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June 2, 2014

What Kind of Warranties Do You Offer?

When purchasing a vehicle or having a repair done on your vehicle, it is important to know if your investment is going to be protected by a warranty. Typically, vehicles come with a warranty that lasts for up to five years while parts such as tires come with warranties that could last for as long as you own your car.

What Does a Warranty Do for You?

A warranty enables you to receive reimbursement for the cost of any work that needs to be done on the car or a particular part of the car. Depending on the terms of the warranty, the company that does work on the car or car part will bill the manufacturer directly or will bill you and give you a receipt that you can submit to whichever entity offered you the warranty.

Do Warranties Cover Everything?

A warranty may not cover everything on the vehicle. For example, you may be required to pay for new brakes or a new battery if you needed to replace your brakes or have new brake pads put on the car. This is because these are considered parts that will wear naturally and fall under the category of routine maintenance. However, you may be able to buy brake pads or tires that have a lifetime warranty on them. If this is the case, you can ask the company that sold you the brake pads or tires to reimburse you for any cost that you may incur.

What’s a Service Plan?

A service plan is not the same thing as a warranty. With a warranty, you don’t have to pay for anything that is covered under that warranty because the manufacturer is guaranteeing that the product will last for a certain amount of time. With a service plan, you are paying for the right to be reimbursed for any expense that you incur repairing your vehicle. Most service plans are sold by third-party providers that are not affiliated with the body shop that performs the work on your car.

What’s An Extended Warranty?

An extended warranty is a warranty that takes effect once the original warranty runs out. For example, if your car came with a warranty that lasted for three years, you can buy an extended warranty that will give you coverage for another three years. In most cases, you can transfer the warranty to the next person who buys the car. Therefore, you could increase the value of your vehicle on the open market if you decide to get an extended warranty on an older used car.

Asking about potential warranties on a car or any car parts that you buy makes it easier to spend hundreds or thousands of dollars on a single product. While you may never need to use your warranty, it is almost certainly better that you have it when you need it as opposed to not having it and exposing yourself financially.

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