Car Warranty Information

When you buy a new car you are going to expect to get a decent manufacturer's warranty on the vehicle which can help protect you from the unexpected repairs that may come up for whatever reason. Most new car warranties on the market today come in the 3 year variety, but some manufacturers show such confidence in their workmanship or vehicle quality that they offer four, five or even six year warranties on their new automobiles.

While all automakers who sell cars in the United States offer warranties on their new vehicles, not all warranties are built alike. Generally they will all cover damage to the engine or the vehicle's transmission, but will not cover ordinary maintenance or repair such as the need for a regular oil change. Certain conditions can nullify the validity of a warranty as well such as if you don't get your oil changed and your engine freezes up on you.

It is important to know the details of your new car warranty when you are buying your vehicle since they are offered in such different lengths and on different terms. Some auto manufacturers have even taken to adding job protection to their warranties lately, which is a feature that will continue to pay for the car in the event you are voluntarily separated from your job. Again, restrictions will apply so be sure to ask your salesperson about the fine print before you sign or better yet, read it for yourself.

Extended Warranties

Most car dealerships will try to sell - especially to buyers of used autos - the extended warranty to cover a vehicle - usually in the same types of ways as a manufacturer's warranty. The extended warranty has been hailed as a lifesaver by some, but many financial experts consider them to be a complete waste of money because of their high cost and the low likelihood you have of ever recouping in repairs how much you paid into the policy. For this reason, the recommendation is to forego buying the extended warranty and rolling it in your car payment (thereby having to pay interest on it as well), which may cost you $50 per month and instead pay yourself that amount of money.

If you take $50 per month and put it in a bank account, by the end of the year you will have $600. After three years (the length of most warranties), you will have $1,800, which is enough money to pay for most standard car repairs. The only place (and it is uncommon) where you are likely to find yourself on the losing end of this thinking is if the major components of a car fail on you such as the engine or transmission, both of which can cost upwards of $3,000 or more to repair.