What is a car warranty policy?
Car warranty policies tend to cover unexpected repair bills or problems such as break downs or failed parts. New cars come with a manufacturer’s warranty, but when you purchase a used car that does not have a warranty, you can in fact purchase one yourself.
When it comes to used car warranties, they’re typically provided by the car dealership, but tend to be limited anywhere from 30 days to 3 months. Some dealerships will provide an option to purchase an extended warranty. Many people hear this offer and think it’s a con so say no.
The question you should ask yourself is, would any of the points covered in this blog post affect you financially and leave you in a position whereby you couldn’t afford to repair your car? If the answer is “Yes” then it’s certainly worth exploring purchasing car warranty You don’t necessarily have to purchase an extended warranty through the car dealership, you do have an option of purchasing a warranty from a provider of your own choosing which could cover you for more.
Manufacturers car warranty
A manufacturers car warranty protects you from the financial costs of repairing problems and usually lasts for a fixed period. What you need to be careful of is that there also tends to be a mileage limit. If you exceed the limit before the end of the warranty period, this automatically stops the warranty cover. If you use the car for business purposes for example and use more than the standard mileage per year, it’s probably a good idea to look at an extended warranty. Certainly, check what the mileage limits are and work out if it’s doable for you not to exceed this as this catch out so many people.
Something to remember, If you purchase a car that is less than 3 years old it could still be covered by the remaining manufacturer warranty, but the dealership should provide you with that information. If they don’t, it’s something to definitely ask about. It is worth remembering though, it’s not a legal requirement for a used car to come with a warranty.
Purchasing a used car
A lot of people purchase a used car and automatically assume it’s a new car forgetting it’s true age and that it’s been previously owned. Yes, the car is new to you but at the same time be conscious it is a used car of a certain age, and it isn’t immune from problems as any vehicle with age and mileage would be expected to have.
Should there be a major parts failure within 6 months of purchase, you can take the car back to the dealership as per the consumer credit act. If the dealer refuses, they may offer to pay part of the cost or just deny your claim. A used car warranty could eliminate the stress of a potential refusal. So again, this is something to heavily consider. We would hope it never happens, but unfortunately there are cases we see where this has happened, and a customer has opted against a warranty which leaves them with not many options regarding the car.
What should car warranty cover?
With cars being so much more advanced currently the downside to this means there is more room for potential issues. The good news is warranty policies will cover you on almost anything other than what they class as ‘wear and tear’. This can be anything such as windscreen wipers, tyres, clutch and brake pads to name a few. These things are expected to wear over time, but if something goes wrong not long after you have purchased the car it will usually be covered within the first 90 days of purchase.
Lastly, we would advise that you make sure you’re aware of all the terms and conditions of your car warranty, so you know what is and isn’t covered as they all vary. Usually, your warranty should cover the Engine, Gearbox, Fuel and Ignition systems, Suspension, Steering, Electrical components, Clutch, ABS braking system, Ignition and Coding system.
