An aftermarket warranty is warranty coverage purchased after the new car warranty provided by the manufacturer expires. Most new cars come with a warranty for mechanical systems. The purpose of a warranty is to provide assurances that the vehicle will not have any mechanical defects. Any defects or issues will be repaired at no cost to the purchaser as a warranty claim.
The length of the warranty varies by automobile manufacturer, but usually provides a specific length of time or mileage limitation. The details of the warranty list exactly what items are covered or included under this warranty. Consumable parts with a short life span, such as brake pads, brakes, and windshield wipers are not included. Long-term items like transmission, water pump are typically included.
Aftermarket warranty programs offer the same type of coverage for your vehicle. It is very important to consider three items when purchasing an aftermarket warranty: price, coverage level and service agreement. These items determine the true value of the warranty.
The purpose of a warranty is to provide peace of mind, for a monthly fee. If there are any mechanical problems with your vehicle, they are repaired at no charge by the warranty program. This avoids unexpected large repair bills. However, it is important to evaluate the actual costs of an aftermarket warranty.
Write down the total cost of the warranty and compare it to the estimated annual repair costs for the vehicle. Look at the hourly rate at your local garage and obtain an estimate repair cost for your vehicle for the next three to five years. Decide how long you plan to keep your vehicle and the estimated value of the vehicle. Read the fine print in the aftermarket warranty to determine exactly what items are included in the coverage. Check the details on the mileage requirements for each type of repair and determine if your vehicle will fit into the period.
Check the details of the service agreement and identify which auto repair garages are approved by the warranty. Determine if they are reputable, licensed garages or not. Ask for and check references from current and former clients to evaluate the quality of the service and the conflict resolution program. Aftermarket warranty programs can be quite expensive, depending on the make and model of your vehicle and the amount of coverage provided. Protect yourself by investigating these types of services with care.
