One of the greatest advantages of a new car purchase is the warranties offered by today's major manufacturers.
Most manufacturers offer extensive bumper-to-bumper programs, ensuring peace of mind and sometimes-significant cost savings for consumers.
An example - recently, a Vancouver man made the news when the engine on his second-hand 2011 Kia Optima seized. Though the manufacturer's warranty was valid until 2017, Kia refused to pay for any repairs. The reason? The car in question was missing a couple oil changes on its service record, long before the current owner had bought the vehicle.
It's important to ensure that if you are purchasing a used vehicle, that you either are aware of the complete service record or purchase your car from a reputable used car location.
A spotty service record isn't the only thing that can cause issues. Using unapproved lubricants, doing your own modifications and getting work done at an unauthorized garage can all void your vehicle's warranty. To make sure you get exactly what you invested in, it's important to know about the specific warranties that cover your car.
All new vehicles come with a manufacturer warranty. These policies usually last between three and five years and often include a mileage cap. To offer a few examples, Kia, Hyundai and Mitsubishi all have basic vehicle warranties lasting up to five years or 100,000 kilometres, while Mazda offers a three-year new vehicle warranty with unlimited mileage.
Car companies usually have different warranties for different parts of the vehicle. You should easily be able to find this information on the manufacturer's website. Many manufacturers and third-party insurance providers also offer extended warranties with similar coverage, which take over once the initial time or mileage limit is reached.
If all the conditions are met, manufacturer and extended warranties can often transfer between owners, so keep this in mind if you own or are looking to own a used vehicle.
Used cars sold by franchised dealers typically have manufacturer-backed warranties as well. Other used car dealerships offer a warranty of their own as part of the price, or with an added fee.
With any warranty, it's important to know what's covered and what isn't. Certain parts that are usually excluded include: audio equipment, brakes, clutch, glass, and headlights.
One common clause is that cars must have regular servicing, as laid out by the provider of the warranty. This servicing must be performed by an authorized shop and properly recorded. Another common term is that damage or repairs that come from not using approved fuel, lubricants and parts won't be covered.
There are many other potential requirements that could be included in the warranty. The only way to be completely confident that your new or used vehicle is covered - and stays that way - is to thoroughly read the terms and conditions.
Of course, the best warranty is the one you never have to use, but if you're having trouble deciphering your new vehicle's warranty, or wondering what exactly you need to do to keep your warranty valid, our New Car Dealers would be happy to help!
Blair Qualey is president and CEO of the New Car Dealers Association of B.C. You can email him at [email protected].
