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. Read more...
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Filed under: Extended Auto Warranty Providers, Extended Car Warranty Coverage
Posted on March 14th, 2008 by Warranty Direct
Lemon Law:
The general definition of a Lemon Law vehicle: A vehicle with (a) major, repeated problem(s) that has been repurchased by, or had its purchase price renegotiated with, the manufacturer. The state then earmarks these as Lemon Law or Buyback vehicles. These vehicles are ineligible for coverage.
Maintenance Guidelines:
This is the normal, routine maintenance that is recommended by the manufacturer of your vehicle to keep the vehicle in optimum condition. These include such things as oil changes, tune-ups, checking fluid levels, tire rotations, wheel alignments, belts, hoses and others as described in your owner’s manual.
Manufacturer’s Warranty:
This is the standard warranty that every new vehicle sold comes with. All factory-installed parts are covered against defects. Typical manufacturer warranties are 3 years or 36,000 miles or 4 years or 50,000 miles. Check your manufacturer’s warranty manual for warranty information or visit our Manufacturer’s Warranty page. Read more...
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Filed under: Glossary of Auto Warranty Terms, Warranty Direct
Posted on February 18th, 2008 by Warranty Direct
In recent years, many car manufacturers have increased the length of the powertrain warranties offered on their new vehicles. Most of us are familiar with the 10 year powertrain warranties offered by Hyundai, Kia and Mitsubishi and the 5 year powertrain warranty offered by General Motors. Most recently, select Chrysler, Dodge and Jeep vehicles now come with a “lifetime” powertrain warranty.
Consumers should be aware that these longer powertrain coverages leave them vulnerable to many expensive repairs on the vehicle. Special extended warranties called “Wraps” were created to close this gap in coverage. Read more...
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Filed under: Consumer Affairs, Extended Car Warranty Coverage
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.
For all the talk of 120+ point inspections, limited warranties, vehicle history reports and others, there is no data to suggest that CPO vehicles are any more reliable than their non-certified cousins. Given that, why pay more for “certification”?
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Filed under: Consumer Affairs, Extended Car Warranty Coverage, Warranty Direct
