All About Auto Warranties: Are They Worth It?
You are in the market for a car and being the savvy shopper that you are, you are looking to get the best deal possible on your new ride. While researching all the best deals being offered, you keep coming across advertisements of different warranties that may or may not be included in the purchase price of the vehicle. While a warranty might sound like a great common-sense idea, you may be wondering WHAT exactly the warranty will cover and if it really adds any value to your purchase. The answer to that question isn’t so simple since warranties vary. It is important to pay attention to the wording of the warranty description. Understanding your warranty options and coverages can prove to be a vital part of car ownership and maintenance when faced with repairs. Let’s review a few of the most common warranties you will likely run into while car shopping.
Factory Warranty
This is the warranty that is offered by the auto manufacturer to protect against defects in a (relatively short) time period. The amount of time and mileage may vary, and the defects covered can include any number of things. For this reason, it is vitally important to check the description and wording of the warranty to see what is, and is not, included in the factory warranty. Some companies include more than others in this initial warranty and have specific exclusions that would affect whether you would be eligible for repairs. Sometimes when purchasing a used car, especially if it is slightly used and a newer model year, there will still be some factory warranty left on the vehicle. Again, check your contracts carefully, as this warranty can be a lifesaver in some situations.
Different types of factory warranties could include:
- Bumper to bumper coverage: Will typically, for a set period of time and with a mileage cap, cover most anything that goes wrong with the car- from bumper to bumper- hence the name. However, don’t expect most of these warranties to cover regular wear and tear type items like windshield wipers, tires, brakes, or oil changes. Some warranties will include these things, but most don’t. Again, read the fine print and find out what is included and any actions that would void these warranties.
- Powertrain Warranty: A powertrain warranty is helpful but less inclusive than bumper to bumper. The Powertrain in typically inclusive of the engine, transmission, and drivetrain. There are a number of related items however that you may think would be included- but aren't. Check the warranty specifics carefully to be aware of what the warranty will cover and what it won’t. Don’t be surprised when your repairs don’t fall under this category.
- Emissions Warranty: This is a warranty that is influenced by federal laws and your area’s smog requirements. Many people overlook this warranty and pay out of pocket, or avoid repairs all together when it could have been covered. If you are having, or have had any emissions-related issues with your vehicle, be sure to look into this one in more depth to determine if you might be eligible. A simple call to the manufacturer, armed with your vin number, should be able to tell you if you qualify for a manufacturer's emissions warranty or any other manufacturer warranties for that matter.