Auto Warranty The Reason Why the Same Car is Sold at Different Prices

Someone once said that in this world, you get what paid for. This is very true. Especially when it comes to cars, you might find cars with the same abilities feature and style being sold at different prices. What makes all the difference is the auto warranty. It is because of the type of warranties that there is such big difference in the prices of more or less similar cars. The extended car warranty company you get comes with determines the amount added to its net value.

Types of warranties:

Manufacturer limited warranty.

This is the warranty that is automatically sold with a brand new car. It is limited in the sense that the warranty is valid for a period of time or a given mileage. For instance, it may be valid for three years or for fifty thousand miles. They usually cover malfunctions that occur during that period but not tear and wear. Some of the vendors sell extended warranties. This means that the warranty will cover up to poor workmanship and poor part quality. By buying this extended warranty, it means that you will pay more.

Bumper to bumper warranty

This is the kind of warranty that is offered by most insurance companies such as AAA. They majorly copy the conditions offered by the manufacturer. That is, they cover malfunctions but not tear and wear or aftermarket parts. Therefore, if you are looking to buy this warranty, it is advisable that you leave out the warranty provided by the manufacturer since you will be getting basically the same services.

Used car warranty

This type of warranty is provided to already used cars only. This is because, old cars are likely to experience malfunctions in various parts more frequently. As a result, the warranty only covers things like the engine, transmission, drive train, heating and cooling, fuel system and braking system. This is usually cheaper than the limited or bumper-to-bumper warranties.

Powertrain warranty

This warranty covers the parts that make the car operable. These are parts such as engine, transmission, drivetrain, pump systems and four-wheel components. Most manufacturing companies are now offering this type of warranty to their customers. The warranty only applies if you are the original owner of the car. This warranty is also offered by most insurance services and its price varies depending on what parts are covered in the warranty.

Benefits of Auto Warranty

Well! imagine you just bought you car and the first day on the road-you get an engine knock. sometime it may just be a slight accident that damages your car which was still fresh from the manufacture or car shop and you haven’t even enjoyed you car for long. There is where you warranty comes in handy. sometime automobiles come with manufacture errors and if you don’t realize them you end up inheriting this faults and that is dangerous. Looking at the auto warranty review you will find testimonies of different people who have benefited from this vehicle warranties in a great way, since this machines are just as full of errors as the humans who make them. Learning from past car warranty review you will understand the greats importance of vehicle warranty.

It is therefore important to know which warranty to choose for your car. In as much as it affects the price of your car, it also determines the services you will get for ‘free’.