Automotive Extended Warranty Companies
In this post, we will be discussing everything there is to know about car dealer warranties. We have gathered relevant data and have constructed this piece to help car buyers understand the difference between a dealership warranty and manufacturer's warranty, to know what is and what is not covered, and to make informed decisions when purchasing a car.
Car Dealer Warranty Image
When you buy a car from a dealership, you are usually offered a warranty to come with the vehicle. This warranty, also known as a dealer warranty, is typically more comprehensive than the manufacturer's warranty, which is why some buyers prefer it. Let's take a look at the image below for more insights about dealer warranties.
What is a Dealer Warranty?
A dealer warranty, as previously mentioned, is more comprehensive than a manufacturer's warranty because it covers more parts and components of the vehicle. Typically, a dealer warranty can include coverage for the engine, transmission, braking system, electrical, and other parts. It can also cover towing expenses and rental car coverage if the vehicle breaks down while under warranty.
Generally, dealer warranties are optional, meaning you can accept or decline their offer. However, it's important to note that the price of the car may increase if you choose to accept the warranty.
What is Not Covered by a Dealer Warranty?
Now that we know what is covered by dealer warranties let's take a look at what is not covered. Usually, wear and tear components are not covered in car dealer warranties. These components may include brake pads, tires, wiper blades, and other items that need to be routinely maintained or replaced.
You also have to watch out for warranties that have specific exclusionary language. It's best to read the fine print to see what exactly the dealer warranty covers and what they exclude.
Tips for Choosing a Dealer Warranty
When choosing a dealer warranty, it's important to keep the following tips in mind:
- Research the dealership's reputation
- Check the warranty's coverage carefully
- Ask the dealer about the warranty's deductible and cancellation policy
- Ask the dealer for a copy of the warranty terms and conditions
- Know what options you have for financing the warranty
How to Make a Claim against Your Dealer Warranty
If the time comes and you need to use your dealer warranty, follow these steps to ensure that you make a successful claim:
- Read the terms and conditions of your warranty before filing a claim
- Notify the dealer warranty administrator immediately when a problem arises
- Take your vehicle to an authorized dealer or repair facility
- Provide any necessary paperwork or documentation, such as receipts and repair orders
- Pay any required deductibles or fees
Frequently Asked Questions about Dealer Warranties
Q: Can I cancel my dealer warranty?
A: Yes, you can cancel your dealer warranty, but there may be a penalty for doing so. The amount of the penalty will depend on several factors, such as how long you have owned the car and the terms of the warranty.
Q: Can I transfer my dealer warranty to someone else?
A: Yes, in most cases, you can transfer your dealer warranty to someone else. However, you will need to check the terms and conditions of your warranty to ensure that it is transferable.
Q: What happens if the dealership goes out of business?
A: If the dealership goes out of business, you may still be able to use your dealer warranty. You will need to check the terms and conditions of your warranty to determine if there are any conditions or limitations.
Q: Can I buy a dealer warranty for a used car?
A: Yes, you can buy a dealer warranty for a used car. The terms and conditions of the warranty will vary depending on the age and condition of the car, so it's important to read the fine print.
Q: How long does a dealer warranty last?
A: The length of a dealer warranty will vary depending on the dealership and the terms and conditions of the warranty. Typically, dealer warranties can range from 90 days to 3 years or more.