All vehicles on the road are entitled to a warranty service as per US law. Warranty refers to repair and maintenance service offered by the auto dealer in association with a third party vendors. This warranty will be in existence for at least two years from the date of the car’s sale. However, it can be extended depending on the convenience of the car owner. In auto warranty, there are two categories. The first category is called new car warranty, issued to brand new cars. The second category is called aftermarket auto warranty, issued to second hand cars or pre-owned cars.
It is mandatory for all dealers to issue aftermarket auto warranty at the time of handing over the vehicle to the buyers. Watch out for fraudulent auto warranty. In some states of the US, law has been evolved to protect car owners against fraudulent aftermarket auto warranty. It is called lemon law. Review at least five aftermarket auto warranties before finalizing the service provider.

The aftermarket auto warranty covers repair and maintenance of drive train, power train, brake mechanism, engine and steering system. However, it does not cover the replacement of expensive spare parts. The warranty is offered on the basis of time and distance covered by the vehicle.

Buying an aftermarket auto warranty is not as happy-go-lucky as some people make it sound.  You need to pay careful attention to certain facts about the service contract when shopping around so that you do not end up with a service contract that would only serve to embezzle your hard earned money from your bank accounts.

The first thing you need to determine is the length of validity on the prospective aftermarket auto warranty (also consider the mileage features).  If the warranty covers the same period or mileage as your existing warranty, then look again – this is not the one you want. 

Secondly, an aftermarket auto warranty should provide you with coverage that your existing warranty does not have – it definitely does not make sense to spend more money for the same coverage that you already have; it absolutely does not help.

Finally, make sure that the aftermarket auto warranty that you are interested in is backed by a financially sound party, and ensure also that former claims made against this party have been paid in full and on a timely manner to those it may concern.  You would not want to buy a warranty from a party that does not pay.

If you have recently bought a used car and it has only now occurred to you to find out whether or not you got a used car warranty with the car, one of the first places to check is the buyer’s guide that you would have received with the purchase.  In some states, the buyer’s guide must be issued for every used car to be sold, but this may not always be the case.  Therefore if you did not receive a buyer’s guide, then the next best option is to consider the purchase agreement. 

Most used cars, even when sold without an official used car warranty from the dealer, are still liable for defects found after the purchase by the person who sold the car.  However, if you purchased a used car that clearly stated ‘as is’ in the purchase agreement, then you would have forfeited all rights to hold the dealer accountable for any problems you find after the finalization of the purchase agreement.  Whether unwittingly or not, you automatically agreed to accept the car is it was upon purchase, thereby also accepting that you hold liability for any repairs which you may deem necessary from that point onwards. 

In many states the provision of a new car warranty with any new car purchase is the law, a lot of prospective new car buyers pay little or no attention to the new car warranty during the purchasing transactions.  They take it for granted that they have received a new car warranty, and even more dangerous, they simply assume that this means that all repairs or part replacements on the car is covered as part of the warranty.

Far from the case, the new car warranty can only benefit the new car owner who understands the new car warranty and how to use it.  It is simply not a ‘go free’ card that is meant to cover the cost of all your repairs for as long as the warranty says it’s valid.  On the other hand, the new car warranty usually comprises of several sections, all with stipulations and guidelines regarding what you are and are not entitled to as the holder of this warranty.  The warranty may, for example, state that its coverage is for a total of five years, and you may well assume you are covered for all of this period.  However, on closer examination, you will find that the basic coverage may only have been valid for three years – the other two would be engine coverage alone. 

The aftermarket auto warranty is really useful to all vehicle owners, but most especially to the used car owner.  This is because he (or she) is the one who is caught off guard most times especially when they have just purchased a vehicle only to find that they did not receive or even enquire about the used car warranty.  Sometimes used car drivers are caught by surprise by the used car ‘as-is’ agreement, which clearly means that the prospective owner agrees to buy the car as it is with no liability or further responsibility being allotted to the former owner (or dealer) upon final transaction.

Having been caught in such a trap, you would indeed be at a loss for directions regarding how you should proceed.  You could buy a warranty to provide you with coverage for a specified period of time.  This warranty should be able to benefit you both in the short and long runs because most certainly your used car will need constant maintenance – which you would have to stand on your own without any warranty support.  The warranty that you would then buy is the aftermarket auto warranty, for it is the only warranty that can be purchased for a vehicle from independent dealers.

