The aftermarket auto warranty is one that provides additional support for your new or used vehicle outside of your existing warranty coverage and it may even provide warranty coverage for your entire vehicle if you do not have an existing auto warranty coverage.  The aftermarket auto warranty is often likened to a service contract because unlike other warranties, you have to pay for it.  This means that you are really paying an independent aftermarket auto warranty service provider to provide you with assistance coverage in times of need.

Most people might think therefore that the aftermarket auto warranty is not very useful or beneficial, with the alternative of simply saving one’s money for the rainy day being more favorable.  With the aftermarket auto warranty however, you gain the peace of mind knowing that you do not have to wait to claim your money to fix a vehicle; you do not have to find the nearest bank and then be faced with the problem of not being able to get your money on time. And most of all, you do not have to worry about having enough money in the bank to carry out the necessary repairs.

Auto warranty refers to the maintenance and service of the vehicle by the dealer in association with a third party vendor for a stipulated period of time from the date of sale of the vehicle. All brand new and used car vehicles have to ply on the road with an authorized warranty. Any dealer, found to have not issued a warranty, is liable for prosecution under the US federal law. At the same time, it is the duty of the car owner to insist for a warranty at the time of taking the car delivery.
The auto warranty covers repairs and maintenance of the vehicle relating to its power train, drive train, engine, steering system and brake mechanism. However, the warranty does not include the cost of replacing faulty spare parts of the car. It has to be borne by the vehicle owner.

In warranty, there are two types. The first type of warranty is the original warranty meant for brand new vehicles. The second type of warranty is the aftermarket warranty, meant for the used vehicles.

The warranty is offered for a period of time, ranging from three months to three years from the date of sale of the vehicle. It is also offered on the basis of mileage covered by the car. It ranges from 3000 kilometers to 30,000 kilometers.

The aftermarket auto warranty is designed to protect your car, or more specifically to protect you when your car breaks down or wears down.  It is a warranty or a service contract that is bought at an additional price to the vehicle purchase and it differs from all other warranties for the said reason – it is the only warranty that you must purchase.  It is also the only warranty that you can get at any other time after the first purchase of the car; more so, you can purchase this warranty at any other dealer or service provider different to the dealer that you buy the car from.
The aftermarket auto warranty is different from all other warranties also for the very reason that it is not really a warranty.  Since you are paying for this coverage, you could say that it becomes more of a guaranteed service that is valid for the terms of purchase agreed upon.  Most times this term of purchase simply means the type of coverage (limited or fully comprehensive), the period of coverage, or the distance covered in terms of mileage.  The aftermarket auto warranty is simply designed to extend the coverage of an existing warranty or to provide coverage for a vehicle where there formally existed none.

People who cannot afford a brand new car often opt for a used car. The problem in buying a used car is that you never know what you are going to end up with. The dealer might exaggerate the car’s benefits or even its’ price. Often it is only after you have driven for a few weeks will you come to know the real problems or shortcomings of the car.

To avoid such difficulties it is always safe to purchase a used car warranty from the used car dealer himself. He is then responsible for all repairs and faults after the sale. So ask for a used car warranty, as many dealers won’t offer it to you unless you ask for it. Before you comply with the warranty check what the risks may be, and what repairs and services are included in the warranty plan.

In the case that you missed out or were not aware of the used car warranty option when you brought you car you may also purchase one from a third party car dealer who can provide a warranty for the services you expect them to render. It is best to purchase a warranty in case the need arises. You can also get further information online and choose the right warranty for your car.

 

If you have recently purchased a vehicle, you may have been faced with the question of purchasing an extended warranty.  Whether or not you need an extended warranty would depend heavily on the intended purpose for which you have purchased the vehicle.  Basically, an extended warranty is a service contract that agrees to cover auto repairs and maintenance within the cost of the warranty for a certain time frame only.  Once you decide on the purchase of an extended warranty however, you must decide if you want the manufacturer’s warranty, or an aftermarket auto warranty.

The aftermarket auto warranty is a warranty contract issued and honored by a service dealer other than the manufacturer’s authorized dealers.  Aftermarket auto warranties are cheap and can be purchased for both new and used cars while manufacturer’s warranties are expensive and mostly cover new cars.  Also, an aftermarket auto warranty can only be honored by the issuing service provider, meaning that your vehicle must be taken to the same place for servicing or repairs as where you bought the warranty.  Another risk with purchasing an aftermarket auto warranty as opposed to a manufacturer’s warranty is the financial stability of the company that you are purchasing the warranty from – will they be able to honor the contract at all times?

