Automotive Journal

automobile warranty

What does it mean when a dealership advertises “certified pre-owned vehicles?” Sometimes, the dealer will claim they are “certified” but will simply sell the customer extended warranty service at an additional cost. While this guarantees you some protection and solid service, it’s not the same as being truly certified, which is a manufacturers’ automobile warranty. To be truly certified, manufacturers have strident stipulations. The vehicle must pass a rigorous inspection and meet mileage/condition limits. By contrast, an after-market warranty can be purchased for any car, with any condition.

First, consumers should check to find out who is backing the extended warranty service. Is it an independent company or the vehicle manufacturer? Generally, manufacturer-based used car warranties are ideal, known for the easy-to-use guarantee. With an after-market extended car warranty, the owner will need to read the stipulations to ensure that everything is covered.

For example, some companies require that owners call before the work is done. Some companies require regular oil changes and fluid top-ups for work to be covered. Depending on the arrangement, sometimes the company pays the auto mechanic directly, whereas other times the warranty company pays the car owner back later. Reading and understanding the agreement is crucial in preventing unpaid claims.

Secondly, consumers should ask if there is a deductible. For some people, paying a fixed amount per visit or per repair is a relief. For others, this deductible may still run up a hefty bill that is unacceptable. Sometimes, an extended warranty program will have a “per visit” deductible, which is one payment per shop, no matter how many parts are repaired. By contrast, a “per repair” deductible applies to each and every serviced part. While a “$100 deductible” sounds like small potatoes, it could add up if the fine print says it’s a “per repair” deductible. After getting an air conditioner, fuel pump and alternator repaired, suddenly a $300 bill may appear. The extended warranty service contract should be looked at carefully. Many warranties have a 30 to 60 day money back guarantee, so some consumers purchase it and have their lawyers look over it later to be sure it’s fair.

At the end of the day, it’s up to the owner whether or not extended warranty service is needed. Some people are perfectly comfortable setting money aside to save for possible repairs, whereas others want to feel that they can call on someone to help, no matter what happens. Extended warranty plans may not be essential for every computer, iPod or blender purchased, but for a car worth $10,000 or more, it’s certainly a smart consideration for that extra peace of mind.