Car Warranty Facts You Should Know

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Questions Answered about Car Warranties
All new cars come with excellent warranties that cover the powertrain, as well as bumper-to-bumper coverage of the vehicle. Some even come with roadside assistance and more. When you buy a new or used car, you may be offered an auto service contract that protects you from unexpected or expensive repairs. But you'll want to make sure you're not paying for double coverage when your new car warranty might suffice. 

In this car warranty guide, we'll offer answers to such questions as: What is a car warranty? What is an extended warranty? How do I know what's covered? What are exclusions? First, let's start with the basics. 

What's Important?

What is important to you when you buy a new car? There's the vehicle itself, its trim level and options as well as EPA rated gas mileage. Then there's the good deal you got on purchasing it and details of the auto loan. Also, right at the top of the list, you have to consider the automaker's factory warranty. The warranty plan has to be considered in your decision making process when considering the right vehicle for you.

With new cars, factory warranties are not all the same. Some last for a longer period of time and offer extended mileage. There are warranties that include roadside assistance, and even free oil changes. What do you really need to know about auto warranties? Read on.

What Voids Your Vehicle Warranty?

One of the best things about buying a new car, besides that new car smell, is having auto warranties that cover the powertrain as well as bumper-to-bumper coverage. Car warranties provide instant peace of mind when you drive off the lot. But you should be aware that there are things that consumers do that actually can void a car warranty. In fact, many thousands get voided every year.
 
At Lithia Motors, we want you to enjoy many trouble-free miles of enjoying your new vehicle. We want you to understand what voids your vehicle warranty so you can be armed with the knowledge you need to keep that important automaker's warranty in full force.

Claim Denied

To start with, don't forget that an auto warranty is a contract. Like all contracts, it can be broken, so read your vehicle warranty info to make sure you understand the kinds of things that can potentially void the warranty. Sometimes a specific repair may be denied without voiding the warranty. Other times, your warranty can be voided in part. Your warranty contract spells out what you need to do in order to keep your warranty in effect. Because if your claim is denied, the repair will have to be paid out of your own pocket. Yikes!
 
Most of this is common sense. For instance, let's say that you haven't followed the auto manufacturer's guidelines for ongoing vehicle maintenance. If you never have your oil and oil filter changed, that can potentially cause damage to your engine. The fact that you didn't have routine service performed on your car can void the powertrain warranty.
Another problem area is when you have aftermarket parts or products installed on your car while your vehicle is still under warranty. This can include anything from high performance exhaust or tuner software to aftermarket shocks. However, the automaker cannot deny a warranty claim or void your warranty because you have installed an aftermarket product. The Magnuson Moss Warranty Act was enacted in 1975 and states that if a customer installs such items when the car was new, and the car fails as a result, the warranty must remain in force. The Federal Trade Commission provides a similar advisory stating that in such as case, the automaker has to provide proof that the failure was caused by the installation of the specific aftermarket product.

How to Avoid Being Voided

With that in mind, let's take a look at common mistakes people make that lead to their auto warranty being voided. When you buy a new car, the automaker suggests that you use only original equipment manufacturer (OEM) parts on your car. These are parts that are identical to what comes on the vehicle when it was new. The same can be said for the suggested motor oil, various fluids, filters, hoses and belts. For this reason, many people only take their car to the auto dealer they bought the car from in order to get maintenance and service such as oil changes.
 
Automakers do an enormous amount of research and spend a fortune to make sure the fluids that are suggested for your car will provide the best performance for your vehicle for the long haul. However, please know that you are perfectly within your rights if you go to a "fast oil stop" type of oil change facility in order to save some money. Just be sure to keep all of your receipts for service.

Proof of Proper Service

If you choose to take your car to a trusted local mechanic, use cheaper aftermarket parts, or visit a quick oil and lube facility, keep all of your receipts. Put them away in a safe place. If something goes wrong with your car that becomes a warranty issue, you will need to prove that the service technician used the specified fluids and filters that were suggested by the automaker.
 
When you file a warranty claim, you will be asked for proof that proper services were done to keep your car in good condition. If you can't come up with receipts as proof that ongoing maintenance was performed according to the vehicle's owner's manual service requirements, it could void your claim. When you go to the auto dealer that sold you your new car, they keep meticulous records of all the services they have performed. Those services include the use of the manufacturer's suggested parts and service fluids. That way, if you ever need to use your warranty, the dealer will transfer all the vehicle records to the warranty provider in order to offer proof that you are doing your best to service your vehicle properly.

Changing the Ride

Another thing that people do frequently is to install lift kits or lowering kits to change the suspension of the vehicle. One of the most common ways to customize your car is to change the wheels and tires to other than OEM specs. Modifying the suspension and the ride is a bad idea. 

Again, the manufacturer did an enormous amount of research and testing to assure your vehicle performs at peak performance. Customizing the suspension will compromise vehicle stability. Stay away from suspension mods as they can cause problems in your car's drivetrain and transmission, steering and suspension. If you make a warranty claim after such alterations, the automaker will go over your changes with a fine tooth comb.

Go-Fast Foul-Ups

The same may be said for making high performance modifications to your vehicle. If you are thinking of turning your F-150 into a Monster Truck or your Toyota Camry into a reject from a Fast and Furious movie, hold off until your warranty has expired. Tuning your vehicle with power chips, performance cams and exhaust systems is a quick way to push the limits of your car's gaskets, to burn your pistons and blow other engine internals.

Twisted Titles, Floods & Twisters

Keep in mind that if your car is in a bad accident, was totaled and was issued a "salvage title," your warranty will be voided. Also, if your car shows signs of being badly abused or neglected, you can also lose your warranty. We're talking about anything from street racing to off-roading your Porsche. The definition that the warranty company will use for "misuse of vehicle" includes anything that is outside the normal range of operation or if you never changed the oil or maintained the car. Your warranty can also be voided for damage due to earthquakes, fires, floods, hurricanes or tornados.

