Car warranties are a standard feature when you purchase a new car. They are usually specified as lasting three years or 60 000 km, whichever comes first. This means that if you drive a lot, your warranty will expire before the period is finished. If you don’t drive a lot the warranty will finish before the mileage is reached. You can also purchase an extended warranty, lasting anywhere from four to ten years. It is advised to carefully consider activating an extended warranty, making sure that you understand the terms and conditions and compare the services offered to you with the cost of the warranty. Some warranty aspects are also covered in your insurance policy, so make sure that you are not paying double for the same services.

Types of Warranties

There are four types of warranties. Some warranties overlap and will have combined features of the different types.  Depending on the manufacturer the specific details of each warranty type will also differ. Make sure you ask the dealership to carefully explain the warranty to you, so that you understand the terms and conditions. If you violate these, your warranty will be cancelled.

• Basic: also known as “bumper-to-bumper coverage”
• Powertrain: covering all the parts involved in keeping the car in running condition
• Corrosion and rust: covering the car for rust that goes through unto the metal
• Roadside service: assistance with breakdowns

There’s always fine print

As with any contract, you need to pay careful attention to the fine print. For instance, a “bumper-to-bumper” coverage may sound like it is covering all aspects of the car, whatever breaks will be repaired, but there are certain exclusions that you should be aware of such as filter changes that won’t be included.

Stick to the rules

Another standard feature of contracts is that there are certain stipulations for the contract to remain valid. To ensure that your warranty is not voided, you need to stick to the maintenance rules. Your car will need to be serviced at specific mileage intervals and if you ignore these, your warranty will be cancelled. These are usually scheduled for every 5000km, but the first service might be scheduled sooner to check up on how your car is performing. Make sure that you confirm with the dealership what is needed from you to stay within the boundaries of your warranty.

Extended Warranties

When purchasing your new car, the salesperson will offer you an extension on your warranty. You will need to carefully investigate if this will be a viable option for you, comparing the cost of it to the benefits. For instance, roadside assistance services are usually included in your insurance policy, so it will be unnecessary to extend the warranty if you are already paying for the service via your insurance.

There is definitely merit in warranties, providing peace of mind to keep your vehicle in tiptop shape and offering assistance when something does go wrong.