Things you need to know about bumper to bumper extended warranty
Car Finance

Things you need to know about bumper to bumper extended warranty

When you buy a new car, the dealer offers you a bumper-to-bumper warranty that covers the new car for three years. This warranty will cover most of the things related to your car in case it malfunctions or meets with an accident. For instance, if the oil starts leaking or the engine quits, you can take it for repair at no extra charge.

What does car extended warranty mean?
A car extended warranty is something that the dealer wants you to buy in addition to the original warranty. This costs a lot of money and would provide cover for two more years. If and when you decide to buy an extended warranty, ensure that it covers the same or more components as the original one.Then there is powertrain warranty as well. Manufacturers offer ten years of powertrain warranties which are nothing but a car warranty on those components that are less likely to malfunction or get damaged like the transmission, engine, and driveshaft.

Third-party extended warranty
You get a warranty when you take car financing for a used car as well. In case the vehicle is still under the original warranty, the price you pay for the car would include the balance amount of the warranty as well. Extended warranty is available for a used car as well but the same needs to be purchased from a third-party as the car’s manufacturer or the dealership would not offer the same.

Warranty fraud
It is essential to do a proper research before buying a warranty for a used car as warranty fraud is quite common. Though you would pay thousands of dollars, you may not be able to service your car with it.

Coverage and exclusions under bumper-to-bumper extended warranty
Even though dealers are obligated to offer complete coverage, they sometimes deny it. There are different components which are not covered under bumper-to-bumper warranty.

  • Tires are generally covered under the manufacturer’s warranty. But factory accessories, like engine modifications or stereos, are covered usually. However, it may come with a clause that would state that the modification is not under the coverage. This is allowed since they are not required for the functioning of the car but are extras used for ornamental purpose.
  • Seat belts are covered only for use, not for wear and tear. Thus, even if they are discolored or frayed, they cannot be replaced if they hold fast properly.
  • There are issues related to headlights as well. You may get it replaced in extreme situations like excessive moisture build-up but in case of burnt-out bulbs, you would need to pay for the same.
  • There are third-party electronic devices installed in your car like the wireless headphone systems, DVD players, etc., that are not manufactured by the automobile company. All these would have a warranty but it will not be covered by the car’s warranty. Moreover, they would have a year of coverage and not more than that.
  • You must be careful about regular maintenance as well. Since warranties do not cover things like fluid top-offs, oil changes. However, they may be done free of cost sometimes if you can get hold of any offer.

When you take a car loan to buy a car, collect information on the warranty coverage as well. Read the agreement in details. Put your queries forward if you have any. When taking the car for repairing, ask the dealership how much it will cost if the same is not covered under warranty. This should be asked before any work on the car has started.

Get the car loan approval first and then choose the best dealership to buy your car so that you may enjoy a good warranty coverage as well. Having a warranty is extremely important to ensure safety. Read the inclusions and exclusions properly as stated in the warranty to take an informed decision. Go for an extended warranty if you find it essential for your car.