Questions Answered about Car Warranties

What is a Car Warranty?

A car warranty is provided by the vehicle manufacturer on all new automobiles. It is a contract that is good for a specified time and/or mileage, whichever comes first, that will fix or repair certain malfunctions or defects in the car. Sometimes used cars come with some sort of warranty coverage as well. Auto warranties generally cover such features as electronics, brake parts, the engine and transmission. 
Extended warranty or auto service contracts are often available as an “add-on” to your existing warranties from the automaker. Many times, extended warranties or service contracts can cost thousands of dollars. Be sure to ask questions and get answers in writing, because it is important to know what you are paying for and exactly what you are getting for your money. 

Both vehicle service contracts and extended warranties are accepted at dealerships, though an extended warranty is usually only used at your specific car brand’s dealership. On the other hand, vehicle service contracts may be used at any dealership or ASE certified repair shop. 
Using aftermarket or recycled parts to repair your vehicle won’t void your warranty, but the manufacturer can require you to use specific OEM parts for a repair if they are provided free of charge under your warranty. Aftermarket parts are made by a company other than provided by the automaker. Recycled parts may be used or rejuvenated components that were original equipment by the manufacturer. 

If a shop installs an aftermarket or recycled part that fails due to being defective or improper installation, you may be denied coverage on the repair under your warranty. But all auto extended warranty contracts are not created equal. Read your contract cover-to-cover to know what your contract says about aftermarket parts. 
Yes, always keep all service records on your vehicle, even for oil changes and tire rotations. Keep a file to keep track of all repairs. You will need your service records if you ever have to use your car warranty and they are important to show prospective buyers when you sell the car.
Before you purchase a service contract or extended warranty, be sure to read all the fine print. Make sure you know what is covered. You don’t want to duplicate coverage. Check to see how many years and what mileage is covered under your manufacturer warranty. You don’t really need a service contract that starts before the automaker’s warranty expires. 
Extended vehicle protection plans cost less the earlier you buy them, and the cost rises and your vehicle ages and accrues more mileage. Service contracts are generally based on the make and model of the vehicle as well as the condition of the car, especially if it is used. It spells out what services are covered and the duration of the contract. Depending on the contract, you may have to pay a deductible amount any time your car is repaired. 
Be aware of “exclusions” that deny you coverage for any reason. Some contracts deny coverage for average wear and tear of the vehicle. Service contracts can also limit the amount they will pay toward towing charges or rental car costs. Some contracts have a clause for depreciation of the vehicle in which the company may only pay for partial repair or replacement costs based on the car’s mileage. 

Some contracts require you to follow the automaker’s recommendations for routine service, such as oil changes. If you have not had such routine services performed, it can void your contact. That’s another good reason to keep all service receipts so you can prove that you have properly maintained your car. 
When your car needs repairs, some service contracts allow you to choose among service dealers or authorized repair shops in your area. Others will require you to use the specific dealer that sold you the car. Make sure to find out if you will need pre-approval from the contract provider for any repair work.  

Some contracts make you pay for covered repairs and then reimburse you afterwards. If that is the case, make sure you know how long you will have to wait to get your money back from the company. 
Read the fine print on the contract and/or talk to the warranty company to see if your extended warranty is transferable to a new owner. Many are transferable for a small charge and having a transferable warranty can increase the resale value of your car. 
Most extended warranty plans offer flexible payment plans. These generally get started with a down payment and monthly payments over 12 to 24 months.
Many extended warranty plans include 24/7 roadside assistance, car rental, and trip interruption for the entire life of the plan. Some warranties even allow for optional seals and gaskets coverage, wear and tear coverage, and tire and road hazard coverage.
It is recommended that you return to the dealership where you purchased your vehicles or at the Lithia Motors dealer near you. Some service contracts allow you to use ASE-certified auto repair shops that are outside of auto dealership networks. 
Contact Lithia Motors. You can chat to one of our knowledgeable professionals right here on the lithia.com site. Whether you have questions about your vehicle’s factory warranty or are thinking of purchasing an extended warranty, Lithia has the answers to help get you down the road with the best thing that a car warranty can provide… peace of mind. 
The Bottom Line
Not only do these plans go into great detail about the many parts of the car that are covered as well as limits to the coverage, they also spell out how long your vehicle will be covered regarding both time and mileage. You don't want to find yourself in the position of filing a claim only to discover that your car is over the mileage requirement. 

If you want to keep your warranty intact:
  • Read it completely from cover to cover and understand it 
  • Make sure you know what is covered and what is not
  • Follow the manufacturer's recommended service intervals
  • Check your Owner's Manual for details
  • Keep all your service records and receipts for repairs.


Before you do any mods to your car, truck or SUV that are outside the auspices of your automaker's recommendations, consult the trained professionals at Lithia Motors. We've got a Lithia Auto dealer near you and we can service your vehicle to make sure you don't accidentally void your warranty.

Getting an extended auto warranty through your local Lithia Auto dealership will assure that you're getting a plan that works for you and ticks all the boxes when it comes to taking care of your car and saving you money. We care about you and want to take care of all your transportation needs, because at Lithia Auto, we want to keep you as a customer for life!
Let Lithia Help 
Getting an extended auto warranty through your local Lithia Motors dealership will assure that you're getting a plan that works for you and ticks all the boxes when it comes to taking care of your car and saving you money. We care about you and want to take care of all your transportation needs, because at Lithia Motors, we want to keep you as a customer for life!