The Purpose Of Warranty On Used Auto Purchase
One important aspect which is required to be considered while you purchase any high valued asset is the warranty. Same principal applies with auto industry. When you purchase a new vehicle should be careful to demand for car warranty certificate. If any parts get damaged or break, you can get it repaired for free if you have warranty.
You can use this facility within a warranty period only. Warranty is provided when you purchase a new car. This facility is not provided if you purchase used auto car. Aftermarket warranties are offered only for selected auto cars and vary widely in prices, terms and conditions depending upon the various factors.
Purpose of WarrantyThe purpose of the warranty is to protect the car owner against the repairing overheads in case of car’s malfunction. Used car too provides warranty for specific automobiles and offer repairs free in return for the purchase of insurance policies. The company that provides the warranty is gambling that the price of warranty will be more than the cost of repair. Used-car warranties are the extended warranties and are subject to the considerations by the offering companies those are the guarantors.
Time FrameExtended warranties have short durations. Used car dealers offer 30-day warranty period or 1000 mile warranty against the breakdowns and provide 100 percent of repairing expenses. The cost of warranty is usually included in price. Third party extended warranties are more common where they offer 1 to 2 year warranty period depending upon the age and mileage of the car. More the miles on the odometer, the shorter warranty duration.
Warranty FeaturesRepairing options varies in various warranties. New car warranties have two varieties: Bumper to bumper and power train whereas extended warranties consist only power train type warranties. Bumper to bumper warranties are rare and expensive.
Sometimes breaks, steering, heater, etc are not covered under standard power-train extended warranties. Power-train warranties covers engine and transmission. Extended warranties sometimes offer replacement for mechanical breakdowns.
Importance of WarrantyExtended warranties are proved to be significant investments. Some guarantors require 50 percent of labor cost or parts. The guarantor may also require a deductible to the mitigate his costs.
CautionAll extended warranties are not equal. The proof of value of warranty is given in the terms and conditions. Low-cost warranties cover only parts those break due to mechanical failure and cover 50 percent of cost of labor and cost of parts. Read the terms and conditions very carefully.
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