call the manufacturer's customer service number and complain.
It especially helps if you've been loyal to the brand in the past, or if other car owners are having the same problems.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
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- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid