Posted on May 28th, 2008 by Warranty Direct
All new cars come with several warranties, from bumper-to-bumper coverage to those that cover specific components like the powertrain, emissions system and rust perforation. A new car can come with 6 or more warranties which can be daunting for its new owner to wade through.
Bumper-to-bumper: Often called the basic warranty, a bumper-to-bumper policy covers virtually every component on a new car. Most exclude regular maintenance, like fluid top-offs and oil changes, but a few luxury brands — most notably BMW and Saab — have separate free-maintenance provisions. Bumper-to-bumper warranties usually expire faster than powertrain warranties. American and Japanese cars typically come with a 3 year/36,000 mile warranty while luxury and more upscale brands carry a 4 year/50,000 mile warranty.
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Filed under: Extended Auto Warranty Providers, Extended Car Warranty Coverage
Posted on March 10th, 2008 by Warranty Direct
Here are some common terms you will need to know as you research extended warranties.
Administrator:
The company that authorizes and pays the repair facility for repair work to your vehicle. The administrator works with the repair facility to make sure your claim is handled properly. As they are the company that pays your claim, their financial strength is the most important factor in choosing a warranty company.
All Wheel Drive (AWD)
All four wheels are driven by the engine. AWD systems are superior to 4WD because they can be used under any road conditions. AWD systems use a center differential to allow the front and rear wheels to rotate at different speeds. AWD provides better traction than front or rear-wheel drive.
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Filed under: Glossary of Auto Warranty Terms, Warranty Direct
Posted on February 13th, 2008 by Warranty Direct
Buyer Beware…The premium charged by dealers offering Certified Pre-Owned (CPO) vehicles is often not a good value. Many surveys cite that the warranty tacked on to a CPO vehicle is the main reason for purchasing the car. What most buyers do not realize is that the warranties that are tacked on to CPO vehicles are often limited powertrain warranties and/or short term mid-range coverages.
Certification doesn’t come cheap. For luxury cars, the average premium charged is 7.8% of its price, or $3,400. That money will buy you a full bumper to bumper coverage for 4-5 additional years with lots of money left over.
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Filed under: Consumer Affairs, Extended Car Warranty Coverage, Warranty Direct
