Extended Warranty 101

It is no wonder that in today’s world of car sales there is a big disconnect when it comes to car warranties. Often times these legal agreements between the consumer and the car manufacturer are misinterpreted as a privilege when they are not. The dealers and salespeople will tell you not to worry about damages, promising that “It will be covered by the warranty!” But when something breaks, we automatically think that its the manufacturers turn to pay up and when they don’t we think THEY are cheating us. If that’s not bad enough, sometimes the dealerships will even try to slip warranty repair under the radar, classifying them as something else. It’s not the manufacturer that’s lying to us it’s the salespeople. Abuse like this is why car manufacturers so heavily investigate and scrutinize every little claim that comes through their office, like the consumer one is the person who is not to be trusted. They tell us that everything is covered, when in actuality the lack of warranty coverage can be caused by anything from abuse and expiration of warranty to an uncovered part.

Look, I don’t like unhappy customers. Ive been in the car business for over three decades and to this day, I swear, customers rarely read their original car warranty. When they are in the dark about what is included or not, emotions can get a little tense when doing business. I always encourage my customers to read their original warranty. Things are spelled out clearly in the warranty. Basically, a car manufacturer will pay for any defective parts or poor workmanship as like as you, the owner, has followed the maintenance schedule as stated in your owners manual. You are usually given a time frame, like seven years, that works along side a mileage limit, say the first 100,00 miles. Follow the suggested times about when you should change your oil, transmission fluid, battery checks, and so forth, and you are good to go.

Here’s an overview of the covered parts and services. If they come from the car maker, they’re covered by the auto manufacturers warranty. There will probably be varying coverage based on time or mileage. Anything that comes from an aftermarket manufacturer – tires, additional stereo or conversion components – are covered by the aftermarket manufacturers warranty. This will be in with the documents you get when you buy a new car. Remember to read these papers, since they tell you what is covered by who and for how long. You can avoid warranty headaches by keeping yourself informed. Maintenance products like filters wouldn’t be covered, nor would things like belts and hoses, as they are expected to wear out.

$40 for a $400 job? Don’t be afraid to ask and you too may receive the service I did when the paint on my Plymouth minivan had de-laminated (gone dull). Often conversion vehicles such as vans or limousines are covered under separate warranties for things not installed by the manufacturer. It is imperative both buyer and dealer understand the ins and outs of conversion vehicle warranties and to obtain a written warranty disclosure when making the purchase. Often dealers or field reps will opt to make goodwill-adjustments after the warranty is out of time or above the mileage limits. Time in service, maintenance records, mileage, whether any service contracts are in effect, and even customer loyalty are all taken into account. A situation which could sometimes result in a nightmare outcome can result in the customer only having to pay for a small portion of the repair as long as great care has been taken to understand the warranty, keep great records, have loyalty to the manufacturer and just ask for help!

Some of the most common warranty terms are described here. A “Bumper to Bumper Warranty” covers all basic warranty and drive train components during the period designated by the manufacturer. “Corrosion Warranty” covers all wear-through sheet metal corrosion due to normal weathering. It does not cover surface nicks, chips and scratches or dents. Warranty “Campaigns” are safety or component recalls that are announced by the manufacturer and performed at no charge to the owner. These campaigns may occur at any time, regardless of mileage or age of the vehicles. Owners are notified to bring their vehicle in to the dealer who will look up the VIN number of that vehicle in their database to see if affected by the recall. Each manufacturer specifies different warranty periods and coverages, so check with the dealer or the vehicle’s warranty card for specifics.

There is much more information about warranties and I shall deal with that elsewhere. In the mean time I encourage you to get acquainted with this subject. Consult the manager of your dealership and clarify all your doubts. Finally, let me discuss the term, hidden Warranty. Let me assure you that this is piece of fiction! Dealerships use the warranty concept to earn money. Warranty campaigns are a steady source of income for dealers because they get paid directly from the factory for the service they render in this aspect. It is no use taking your local dealer to task in the mistaken notion that they did not cover some aspect of a hidden warranty. They would gladly oblige you if they could because it would mean an income for them. It is my hope that I have made things clear for you.