Over Half of Car Buyers Factor Auto Manufacturer's Warranty into Choice
While the length of an auto manufacturer's warranty features more and more prominently in vehicle advertising what role does it play in a car buyer's decision to choose a particular vehicle?
Only just over half of car buyers, 54 percent, who answered a new and exclusive BuyingAdvice.com survey said that the length of the auto manufacturer's warranty was a factor in their decision to buy a particular vehicle.
In fact over 37 percent of car buyers who participated in the poll said that they did not know the length of the warranty on the car for which they had requested an Internet price quote.
A sample of 1900 users of the web site agreed to participate in the survey. Each had requested an online price quote and stated they were within 30 days of buying a new car.
Over the last decade manufacturer's warranties have steadily lengthened. Ten years ago most vehicles came with a standard three year, thirty six thousand mile warranty but this has gradually increased with many manufacturers offering 4 year, 50,000 mile bumper to bumper coverage and some offering longer but more limited warranties.
And it is the limitations on the coverage that can provide the biggest obstacle for the consumer comparing options. Warranties come in such a wide variety of forms that it is not unusual for a new vehicle to have up to five or six different warranties of varying lengths on different parts of the automobile.
The only way to truly compare what is being offered is to study the terms of the warranty very closely. The basic or "manufacturer's" warranty is sometime referred to as a "bumper to bumper" warranty and is typically the shortest warranty on a new car and the most comprehensive.
Some manufacturer's warranties excluded batteries, though these may have their own warranty from the supplier. Emissions equipment, seat belts and air bags can also be subject to their own warranties. In most cases factory installed options are covered by the manufacturer's warranty, but it is important to check the terms.
Most manufacturer's warranties have exclusions for parts that are designed to wear out such as brake pads, shoes and tires. However, like any set of tires you buy, the tires on a new car will likely come with a warranty on manufacturer's defect, so if you experience unusually quick wear or failure you may have some coverage even on parts designed to wear over time.
But one of the keys to making a successful warranty claim is to be able to demonstrate that you have conducted the required routine maintenance. Many warranties are invalidated if routine maintenance is not performed so keeping all service record is a wise move so that you can detail that you have met the terms of the warranty in the event of a claim.
In most cases the next longest warranty on a new vehicle is the "power train" warranty which covers the major drive components of the vehicle such as the engine and transmission. This is the warranty which some manufacturers have now extended to 100,000 and 10 years and promote heavily in their advertising.
It is particularly important to know exactly what is covered when looking at these warranties, particularly if they are a major consideration in your purchase. Typically these warranties do not cover electrical components which can leave some very expensive and crucial areas of the vehicle without coverage.
One major exception to this is the battery and electrical components of hybrid vehicles which are usually covered by a separate warranty of their own which is often longer than the "bumper to bumper" warranty but not as long as the power train coverage.
The longest warranty on a new car is usually the "rust warranty" but it is also one of the areas which creates the most confusion. Careful examination of the rust warranty will show that it really only covers rust caused by defects in the sheet metal of the car and is invalidated by rock chips, acid rain and hail which, given today's manufacturing methods, are the most common causes of rust on new cars.
Most dealerships will offer an "extended warranty" package at the time of purchase. These are equally complex and come in a wide variety of forms and once again it is very important to study the terms of the warranty before deciding if that is something you are interested in.
The first thing to realize is that you do not have to buy an extended warranty either at the dealership or at the time of purchase. It is good to research your options prior to heading to the dealership and have a basis for comparison when examining the dealer's offer.
Areas to examine on an extended warranty are the size of the deductible, any limits on where repairs can be made and how the repairs are paid for. Only 27 percent of our survey sample said that they would consider an extended warranty.
Most dealers also offer a service contract which covers all routine maintenance. This can be useful for those wanting a very predictable cost of ownership or for luxury car owners which require specialized maintenance but only 18 percent of our sample said they would consider buying a service contract.
As with all areas of the car buying process, research will pay off when you come to make the decision about what are the best options for your situation.
Published on Wednesday, July 25, 2007 - Email to a friend
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