Importance of Warranty in Cars

Posted Monday, Aug 14, 2023

Buying a car is one of the biggest investments you will make, and you want to be sure you take all the steps to protect your assets, so it lasts as long as you need it. One of the most effective ways to give yourself peace of mind and security is with a warranty.

A warranty is a guarantee from the manufacturer or seller that assures the buyer that the product they purchased will function as it is meant to for a specified period. In the context of automobiles, a car warranty also covers the repair or replacement of certain components or systems in the vehicle for a certain time frame or up to a predetermined mileage.

The importance of warranties in cars cannot be overstated. Not only does it safeguard your financial interests as the buyer, but it also sets the foundation of a trustworthy relationship between you and the car dealer. This article will delve into car warranties and highlight their importance when buying a new or used car.

What Is in a Warranty for a Car?

A car warranty is a legal contract between you and the car dealer outlining all the coverage terms and conditions for certain repairs and services. While the specifics usually vary on the dealership, a typical car warranty generally includes the following key points:

• A coverage period that specifies the duration of the warranty is valid. It may be expressed in terms of time, such as 3 years, or mileage, such as 36,000 miles. Some warranties may have different coverage periods for different components of the vehicle.
• The components covered typically include the engine, transmission, drivetrain, electrical systems, emissions components, and more.
• Exclusions, i.e., the components not covered. These are generally worn-out items such as brake pads and tires, damaged by accidents, unauthorized modifications, and improper maintenance.
• Transferable clauses that frame out how the warranty can be transferred to subsequent owners. Note some warranties may be non-transferable and apply only to the original buyer. Transferable warranties can increase the resale value of the vehicle.
• Repairs and labor information that specifies whether the warranty covers the cost of parts only, labor only, or both. It also indicates where repairs can be made, usually at authorized dealerships or certified repair facilities.
• Deductibles. In some cases, warranties may have deductibles, meaning that, as the owner, you will be responsible for paying some of the repair costs.
• Maintenance requirements. Some warranties may also include a specific maintenance schedule for the warranty to be valid. If the schedule is not followed, the warranty may become void.
• Procedures for making claims are also included in the warranty document, so you know how to contact the dealership or manufacturer and what documentation will be needed for the claim process.
• Emergency repair information may also be included in the warranty. This information will tell you where to get your car repaired in case you are unable to reach one of the usual service locations.

Benefits of a Car Warranty

Given how detailed this legal document is, it is no surprise that a car warranty has several benefits, as explained below.

Provides financial protection

Car repairs are expensive as are, and an unexpected breakdown can be a serious strain on your budget. With a comprehensive car warranty, you can shield yourself from bearing the entire financial burden of repairs. Depending on the type of warranty, it may cover parts and labor costs, ensuring that the car owner doesn't have to incur hefty expenses.

Incentivizes quality

When automakers must provide a warranty, they are incentivized to manufacture high-quality vehicles. The stronger the warranty program, the keener the manufacturers are in making and testing the durability of their car and its components. At the end of the day, you benefit from a better-built car.

More timely maintenance

While it may seem like warranties with regular maintenance schedules are too strict, they are quite the opposite. This schedule ensures prompt servicing and care for your car, which prolongs its lifespan and prevents any major issues from arising.

Provides coverage for new technology

Modern cars now come equipped with sophisticated technology and electronics, which can be expensive to fix without warranty protection. With a comprehensive warranty, you are covered from paying for these repairs for another layer of security.

Gives you a better resale value

A car with an active warranty tends to have a higher resale value compared to a similar vehicle without a warranty. As the warranty is seen as an added benefit, you can get a higher price when you decide to sell your car.

May provide extended coverage options

Some car dealers may even offer warranty plans that go beyond the standard warranty period. These extended warranties can cover the vehicle for an extended duration or higher mileage, further securing the investment and increasing the car's resale value.

Builds reliability and trust

A car warranty is a testament to the dealer’s confidence in the quality of their product. By offering a warranty, you know they stand behind the durability and reliability of the vehicle. This is just as good for you as it is for the company. You are more likely to be a repeat customer and recommend it to others, helping the dealership attract more customers.

Always Check for the Warranty!

The importance of a warranty for cars cannot be underestimated. This comprehensive legal document offers more than just financial protection. It gives you peace of mind. You can drive without constant worry about potential mechanical failures or system malfunctions. This assurance allows them to enjoy their driving experience, knowing that they have the support of your car dealer if anything goes wrong.

If you are looking to buy a used car in West Point and the greater Golden Triangle area with a solid warranty, come to Auto Dash. We make sure our customers enjoy hassle-free, no-obligations shopping with financing options.

Visit our website or contact us today to learn how to drive away in the perfect car.