Car Warranty Q&A

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.

 

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.

 

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!