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Car Warranty Overview

Car Warranty

What is a Car Warranty?

A car warranty is a document that is delivered by the seller to the purchaser of a car at the time of sale; the car warranty is an assurance or type of guarantee that will provide the purchaser a form of repayment or replacement if the vehicle purchased does not perform as expected or fails to properly function.

A car warranty is offered in the form of a contract; each warranty will list specific functions and components of the automobile, that if prove defunct or ultimately fail will be replaced or refunded as promised by the car warranty.

Types of Car Warranties:

The two basic types of car warranty are those offered in the aftermarket (extended coverage warranties) and those provided by the auto manufacturer. Regardless as the type of warranty; however, the purpose of the car warranty is to provide coverage, in the form of monetary repayment, if the car is defunct and requires major repairs.

Manufacturer warranties, in contrast, are placed on new vehicle purchases and generally cover the power train—meaning the engine, transmission and other major components of the automobile. The manufacturer’s car warranty is typically offered for a limited period of time or for a certain number of miles.

Aftermarket car warranties may typically be purchased both used and new cars; the generic aftermarket car warranty will cover various components of the automobile depending on the specifics latent in the particular car warranty contract.

Manufacturer’s Warranty:

Every vehicle manufacturer in the United States offers some form of car warranty to the consumer base, though the specifics, meaning the period that the warranty is active and what the car warranty covers, will vary based on automobile and manufacturer. Some car warranties will cover virtually anything aligned with the automobile for ten or more years, while other types of car warranties will only cover catastrophic breakdowns or failures of the transmission, the engine, or other major components of the vehicle.

In addition to the seller of the automobile and the manufacturer, insurance companies may also provide types of car warranties. This form of aftermarket car warranty can be purchased on both used and new cars and may last longer or cover components that were not mentioned in the original warranty.

For instance, a common manufacturer’s car warranty will not cover parts or items of the car that are susceptible to wear, such as brakes or drive belts. That being said, an insurance company who offers a car warranty may provide coverage for these parts and their subsequent repairs.

Car Warranties for Used Cars:

While the typical manufacturer’s warranty will transfer over when a vehicle is resold to a second owner, many used cars are re-sold with an expired car warranty. In these prevalent matters, an aftermarket car warranty may protect the second purchaser from facing expensive repairs. As a result, it is always a prudent move to have a used car inspected before you purchase it.

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