Understanding the Different Car Warranty Types
- May 11, 2021
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Warranties are an important part of many large purchases we make, and vehicles are often among these. Both for new cars and for used cars, considering a warranty or other related forms of protection is an important task you should be keeping in mind while you’re on the car market.
At Adonis Auto Group, we’re here to help. Not only do we offer a wide range of used cars for sale, we also assist with important financial themes like obtaining an auto loan, financing a vehicle and, yes, warranty and related areas that keep you protected in case of incident. What are the various warranties or similar products that might be offered for a new or used car, and what is it important for you to know about within each? Here’s a basic primer.
New Car Warranty
Starting from the top in the warranty world, the new car warranty is one that’s generally offered on every single brand-new vehicle manufactured. It’s also sometimes called a manufacturer’s warranty, as it’s generally offered by the company making the vehicle to begin with.
This warranty functions as a guarantee from the manufacturer that the basic components and systems of the vehicle will function properly for a given period of time – as long as the car is operated properly (there will be conditions for proper use as part of the warranty). These warranties are generally listed with both a mileage total and a number of months, and will end whenever one of these runs out first – so you might get a bumper-to-bumper warranty for 36 months or 36,000 miles, and whenever one of these thresholds is crossed, the warranty expires.
It’s important to realize that new car warranties generally transfer between owners. So if you purchase a used car that’s still under its manufacturer warranty, you are usually eligible for its benefits. However, it pays to confirm this first.
In many cases, a dealership will buy a slightly used car from an owner, or perform a trade-in for it. They will then give it a solid reconditioning through their service department, at which point it will be listed as a certified pre-owned vehicle that’s in great shape and carries solid value.
In these situations, an extended warranty is often offered by the dealership making these fixes. Many will add more months or miles to the original manufacturer’s warranty, while others might simply add new coverage for the new owner.
If a used car you’re buying doesn’t come with an extended warranty, don’t panic: There are also what are known as service contracts you can often purchase. These allow you to be covered in several areas, from potential repairs to standard yearly maintenance and many others. They will often involve a deductible that you pay toward any of these services, but then will help you cover larger costs for the service of your vehicle. While this is not the same thing as an extended warranty, largely because of the deductible you pay, it’s similar in many ways.
For more on new and used car warranties, or to view our used car inventory or learn about any of our low credit used car loans, speak to the staff at Adonis Auto Group today.