Car Warranty Lingo Explained
Another question commonly asked to our DoneDeal experts. What is a car warranty and how does it work? Well essentially it is a contract that provides coverage for repairs and replacements of specific vehicle parts due to defects or malfunctions. It offers financial protection and peace of mind to vehicle owners. Understanding the different types of warranties, their terms, and potential pitfalls can help you make an informed decision when purchasing or maintaining a vehicle. Let's break it down a little.
Types of Car Warranties
Manufacturer’s Warranty
Also known as a factory warranty, this type of warranty is provided by the car manufacturer when you purchase a new vehicle. It typically covers defects in materials and workmanship for a set period or mileage limit, whichever comes first. Common components include:
Bumper-to-Bumper Warranty: Covers most vehicle components except for wear-and-tear parts like tires and brake pads. Usually lasts 3 to 5 years or 50,000 to 100,000 kilometres.
Powertrain Warranty: Covers essential powertrain components such as the engine, transmission, and drivetrain. Often lasts longer than a bumper-to-bumper warranty, typically 5 to 10 years or 100,000 to 150,000 kilometres.
Corrosion Warranty: Covers damage caused by rust and corrosion for a set number of years.
Extended Warranty
An extended warranty, also known as a vehicle service contract, is purchased separately and begins when the manufacturer’s warranty expires. It can be offered by the car manufacturer or third-party providers. Coverage varies widely and may include:
Comprehensive Plans: Similar to a bumper-to-bumper warranty, covering most major components.
Powertrain Plans: Focused on covering engine, transmission, and drivetrain components.
Customisation Options: Some plans allow you to choose specific components for coverage, such as air conditioning or electrical systems.
Dealer or Third-Party Warranty
When buying a used car from a dealership, they may offer their own warranty, which is separate from the manufacturer’s. Third-party providers also sell warranties with varying levels of coverage. These warranties could have:
Limited Coverage: Some plans only cover certain parts, so reading the fine print is essential.
Service Restrictions: You may be required to use specific repair shops or follow certain maintenance schedules.
Certified Pre-Owned (CPO) Warranty
If you buy a certified pre-owned (CPO) vehicle, it typically comes with a warranty provided by the manufacturer. These warranties vary but often include extended coverage beyond the original factory warranty, providing additional peace of mind.
Implied Warranty
In Ireland, used car dealers must provide a warranty under consumer protection laws. By default, cars must be of satisfactory quality, fit for purpose, and as described. While a specific warranty isn’t mandatory, buyers are entitled to legal protections under the Sale of Goods and Supply of Services Act 1980 and the Consumer Rights Act 2022. If a defect arises shortly after purchase, the dealer may be required to repair or refund. Some dealers offer additional warranties, but terms vary.
Key Warranty Terms to Understand
Deductibles: Some warranties require you to pay a deductible for each repair visit.
Exclusions: Wear-and-tear items like brakes, tires, and wiper blades are usually not covered.
Transferability: Some warranties can be transferred to a new owner if you sell the car, increasing resale value.
Claim Process: Check how claims are handled, some require prior authorisation, while others reimburse you after repairs.
Voiding Conditions: Failing to follow maintenance schedules, modifying the vehicle, or using unauthorised repair garages can void your warranty.
What to Look Out For When Choosing a Warranty
Coverage Details: Understand exactly what is and isn’t covered to avoid unexpected repair costs.
Reputation of Provider: If opting for a third-party warranty, research customer reviews and company ratings.
Cost vs. Benefit: Consider whether the cost of the warranty justifies the potential repair savings.
Limitations and Exclusions: Read the fine print carefully to ensure you know what might not be covered.
Authorised Repair Garages: Confirm whether you can choose your own repair facility or if you must use a specific network.
A car warranty can be a valuable investment, but it’s essential to choose the right one based on your needs and budget. By understanding the different types of warranties, their terms, and potential red flags, you can ensure your vehicle remains protected while avoiding unnecessary expenses. As always we wish you happy browsing for your next vehicle on www.donedeal.ie
