Auto Warranty Facts, Myths and Realities

Automotive warranties have become so confusing that you may need a lawyer present before you sign on the dotted line. Unfortunately for the car buyer we may not know exactly what will be covered under warranty until after the failure occurs which is where the paper battles will begin.

No matter which car or what warranty issue is on the table, a car owner's best recourse in all cases is to maintain exceptional documentation. Also, you should know who the dealership is and you should do the same thing in case there is ever a question or discrepancy on your maintenance of the vehicle in question.

My personal experience with new car warranties has been less than pleasurable and as a result I have become extremely wary of any and all warranty claims. We bought a new Jeep in 1997 and it had some issues which the dealership did not feel were a problem, one was serious enough that I ended up repairing it myself, then later we received a Technical Service Bulletin that addressed the exact issue we had fought with the dealership over. The second item was very similar and after weeks of going back and forth I finally convinced the service manager to side with us and it was repaired correctly that week.

There are three people standing between you and acceptance of a warranty claim, the service manager, the warranty clerk, and the factory representative who deals with warranty issues for a specific region. Your case needs to be well documented so that they have no loopholes to use in order to dodge paying for warranty coverage when it is required.

It is easy to understand that there is no profit in offering a warranty coverage plan that pays out more than it takes in, therefore it can be a struggle to prove your case when a major warranty issue arises. If you are responsible for accidentally causing damage to a major part of your car it is not reasonable to expect the dealership to cover said damage, so in all fairness it is up to both parties to play fair and try to make the reliable operation of your car the top priority.

When I am faced with a major purchasing decision like which car would be the best one to purchase, my first pass is to go over each and every detail of a specific warranty offer, and will make a list of the pros and cons of each manufacturers warranty. If your salesperson is not completely familiar with the warranty process then have him introduce you to the warranty clerk, and to the service manager. You can also learn quite a bit from talking with the mechanics who work on your cars, but bear in mind, they are going to be fairly impartial when it comes to warranty coverage. Their job is to diagnose and repair problems, trying to find the root cause, and reporting all of this information to the service manager who then works with their warranty clerk and factory representative to determine the warranty implications of a specific repair.

One thing to note, if there is a technical service bulletin on a certain repair item on your car, even after you have paid to have it repaired, it is possible you could be reimbursed for parts and labor if you have kept good records.

Factory warranty flavors are "basic" and "bumper to bumper" basic factory warranty is the primary one made for your drive train warranty. Bumper to bumper does not really cover everything in between, and it is your responsibility to ask for and study the warranty documentation before you sign on the dotted line. Drive train warranty covers your major drive components internally like your engine, transmission, axles and wheel bearings. While it does not cover brakes, belts, hoses, and other items that are attached to the engine and transmission.

Your factory warranty begins the day of delivery to new owner, not the date of manufacture as some people have been led to believe. There are specific state laws in place in all 50 US states which clearly define this particular issue. A document called the Uniform Commercial Code has been adopted in one form or another by all 50 states, and this essentially is the backbone of those laws in each state which governs the sales of movable goods, and as part of this code there are specific rules on the administration of warranty on said goods. One of these is the lemon law which helps owners who have a true lemon of a car on their hands. Do not be afraid to research this lemon law as it relates to your car and any warranty claims you may be experiencing.

What many people do not seem to realize is that any warranty offering is essentially an insurance policy which has the factory and dealerships betting against you in regards to whether or not your car will break down. As all mechanical things eventually will, it is inevitable that our cars will stop working properly at some point in time, and with a warranty the consumer has a chance to get their car serviced basically for free. Of course there are many restrictions and the dealership and factory are not always ecstatic when it comes to them having to spend money to fix a warranty issue. This is why there may be times when your coverage is denied because of some small technicality. for example, if your engine throws a rod, and you do not have proof that the oil and filter were changed within the time frame specified in your owners manual then there is a strong chance that your repairs would not be covered by your warranty.

New car warranties are fairly well inclusive with only normal wear and tear parts being excluded from warranty consideration, this is including any labor for doing the work which the dealer feels is outside the scope of the warranty contract. At this time it would be your responsibility to prove to the dealership that the maintenance had been done regularly. How do you do this? get a notebook that can stay with the car and put an entry in there every time you either have some work done or when you do something yourself. Make sure you keep any receipts as they can be the basis of your proof of having performed the maintenance.

One of the biggest myths around a standard factory warranty is that the coverage is all inclusive when in reality it is far from that when it comes down to exactly what items are covered. as would be typical in the preparation for any major purchase you must take the time to read the very fine print. the reality of it all is that there is always a possibility that a warranty claim can be interpreted differently than what you believe to be the case.

Look at it this way, there are usually three major parties involved in any warranty transaction, the car owner, the dealership, and the factory. In effect it is two against one and the fact is the dealer and factory are not interested in putting money into some repairs that they may feel should be the owners responsibility. If you have any problems with your car and it is due to no fault of yours then there is very little reason a warranty would not be honored, however if you have modified the vehicle, or if you have neglected the vehicle, then there is a strong chance that your warranty claim will be denied, and all cost will be paid for by you the owner of the car.

The dealerships repair shops are not trying to rip anyone off, but it is their job to use due diligence to ascertain the validity of any and all warranty claims. They are not going to stay in business very long if all they do is give parts and service away for free. If there is a serious problem with your car, rest assured it is in the best interest of the dealership and the factory to have it repaired correctly and under warranty if that coverage applies. First issue would be potential for a lawsuit, and second would be a possible blemish on their good service reputation.

Depending upon the manufacturer your factory warranty can be 3 years and 36,000 miles up to five and fifty, but typical factory warranties are the three year and thirty six thousand mile version. Making sure your documentation is in order and that you have done all of the essential maintenance per your owners manual is one of the most important things you can do to protect yourself in any warranty claim situation.

One of the better results to come from longer term factory warranties would be that the manufacturer is putting more emphasis on building a car that will be trouble free through the warranty period. This is to their advantage as much as it is to the owners as well. So this becomes a win win situation and overall the true cost of ownership should be lower for new cars.

Final thoughts on warranties would be to make every effort to understand the terms of your warranty before you sign on the dotted line. Be nosy and hang around the service area of your cars dealership, talk with other owners of the same vehicle to see what their warranty experience has been like. Most of all be sure to become a knowledgeable consumer and learn all about the warranty options before you say yes.

Thank you for reading my articles here on AC-Yahoo!