 

Is my new car warranty enough?  The question races through your mind like a thoroughbred at the racetrack.  Is my new car warranty enough?  After you have spent your life’s savings on what could probably be the most expensive thing that you will ever own, the question still plagues your mind – is my new car warranty enough?  Quite differently though, we find that the majority of persons who do spend their life’s savings on the purchase of a new car do not even give the time of day to the thought of their new car warranty. 

 

A year later, however, your car stalls on you on the freeway as your radiator overheats.  You call your service provider for a tow to the repair shop.  Only now the question comes: is my new car warranty enough?  You try to remember what the salesperson had told you about your car warranty.  It is then that it occurs to you that your new car warranty had included roadside assistance services, and you search through your papers to find the toll free assistance number.  Where did I put the warranty again?  A year later and a little too late, you realize that your warranty provides roadside assistance for as long as your warranty is valid.  Also a year later, you begin to wonder what your warranty covers – do I have bumper to bumper warranty, or wear and tear warranty?  What is the cost to repair a radiator?  Can it be repaired, or must I replace it?  Should I have gotten an extended warranty, or at least made sure that I was covered for everything?

Picture this, you’ve decided, picked, and negotiated with a salesman for the car of your dreams. Now you are thinking of closing the deal since you think that you are going to get the car on a bargain. Wanting to close the deal as soon as possible you follow the salesman to an office where you agree to the terms, but then he turns to you and tries to sell you additional insurance, undercoating, and other parts or services. This is where your good deal turns sour. Most people agree on the overpriced extras because of various reasons, in this case you are thinking that you’re getting a good bargain and a little extra won’t hurt. Other cases are some people are already tired of the processes of researching, deciding, finding which car they would choose so they agree over a little extra to get the deal close as soon as possible.

 Little do they know that these extras are often overpriced, and that’s where the dealer is able to make more profit since the profit of selling car is not as much since they’ve already lowered priced to get you to the dealership. These days a salesman is considered lucky to sell a $30,000 car with $500 profit.

Get yourself educated of these extras, pick one that you need and moreover if you think the extras are overpriced don’t hesitate to reject it. Be an educated and smart buyer. Last but not the least; be sure to look out for the new car auto warranty that comes with the car.

American Cars are only second to Japan in reliability now, bringing warranty costs down.

Because American car companies are building better cars, the general public are submitting fewer warranty claims than in past years.  With fewer claims comes lower rates.

Other domestic automakers are scoring the same effects from the quality-obsessed teamwork approach. For General Motors Corp.’s domestic fleet, the number of warranty claims is down 36 percent over the last five years, according to spokeswoman Janine Fruehan. Warranty costs are down 21 percent.

This is great news for anyone with a domestic car.  Quality translates to lower warranty costs.  It’s a win-win situation.

See Also

• Domestics are back
  American cars are more reliable than European.

Industry executives to work together to focus on reducing industry warranty costs

Neil De Koker, president of the Original Equipment Suppliers Association, OESA, recently called for automotive industry executives to work together to focus on reducing industry warranty costs. In a brief address to attendees of the Management Briefing Seminars, De Koker said that OESA has created a Warranty Management Council, responsible for developing recommendations to reduce warranty costs.

According to Warranty Week, the industry spent $11.5 billion on warranty claims in 2004. OESA proposes that it is the responsibility of both suppliers and car companies to seriously look at warranty and other non-value added costs.

"We heard from speakers today who tell us that the next two years will require significant and extreme action to maintain profitability," De Koker stated. "It is imperative that members of the industry collaborate to reduce warranty costs to keep companies competitive.

"OESA proposes that suppliers work with the car companies and each other, to provide insight into best practices that can reduce warranty costs," De Koker added. "The objective of this OESA group is to share best practices that reduce warranty costs for the benefit of the entire industry."

OESA anticipates releasing a publication that outlines a process the automotive value chain should consider to systematically reduce warranty potential during product development. Through this activity, suppliers exchange experiences working with various OEM warranty systems and collectively increase individual company knowledge.

Formed in August 1998, OESA provides a forum for automotive suppliers by addressing issues of common concern through peer group council; serving as a reliable source of information and analysis; and providing an industry voice, when appropriate, on issues of interest. With nearly 400 members having global automotive sales exceeding $300 billion, OESA represents more than 60 percent of North American automotive supplier sales.

See Also

• Original Equipment Suppliers Association
  Original Equipment Suppliers Association(OESA) Website