Warranties are one of those things you don’t always fully understand until you’ve bought something and it breaks within the first few years. Most of the time, the items you purchase do just fine without you putting a lot of thought into what would happen if it didn’t, or what it would cost to repair or replace it. When it comes to a larger purchase, like a home or car, warranties become more important to understand. If something breaks on a car it’s not often an easy-affordable fix or replacement, which is why understanding vehicle warranties is an essential part of car ownership.
Car Warranties 101
If you’re ready to take the lesson, here are a few basic car warranty questions answered.
- What is a warranty? A warranty is a written promise or statement to repair or replace a covered item within a certain time period (the coverage period).
- How long does a warranty last? Warranties vary depending on type or part, and with vehicles, can also depend on mileage. Specific parts of the car may have an individual warranty as well.
- Are warranties only for new cars? No, you can get a warranty for certified pre-owned vehicles, extended warranties and vehicle warranties from used car dealerships as well. They may be more limited, but still bring you some peace of mind.
What to Ask Before Getting a Warranty
Probably the most important question to ask before getting a warranty is what it covers. Does it make sense for the price, or is it a car that has a solid history of low repairs? It’s also wise to have an insight into the history of the vehicle. Was it serviced regularly? Did it have any prior issues? Will you feel confident about it if you don’t get the warranty?
It’s important to ask who stands behind the warranty too. Different companies have different reputations. You want to find a reputable warranty supplier that will stand behind their word. Do your research and make sure the price of the car makes sense. All of these things will factor into whether a warranty is right for you or not. Lastly, ask yourself if you plan to keep the car long. That may affect how you feel about purchasing a warranty.
The Benefits of a Car Warranty
Beyond peace of mind, there are other benefits of having a car warranty. They include:
- Future financial protection: Car repair and replacement part costs can be on the expensive side. If something is covered, you may only have to worry about labor—and some warranties cover labor as well. This is also a benefit with the increasing costs of repair due to more complex electronic systems.
- Increases vehicle resale value: A warranty can add value to your vehicle.
- Extended coverage: A warranty that’s extended beyond the original new car warranty can protect against needed repairs that often arise later in the vehicle’s lifespan.
- A warranty can pay itself off: All it takes is one major repair to equal the value of your warranty, making it a worthwhile investment.
Warranties can cover any number of things. They can cover general maintenance, power train components, bumper to bumper and even roadside assistance in some cases. Probably the most essential step you’ll need to take before buying a warranty is reading all of the fine print. Just because something claims to be bumper to bumper doesn’t mean every part is included. Typically, things like brakes, general cosmetic issues, tires and windshield wipers won’t be a part of the coverage. Carefully consider all aspects of your potential warranty and look at if it is the right option for you. A warranty can give you piece of mind—as long as it covers all the things that are important during your car ownership.
