Archive for May, 2009
Car Warranties – Know the Difference!
The warranty battle is on! Many manufacturers are engaged in a battle for the best warranty. But here are some things to keep in mind when investigating the difference between new car warranties.
It’s good to know the difference between a new car warranty and an extended auto warranty. A typical new car warranty has two parts: the “bumper to bumper” warranty, which covers everything except the “wear” items such as brakes and tires; and the powertrain warranty that covers all the parts that make the car move, such as the engine and transmission.
An extended auto warranty can be purchased to prolong the coverage of the bumper-to-bumper warranty. Most people are familiar with the extended warranty that is sold at dealerships. There are also “third-party” warranties which can save consumers money but are generally less convenient to use. Many third-party warranties require out-of-pocket payment for repairs before reimbursement. Weigh all these factors carefully before you make your choice.
