Extended Warranty For Used Cars: What Does It Cover

**Extended Warranty For Used Cars: What Does It Cover?**

When purchasing a brand new car, buyers often find comfort in the manufacturer’s warranty, which can help cover repair costs down the line. However, for those buying a used car, the manufacturer’s warranty may already be expired or close to it. Thankfully, extending warranty coverage for a vehicle is a straightforward process. But what exactly does an extended warranty cover?

Before delving into this, it’s essential to understand the distinction between a manufacturer’s warranty and an extended warranty, as both can apply to the sale of a used car.

### **Manufacturer vs. Extended Warranty**

**Manufacturer Warranty:**
The manufacturer warranty, also known as the factory warranty, begins the day the vehicle is purchased brand new from the dealership. It protects against mechanical and electrical breakdowns and typically lasts for a specified period (usually three to five years) or a set mileage limit (typically 60,000km to 100,000 km). Importantly, the manufacturer warranty is transferable from one owner to the next.

**Extended Warranty:**
An extended warranty, also referred to as a service contract or agreement, helps cover repair costs after the manufacturer warranty has expired. Available separately, this optional protection plan can be purchased from the carmaker (OEM) or third-party providers (aftermarket). Like the manufacturer warranty, extended warranties are often transferable to the next owner, depending on the terms of the contract.

**Note:** Neither manufacturer nor extended warranties cover collisions due to driver error, vandalism, or natural disasters.

### **Coverage Under Manufacturer Warranty**

When buying a new car from the dealership, it typically comes with a new vehicle warranty. Here’s what this warranty usually covers:

– **New Vehicle Warranty (Comprehensive or Bumper-to-Bumper):** Covers the entire vehicle against electrical or mechanical problems, excluding some maintenance or wear items. This warranty typically lasts for three years or 60,000km from new.

– **Powertrain Warranty:** Covers major components necessary for the vehicle’s movement, such as the engine and transmission, usually for up to five years and 100,000 km.

– **Emissions Warranty:** Federal coverage for components directly affecting a car’s emissions.

### **Extended Warranty Coverage**

An extended warranty can be purchased for extra coverage when buying a used car with an existing manufacturer warranty or to replace an expired warranty. These warranties are available from the carmaker (OEM) or aftermarket providers and typically offer similar coverage options:

1. **Vehicle Repairs:** Covers unexpected vehicle failures, including labor and parts, with some exclusions.

2. **Roadside Assistance:** Covers towing costs and may include fuel or oil delivery and battery boost services.

3. **Rental Car Coverage:** Reimburses rental car expenses if your car needs overnight repairs.

4. **Tire & Rim Warranty:** Some plans include coverage for tire punctures, blowouts, and related rim damage.

### **Types of Extended Warranty Protection**

Extended warranties come in different tiers, offering varying levels of coverage and cost. Basic coverage may include:

– **Extended Powertrain Coverage:** Covers major components like the engine, transmission, and related parts.

– **Higher Deductible Policies:** Lower-cost plans with a higher deductible for reduced premiums.

### **Making a Claim**

To make a claim under your warranty, the issue must be diagnosed by an authorized repair facility. Always check with your warranty provider before seeking repairs outside the authorized network to avoid coverage issues.

### **Maintaining Warranty Validity**

Routine maintenance is crucial to keeping your warranty valid. Failure to follow manufacturer-recommended maintenance schedules may void warranty coverage for related issues.

### **Transferability**

Manufacturer warranties are transferable to subsequent owners until expiry. Extended warranties can often be transferred to new owners within a specified time frame.

### **Should You Purchase an Extended Warranty?**

While optional, extended warranties provide valuable protection for pre-owned cars, especially if the manufacturer warranty has expired. Adding the cost of an extended warranty to your financing can ease the financial burden of unexpected repairs.

At Car Approved Now, we uphold our promises of unbeatable value, customer respect, accessibility for all, and a legacy of trust. Our motto, “Yes You CAN,” embodies our commitment to empowering customers in their car buying journey. If you’re in the market for a new or used car, get pre-approved for a car loan today with Car Approved Now and enjoy a seamless car buying experience.