It is important when purchasing a used vehicle to ensure that you receive a used car warranty law, even if the used vehicle still has a valid manufacturer’s warranty. The manufacturer’s warranty is indeed beneficial to the holder in times that his vehicle may need repairs or part replacements, as long as it is still valid. But in instances of more serious car problems, it is the present dealer of the car who bears the accountability, having taking the responsibility to sell it as such.

If, for example, you have noticed problems with your recently purchased used vehicle that were not pointed out to you before the purchase by the person selling the car, then that person (who has sold you the car) must take liability for such. You could be entitled to the free repair, or if you so chose, you could opt for a full refund or replacement vehicle. On the other hand, if you did not receive a warranty, the dealer may be able to say that you were informed of these problems before the purchase and that you bear all responsibility as such seeing as you went ahead of the purchase anyhow.

Typically, the used car warranty comprises of more than one type of warranty coverage, all of which are issued or generated by the manufacturer of the vehicle or by an independent dealer with authorization from the car manufacturer.

One of the primary coverage type provided by all new car warranties is the basic coverage warranty.  This warranty covers every part of the vehicle except those parts of the new vehicle which are subject to regular wear and tear damages associated with common or daily use of the vehicle.  Note that some basic warranties may be more basic than others, so that not really all parts which are assumed to be covered under this provision are really covered.  For your own gain, it is important that you read the buyer’s guide carefully upon purchasing the vehicle to ensure that these points are clear in your own mind’s eye.

Another popular warranty coverage included within the new car warranty is the drive train warranty, also known as the power train warranty.  It is simply described as that which provides coverage for all the parts of the vehicle which are responsible for its motion (includes engine and axles, for instance).  Clear differentiations however are also made as it relates to this coverage since wear and tear damages are not covered.

Purchasing the aftermarket auto warranty is an important decision that any vehicle owner must make.  He must consider if the decision is a worthwhile one or not, if his coverage would really be extended in any beneficial way beyond an existing warranty, or even if he would stand to benefit from increased mileage coverage.  Additionally, the vehicle owner must consider if he would stand to benefit in the long run from the aftermarket auto warranty, or if he would lose from the investment – in the least, he must strive to break even with his investment.

When purchasing the aftermarket auto warranty therefore, the vehicle owner must consider among others what would be his deductible for any claim that he or she makes.  Some warranties charge a deductible per visit, while others charge per repair.  It would be most unwise to invest in a warranty with a deductible that charges you for every single repair that you do even if all in one visit.  On the other hand, you should also consider the type of coverage that you are getting – would you have to stand the cost of the repair or visit and be reimbursed after, or would you have to get approval from your warranty provider that they will cover the repairs on spot?

Unlike the new vehicle warranty, the used car warranty is often one that goes unnoticed or overlooked by many.  The importance generally associated with the new warranty is not mirrored in any bit by that of the new car warranty, but oddly it is the used car warranty which draws the most attention at the end of the day.

The used car warranty, for example, is that which would aid the owner of the used vehicle to stand repair and maintenance costs for his used vehicle where he would have had to otherwise pay out of his own wallet.  While agreeably the new car warranty does the same, it is undoubtedly the used car that finds its way to the repair shop more often than not.  Think then of the amount of money that the used car owner would have had to spend over time for each of these visits, for each of these repairs, or for each of these services if he had not had the assistance that the used car warranty provides.  With the used car warranty, the vehicle owner has the preference that his warranty coverage should cover his repairs so long as the warranty is still valid and the repair in question is covered under the warranty.

The new car warranty is meant to provide the owner of the new car with an assurance, so to speak, from the vehicle manufacturer that his new vehicle is of the advertised quality.  Once the new owner takes the vehicle home and finds that it does not function as the manufacturer said it would, then he would be fully entitled to either have the manufacturer (or dealer) repair or replace the cause of the problem at no cost to himself, or he could opt to have his vehicle replaced with another.

Without the new car warranty, the manufacturer would in no way be responsible nor would he be held liable for anything that goes wrong with the car after its purchase.  It is very rarely the case however that a manufacturer would issue a vehicle without the new car warranty, for this is also the manufacturer’s way of assuring the public of the best quality vehicles that they produce, and by extension it is his way of marketing either his name or the vehicle type in question.  For the very reason also, most manufacturers pay careful attention to honoring the claims made by clients – so long as it is with reason.