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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.

Choose An All Round Warranty


Auto warranty is given to the car owner by the manufacturer of the vehicle to maintain and repair the vehicle from the time of its purchase from the showroom. The auto dealer on behalf of the manufacturer of the vehicle makes a promise to the customers that if any real manufacturing default detected in the vehicle then that part will be replaced and the repairing cost as well as maintenance cost will be borne by the dealers.  The main motive to launch this service countrywide in US is to guard the interest of the customers.

When you select an auto warranty you are advised to choose a bumper to bumper warranty. It will give and ensure of the whole vehicle’s care and maintenance for the given time period. Apart from usual features in the warranty there are many extra features falls under all round warranty. The owner of the car is responsible for the maintenance of the power train, engine, drive train, and brake mechanism. If you keep it at one side, there are much more responsibilities borne up by the owners of the car. All round warranty is also known as comprehensive warranty; this warranty is quite expensive than other warranties.

Get A Used Car Warranty Along With A Old Vehicle Purchased


Some people cannot afford purchasing a brand new car. Old cars are not always in bad or unwanted condition. In fact, they look like new car and the papers of their warranty are still applicable. Many of the used cars are only some years old. If you are buying an old or a pre-owned car then you should ask for the warranty papers from the seller of the old car. These papers are very helpful in the time of problem or if something goes wrong with your car.
You should know some things prior purchasing the old car warranty papers. You must know about the terms and conditions mentioned in the used car warranty papers while purchasing the vehicle. Note down all the conditions and terms of the warranty when you are purchasing the used or pre-owned old car. Many people have this perception that used car warranty is of no use and not at all good. But this thinking is not fair. That is why many car dealers advise their customers to get the used car warranty along with the pre-owned car they are going to purchase.

Warranty Is Necessary For All Cars

Auto warranty is that service which is offered by the manufacturers of the product through the local auto dealers. Under this all the cost of the maintenance and repair is borne by the local auto dealers. Warranty is very necessary for your products to safeguard your interest and the value of your money. Under the law of the US, it has been mandatory that all the product dealers have to provide warranty on the cars or on any kind of product they are launching in the market for sale. But the expense of an accident damages are not covered under the warranty.

There are two sorts of warranty given to automobiles and they are: new car warranty as well as after-market auto warranty. After-market auto warranty is issued to those cars, which are old and used. After-market auto warranty is also known as used car warranty. New car warranty is given to only new cars. After-market auto warranty is very expensive than that of new car warranty taking into consideration the maturity of the vehicle. However in comparison the features of the after-market auto warranty are fewer in comparison to new car warranty. 

Keep An Eye On Fraudulent Warranty

Auto warranty is referred to as a repair and maintenance service offered by the dealers of the car in association with the manufacturers of car. Under the law of the US, all customers product including automobile has to be offered one or the other warranty. Usually, warranty period goes up to three or two years from its purchasing date from the showroom. This has been done to safeguard the customer’s interest as well as to offer them the importance of their money. Warranty is very important tool and is non-negotiable instrument.

Several fake warranties are also there in the market so customers are advised to keep their eye open for these while purchasing the warranty for the cars. They might be very attractive and pleasing from outside but actually they are fake ones, there are hardly any service provided by these fraudulent warranties. A fraudulent car warranty is a normal auto warranty, which consists of numerous features. But the features declared in the auto warranty are never delivered.  So it is advised to protect yourself from these types of fake warranties and consult any good auto warranty dealer whose reputation is good in the market.

Warranty For Your Vehicles


Warranty is referred to as a promise given to the customers by the local dealer of the vehicle in association with the manufacturer of the vehicle. This warranty is applied and valid from the date of the purchase of the vehicle. Under the warranty the dealer of the vehicle pays all the maintenance as well as the repair cost. If any genuine defect in the parts of the vehicle is found then the product dealer under the warranty period will instantly replace it. Many times the whole model can be changed and replaced if the defect is detected in the vehicle.

