What does a new car warranty cover?

TIPS AND FAQS TO HELP YOU DETERMINE IF AN EXTENDED WARRANTY IS WORTHWHILE

Before you head to your local dealership to purchase a new car, it is a good idea to understand what will be included and when you might get stuck with an exorbitant repair bill when something goes wrong. At Gifford Carr Insurance Group we not only are a reputable car insurance broker Ottawa has available, but are also ready to help you make the best possible decision with your money and new ride. Let’s learn about car warranties together.

WHAT DOES THE BASIC WARRANTY COVER ON MY NEW CAR?

If you buy your car brand new from the dealer, it will come with a bumper-to-bumper factory basic warranty.  This covers almost everything on the car except the standard wear and tear items like windshield wipers, brake pads, filters, and tires. The body panels, chassis, and safety systems are all included. If you have a mechanical failure during this initial warranty period, the dealer will fix it free of charge.

COMMON TYPES OF INCLUDED WARRANTIES AND WHAT THEY COVER

While sitting with your salesperson, they may talk about a variety of warranty options as extended car warranties which can put extra cash in the dealership’s pockets.  There are also powertrain, tire, corrosion, and even maintenance and roadside assistance services possibly included in some warranties. The powertrain warranty typically extends beyond the basic warranty and extends manufacturer protection for your engine, transmission, and suspension. Tire warranties are issued by the tire manufacturer. The corrosion clause ensures that no rust will appear for a specified period of time and is separate from your basic and powertrain warranties.

Some manufacturers promote additional services such as oil and filter changes, roadside assistance, and even concierge services for customers that purchase new or certified used vehicles from their dealers.

WARRANTY COVERAGE PROVIDED BY MAJOR CAR MAKES

You might wonder how long does a car warranty last. That depends largely on what make and model you buy. Most car manufacturers offer a minimum of a 3-year/36,000-mile basic warranty, but a few push the boundaries. For instance, Volkswagen introduced the longest basic warranty this year with a 6-year/72,000-mile version. All the high-end makes such as BMW, Mercedes-Benz, and Lexus limit theirs to 4-year/50,000 miles. The most popular car producers like Toyota and Honda offer only a 3-year/36,000 warranty. A complete list of current warranties by manufacturer allows you to enter into negotiations with more knowledge in your pocket.

WHAT IS A POWERTRAIN WARRANTY?

The powertrain warranty usually provides you protection beyond your basic warranty and only protects the major moving parts of the vehicle. If you have your transmission fail before the warranty expires, it will be repaired or replaced without any out of pocket cost to you. The engine and suspension are also covered under the powertrain clause. The emission system is not. Nor is the chassis and body panels. Your air conditioning, infotainment system, sensors, and onboard computer are not included.

HOW DOES MY CAR WARRANTY WORK?

A new car’s warranty only applies to the first owner of the vehicle. So, if you sell your car after just two years, the second buyer cannot take advantage of those warranties. Once the basic warranty expires, the powertrain warranty takes over. The manufacturer requires that you keep your vehicle properly maintained in order for the warranty to remain in effect. It does not take care of repairs for failures due to accidents.  Recalls are not part of the warranty.

SHOULD I BUY AN EXTENDED CAR WARRANTY?

While finishing up the paperwork when buying your new car, the dealer will pressure you to buy an extended warranty.  If you say yes, you are basically buying car insurance for unexpected repairs. You are betting that it will cover an expensive repair that costs at least as much as the warranty and make it worth your while. However, if you intend to own the car for just 3 years, there is no point in purchasing it. Your basic warranty will take care of you. If you are purchasing a used car, an extended warranty is a better investment as you will not have the benefit of that new basic warranty.

Not all extended warranties cover all the most vulnerable parts. Make sure that you understand the fine print before signing off on this expensive addition to your new car purchase.

HOW CAN AN INSURANCE BROKER HELP ME WITH WARRANTY INFORMATION AND COVERAGE?

Did you know that the car insurance brokers Ottawa has nearby are a great resource when shopping for a car warranty? Due to their extensive experience in handling car repairs, the costs, and current recalls issued by the manufacturers, a broker fully understands all the ins and outs found on most warranties.

Are you ready to buy your new car now? Before signing on the dotted line give the car insurance brokers a call at Gifford Carr Insurance Group to make sure your new ride is properly protected. While on the phone, we will be happy to provide some additional insight about the warranty and manufacturer of your new vehicle.