Let’s start from the top, shall we? What is a warranty? According to Merriam-Webster’s dictionary definition, a warranty is “a usually written guarantee of the integrity of a product and of the maker’s responsibility for the repair or replacement of defective parts.” Usually written out in law abiding language, a warranty is filled with scenarios in which your car might fail or breakdown and a promise that the manufacturer will cover the needed repairs in the event of any of these scenarios. The other side of the warranty is a series of terms and stipulations that must be upheld by the owner in order for these repairs to be covered by the manufacturer. These stipulations range anywhere from the amount of miles you drive to regularly scheduled maintenance of your vehicle. Failure to abide by these written rules will usually nullify the warranty all together. It is because of this that a buyer should always read the presented warranty fully and with great attention to detail to avoid defaulting on the party to party contract.
Most all warranties have two finite forms of expiration clauses. The first is in terms of years or months. They can range anywhere from 1 year to 12 depending on policy. The alternative expiration is based on the number of miles a car has. When the mileage is reached, the warranty is void, even if there is still time left on the expiration date. An example of this would be a 3 year or 36,000 mile warranty. If you go three years without driving 36,000 miles, you will get the full three years under the warranty (granted you obey the terms of the policy). Conversely, if you’re at a year and a half, but pass the 36,000 mile mark, you’re warranty is up.
There are generally two types of warranties in the automotive industry. The first, described above, is called a Manufacturer Warranty. It’s the warranty that comes with new vehicles. Most of these warranties are also called “exclusionary plans” because it is much easier to list everything that is not covered by the manufacturer as opposed to the thousands of problems, parts and malfunctions that are covered. Knowing you’re warranty will be exclusionary is a good way to tell if you’re getting the max coverage or not. In the end, these warranties are only offered at dealerships at the time of purchase.
The other type of warranty is an Extended Warranty or a Vehicle Service Agreement. These are offered for those buying used cars or looking to have warranty coverage after the Manufacturer Warranty wares off. They are orchestrated thorough third party businesses and usually do not cover as in-depth as exclusionary plans. Companies like Warranty Direct do a good job offering a range of different protection policies. These warranties work much like the Manufacturer’s in that they offer a year or mileage expiration point, except they tend to reach out for longer time and mileage frames. If you’re buying a pricey pre-owned vehicle, you should greatly consider getting the best extended warranty you can.
Running hand and hand with understanding warranties is understanding how to shop for the right warranty. That is the true test of a smart consumer. When a warranty is offered to you, you should look for a few key elements to determine if the agreement is on the level. Keep your eyes out when reading one of these warranties for anything pertaining to restrictive service clauses. These are clauses in the warranty that nullify the contract if the vehicle is not serviced at a certain facility or shop. These have been deemed illegal, so if you see something in your reading that suggests it might be a restrictive service clause, bring it up on the spot and demand it be removed.
Since 1999, The Unfair Terms In Customer Contracts Regulations has been in place around the world to protect consumers against unfair contracts such as warranties. Under this act, any phrase or section within a warranty that qualifies as unfair to the consumers is omitted. If you spot a stipulation after signing that might seem impossible to carry out or might fall under the act, you should consider seeking out legal assistance to remedy the terms of your warranty agreement.
One of the big things when picking an Extended Warranty is who is on the other end of the policy. You must be certain that the company providing you with the warranty is a trusted and reliable business that will come through if your vehicle breaks down. Some sellers of warranties are facilitating deals for another company. Look for companies that have a strong customer approval as well as a healthy financial position. Along side that, be sure to know if the other party is covering parts and labor costs. Make sure they either are covering these costs in the warranty or you are aware and willing to pay if they do not.
As you can tell by now, there is much more to warranties than reading a bunch of sentences and signing on a dotted line. It all ties into the responsibilities of owning a vehicle. This responsibility is a dire one and should be understood and carefully followed even after you do sign. There is nothing worse than your car breaking down and learning that you’re warranty is void because you didn’t do something as simple as change the air filter at 10,000 miles. Avoid these pitfalls and you’ll avoid spending unnecessary money, time and effort. Just like Checkers the dog, your car needs to be looked after.
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