Under the law of the US, every product must be sold with the warranty. This is done to ensure the value of money to customers, and this also safeguards the right of consumer’s. Warranty for cars is also provided and it is known as auto warranty. Under warranty period all the repairing and maintenance costs is paid by the dealer of the vehicle. However, the dealers under the warranty do not repair the accessories and spares damaged in an accident. You should check the status of another party service prior purchasing an auto warranty.

Warranty For Your Automobiles

Auto warranty is the promise given to a car owner during the purchase to cover all the repair and maintenance costs as mentioned in the warranty agreement. The service and maintenance is provided by an auto dealer, which in turn is provided indirectly by the manufacturers of the vehicles. During this time period the repairs are carried out by the dealers. They cover the repair cost and maintenance costs as well as the cost of the replacement of spare parts. In some warranties the rates of the expensive replacement spare parts are not included under the warranty. In the same way, the replacement cost of spare items, accessories, as well as other damages and defects in accidents are not borne in the automobile warranty.
The dealer on various bases provides the warranty primarily on distance and time. For example, the auto warranty is valid up to 2 years from the time of its purchase by the customer. During this time period any fault or defect in the parts of the vehicle marked by the dealer are replaced or repaired by the car dealers. There are different kinds of warranties available and you should choose one, which best matches your requirement.

Warranty For Lifetime

The manufacturer of a product provides warranty which is a promise to bear the costs of the product’s defective parts, replacements of the spare parts, and the maintenance and repair costs under the warranty time period from the time of purchase of the car. This is called warranty period. Within the warranty period, the car dealer provides repair as well as service without any charge. This is all done to satisfy the customers and make them understand that their money is well spent. Their aim is to safeguard the customer’s interest. For automobiles, the warranty is issued on all type of products and it is known as auto warranty.

There are mainly three types of auto warranty. They are long-term warranty, short-term warranty, as well as lifetime warranty. The short-term warranty is issued for only three months where as long-term warranty is given till the vehicle is dragged for scrap. Lifetime auto warranty is very expensive because the repair costs are calculated till the vehicle can no longer be used. Lifetime warranty is normally offered to specific cars such in the luxury category because these cars need extra care. This warranty is not for mid sized cars and low end cars.

You Should Opt For The Flexible Warranty

Auto warranty tips are referred to thesupport given by a car dealer or a car manufacturer to caw owners. Before buying a car warranty, read the following tips. It is advised that every vehicle owner, who is not familiar with regulations and rules of car warranty, should seek advice of an experienced consultant. Opting for flexible auto warranty is a good start for car owners. It provides the opportunity to the customer to change the warranty service provider, if their service is not upto expectations. If car owners want to have a warranty for long term, they can negotiate better terms with them.

There are 3 kinds of auto warranty. The three kinds of warranty are aftermarket auto warranty, life time warranty, and new car warranty. New car warranty is provided to all brand new cars. The aftermarket auto warranty is provided to all the pre-owned and used cars, and the life long warranty is provided to those cars which are luxurious and high end cars. Choosing a flexible option gives you the freedom to pull out of a service, if you are not satisfied. It will also keep the provider on their toes to keep offering better and innovative services all the time.

Choose The Top Warranty

A Warranty is very important for the car. The manufacturers of the car issue the warranty to the customers. Under the warranty period it is the responsibility of the manufacturer to handle the cost of the repair or maintenance or replacement of any type of spare parts. Warranty is given to the owner of the car by the manufacturer of the product to provide them value of their money and for their satisfaction. Every automobile has to provide their product with a warranty. You should always select the top warranty for your vehicle. No fee should be charged to the customers regarding these replacements and maintenance. Warranty issued to each and every type of automobiles
There are manly two kind of auto warranty. They are aftermarket auto warranty, which is issued to old or used cars, and new auto warranty, which is issued to brand new cars. Aftermarket auto warranty is also known as used car warranty. The auto warranty is given on two basis and they are time as well as the distance wrapped by the car. The warranty is valid either on the basis of the time period normally it for two years or it is based on the coverage of the distance by the vehicle, say the warranty is valid up till the thirty thousand kilometers maintained by the vehicle.

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