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What is a car warranty and do I need one?

Mar 26, 2022
thumbs up out of car window driving

A car warranty is a contract where the provider (usually the dealership or manufacturer) has agreed to fix any broken parts or defects that are discovered during the time period or mileage specified by the warranty. Factory car warranties do not cover accidents or normal wear and tear. Some extended warranties may cover certain types of wear and tear.


Types of Car Warranties


Manufacturer’s Warranty: It is standard for a new vehicle to have a manufacturer’s warranty. This typically covers the car for three years or 30,0000 miles–whichever comes first. The manufacturer’s warranty guarantees that the vehicle is in proper working condition. It is designed to cover the cost of repairs or replacements if/when the vehicle experiences a malfunction or breakdown due to its design or OEM components.


There are two types of manufacturer’s warranties:


  • Powertrain warranties: This type of warranty covers damages to the car’s propulsion system. (This includes the engine, transmission, and driveshaft.)
  • Bumper-to-bumper warranties: This warranty covers all parts between the two bumpers except for the areas that receive constant wear and tear such as the seats, glass and tires.


Many pre-owned vehicles sold by Direct Car Buying are still covered by their manufacturer warranties.

  

Extended Warranty: There are also extended warranties that can be purchased independently. Extended warranties usually come with a deductible that must be paid before it begins covering repair costs. You may be able to have both warranties at once. However, the extended warranty doesn’t usually go into effect until the manufacturer’s warranty has expired.


There are two types of extended warranties:


  • Original equipment manufacturers (OEM): This is issued by the original manufacturer and covers the original components.
  • Aftermarket warranties: These are sold by car warranty companies and/or other third parties. It can be placed on your vehicle any time after the vehicle has been purchased.


How Do Vehicle Warranties Work?


If you experience a breakdown or mechanical problem while covered by the warranty, take your vehicle to a licensed repair shop. Some warranties require you to visit select repair centers.


Once the mechanic determines the problem, they will contact the service contract administrator. As soon as repairs are authorized, the repair shop can begin service. In some instances, an adjuster may be required to come out and assess the repairs before service is approved.


What Does a 3-Year 36,000-Mile Warranty Entail?


A “3-year/36,000-mile warranty” covers your vehicle for up to three years from the date of purchase or until the vehicle has been driven 36,000 miles. It is dependent on whichever comes first. Some manufactures offer longer 5-year/60,000-mile warranties.


Are Car Batteries Covered by Warranties?


A car battery tends to fall under “normal wear and tear” and is not normally covered by most extended warranties. However, manufacturer warranties can vary on this. If it is the original OEM battery and the vehicle is within the frame of the manufacturer’s warranty terms, the battery may be under warranty. Double-check the warranty terms or contact the warranty provider before you purchase a new battery yourself.


What Do Car Warranties Exclude?


Exclusions tend to vary depending on the provider. These are typically excluded from most car warranties:


  • Tires and wheels (Including tire rotations)
  • Interior seats, trim and seat belts
  • Windshield glass and wiper blades
  • Brake pads and shock absorbers
  • Oil changes
  • Paint damage
  • Damage from collisions, misuse or abuse


Are Car Warranties Worth It for Car Buyers in Washington DC and Baltimore?


A car warranty is beneficial if a costly issue arises. It tends to be better to have it and not need it than need it and not have it.

 

Deciding on a car warranty can be confusing, especially when considering multiple options or pairing your extended warranty with GAP Insurance.


You don’t have to be alone in the car buying process. At Direct Car Buying (powered by Easterns Automotive Group) we not only offer certified vehicles, but we also offer some of the best additional coverage packages available.


Our team is available to answer any questions or concerns you may have regarding which car warranty is best for a pre-owned vehicle.


As always, you can be confident in your choice because every car sold at Easterns comes with a 7-Day Return Policy and a complementary 30 Day/1,000-Mile Warranty. Click here for more detailed information about car warranties and/or GAP insurance offered through Direct Car Buying, or call us at 877-927-6093. 


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