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US Aftermarket Group Files Suit Against California Air Resources Board Over Emissions Equipment Warranty Referendums

emm.jpgA group of state and national aftermarket associations filed a lawsuit versus the California Air Resources Board, aka-CARB that challenged their proposed regulations that requires vehicle manufacturers to extend auto warranties on emissions parts to 10 years and 120,000 miles which would keep replacements running through their dealer networks.

One of the plaintiffs, the Automotive Service Association aka-ASA, said the action by CARB to extend auto warranties for this extended term will cause massive economic damage to independent aftermarket auto warranty providers and service facilities in the California and is not likely to provide any clean air or consumer benefits.  Another plaintiff in the case, Automotive Service Councils of California, said because vehicle owners will not know whether a needed repair indicated by the malfunction indicator light is covered by the extended auto warranty, they will need to return to the dealer for almost all repairs. 

The lawsuit states that CARB provides no real evidence that extending emissions auto warranties will effectively motivate manufacturers to build a more durable emission system, or that it will motivate a driver to seek emissions-related repairs when they are indicated.

New Car Warranties Are A Prudent Investment

nc.jpgPurchasing a new vehicle can be very difficult decision.  Even the highest rated makes and models, occasionally disappointed a buyer.  Some of the most highly rated auto manufacturers simply cannot avoid an occasional manufacturer recall or production error.  Carefully consider the car’s reliability record by researching the vehicle’s customer satisfaction history.  It is rare that you can anticipate the precise reliability of an automobile, but doing some research on its history will give you the telltale signs of what to expect.  Internet sites like Edmunds and Kelley Blue Book accurately rate new and used vehicles and give you a good idea of what to expect.  This can also help you decide whether you should be considering new car warranties along with the vehicle purchase.  Even when they vehicle is very highly rated and has an excellent repair history a new car warranty is an excellent investment.

Buying new car warranties when purchasing a car or truck from a dealer protects the buyer from unforeseen repairs.  Most auto manufacturers offer extended auto warranties backed by the company though the pricing is usually quite high.  A much better deal can usually be found on and auto warranty by searching the Internet.  New vehicles are one of the largest investments a citizen can make and should always be protected by the right coverage.

Whether it be from a manufacturer or aftermarket auto warranty provider, don’t be caught in the lurch when your car breaks down and tries to eat away at your savings account.

An Extended Auto Warranty Should Be Worth More Than The Paper It Is Written On

frd.jpgA new car franchised dealer located in the southern United States has been found to be selling fraudulent extended auto warranties to its customers.  These accusations have been made by several customers when they attempted to use their auto warranty coverage, only to find out it was not valid for the repairs it described in their contract.  It turned out that there were many backdoor outs the dealership had given itself when preparing the contract forms.  These customers complained that the dealership would not on the coverage as written, leaving the consumers with repair bills they believed were covered.  It was later learned that several other customers that actually did get claims paid for work done at a variety of repair shops complained of a lengthy and difficult claims process.

Stories like these are precisely why any auto warranty offered by a dealer, or even an aftermarket auto warranty should provide clear terms and conditions understandable by a consumer.  You should not need a lawyer to interpret what is considered a covered breakdown and what is not.  Consumers should also be wary of any contract that does not clearly describe itself in the layman’s terms.

A quality extended auto warranty can save you hundreds or even thousands of dollars, but only if it is written in a way that allows it to be recognized by repair shops and dealerships nationwide.  It should also only be purchased from a company that has a solid reputation and is a member of the Better Business Bureau.  An investment in an extended auto warranty from an upstanding company should always mean that there will never be a question about whether your coverage is valid when it is needed.

Auto Warranties Add Value

car3.jpgIf you intend to sell your vehicle at some point you should consider purchasing on of the many used car warranties available to you.  Even if you are only considering a sale, automobile warranty can protect you while you still own the car and will add considerable value to the new owner. You will be able to drive your vehicle with the peace of mind that only an auto warranty can bring.  You should also realize that the buyer is likely to want the same comfort when driving the vehicle after the purchase.

In addition, you will increase the car’s value by adding the simple words “warranty coverage” in your ad.  

Consider purchasing an auto warranty for your new replacement vehicle as well.  Down the road the extended auto warranty will most likely save you big money on repair bills.  Remember, the auto warranty you purchase today will be an investment that will surely pay off for you in the future. 

Do You Want Unlimited Auto Warranty Repair Locations?

russ.jpgDoes your auto warranty restrict where you can go for your repairs?

Auto warranties come in many different shapes and sizes.  Some limit the locations where you can bring the vehicle for repairs under their coverage.  It’s safe to say that some consumers do not have a specific repair shop over a long period of time that they use but the most consistent customers probably go to a particular maintenance shop.  These contract holders are forced to find a new location that may not be comfortable or convenient for them.  An aftermarket auto warranty program that binds its contract holders to particular locations for auto repair can be quite a hassle on scheduling, travel distance, and the repair shop may not be as reputable as the local competition.

If you’re in the market for an automobile warranty that does not limit you on repair locations, be sure to read their fine print.  The bottom line is that you want to choose an auto warranty that allows you to pick you own repair shop.

Manufacturers Look To Control Auto Warranty Costs

tech.jpgA somewhat new IBM technology helps auto manufacturers cut warranty expenses which are an over $14 billion cost to them annually. IBM’s plan goes beyond “keyword” searches and collects and analyzes data from many different information sources like repair records and blogs. Automotive companies worldwide face stiff competition as well as a difficult marketplace. To help stimulate growth automakers, particularly from the


United States
have resorted to deep discounts to stay competitive. Obviously this takes a toll on the profit margins. To counterbalance downward trends of their profit margins, many automakers are looking at new ways to control costs. Auto warranty coverage is one of the quickest growing areas of operating costs in the industry. In 2004, some industry experts estimated that warranty costs could exceed $45 billion worldwide. In the


United States
, auto warranties account for nearly 41 percent of all auto warranties industry wide. For the first time, in 2004 the number of recalled vehicles exceeded the total number of manufactured vehicles. One of the causes behind rising warranty costs and claims is the ever increasing complexity of the vehicles being built. Almost 40 percent of the value in a vehicle is tied up in the car’s software.  A car could have as many as 70 different processors that control everything from anti-lock brakes, automatic transmissions, cruise control, and fuel injection systems.  Controlling the costs of warranties has enormous benefits. Warranty costs can drag down profits of the automobile industry by over 3 percent. Automakers could lower their warranty costs by half and they would see their profits soar over 300 percent.

Some Auto Warranties Have Loopholes

disco.jpgBack in the summer of 2007 one of my clients purchased a used Land Rover Discovery from a dealer. It came with a mechanical breakdown warranty issued by an aftermarket auto warranty company. On the date of purchase the car had 85,000 miles and 3,500 miles later it broke on the highway and had to get towed. The claim was called in to the company that issued the warranty in accordance with the contract terms. The vehicle was taken to a local dealer where the rear axle had to be broken down for inspection. The inspector advised that the damage was not a covered claim by the warranty because it was a wear & tear failure. The selling dealer insisted that the vehicle had no problems at the time of sale, so he could not be held liable for the cost of repairs. The repairs needed entailed replacing a seized rear differential following a bearing failure. The vehicle needed to get back on the road so the repairs were completed and the issue is now in small claims court.

 

The moral of the story is when purchasing an auto warranty for your used car be sure that the plan is of the highest caliber.  Read through the contract as some used car warranties leave much to be desired.

Choosing An Auto Warranty

stuck.jpgAt one time or another every vehicle owner has been stuck on the side of the road or highway with a vehicle that has broken down.  Faced with the fact that a large repair bill is imminently on the horizon this is not a happy time.  To avoid this helpless feeling some people choose own auto warranties to protect their pocketbooks.

There are many companies in the market that offers different types of warranties. Below auto warranty tips on what a person should keep in mind when buying new car warranties or used car warranties.

First, inquire about the coverage that a warranty company provides. Get information about the warranties available in the market as different type of warranties cover different replacement parts. Some companies offer online information on auto warranties so the buyer can purchase the right plan for their vehicle. Some different types of coverage available are bumper-to-bumper, component, and powertrain type coverage.

With so many car warranty companies out there some are not of the highest quality. Companies claim to cover many parts but once bought, they deny many claims. This is why a buyer must research the company they choose carefully.

Aftermarket Auto Warranty

The Aftermarket Auto Warranty is a program, which gives protection to your car. Buying of these aftermarket auto warranties is a tricky business. You need to consider many factors while choosing a right warranty.  

The main factor to be considered is the period of validity and coverage of the warranty. Having a longer period of coverage is what every body wants but this may cost higher than the normal warranties. So, you need to calculate that, for how many years your car needs a warranty. Coverage is the factor that, also influence a lot while choosing a warranty to buy a car. The customer has to go thorough the documents carefully and check what are the things covered in the warranty. Though, most of the warranties cover all the main parts of a car but incase you need to have warranty for custom work or for some costly components then you must have a complete knowledge of the things that are covered in the warranty.  

The most important thing while buying a warranty is the company or a person from whom you are buying the warranty. You have to make sure that you go through the pervious track record of that company to determine that whether they are reliable or not.

Life long warranty

An  Auto warranty is a service under which the car manufacturer promises to maintain and repair the car for free without charging any fee to the customer. Under US law, no product can be sold without a valid warranty. Any product, including cars, if sold without a warranty, amounts to breach of law. Therefore, at the time of purchasing the car, make sure the auto warranty is offered. There are three categories of auto warranty. They are new car warranty, used car warranty and lifelong warranty.
The new car warranty is given to brand new cars. The used car warranty is given to used cars or preowned cars. The used car warranty is also called as after-market auto warranty. When compared to the new car warranty, the price of the used car warranty is higher considering the age of the car and the risk of insuring it. The third category of the auto warranty, life long warranty, is essentially issued to luxury and high end cars. It is called as life long warranty since it covers the entire age of the car. It is also called as the bumper to bumper warranty since it takes care of the car end to end till it is scrapped.



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