“But I have a warranty!”

All new cars come with a factory and powertrain warranty. It is important to know the difference between the two. When buying a new car or a used car the salesman will sell you on these warranties without really explaining the details.

The factory warranty will usually cover any mechanical and electrical repair. It does not cover anything that is normal wear and tear or maintenance. The powertrain is typically just the engine and transmission, not the thousands of other components that are in the vehicles built today.

  • Myth # 1 – “ I bought a used Kia, it still has powertrain warranty”
    So many times I hear a person was told this by a used car salesperson, however the powertrain warranty is typically only for the first owner of a vehicle and does not transfer to second owners.
  • Myth # 2 – “My car has a 3 year warranty, its only 2 years old ” or “My car has a 36,000 miles warranty I only have 25,000 miles”
    No. It is whichever comes FIRST. A lot of low mileage driver think they still have factory warranty even though their car is past the age (3 years), or a person that drives a lot of miles will be past the 36,000 but think they still have a warranty because their car isn’t 3 years old yet.

Most people do not realize they are out of warranty until they are at the dealership service department with a repair bill that they are told they are responsible for paying. That is when the sticker shock really sets in. Even small repairs can be $2,000.00 or more. Once your car is at the shop it is too late to get a Vehicle Service Contract.

The best thing to do is to take out a Vehicle Service Contract (commonly referred to as an extended warranty) before it is too late. The sooner you buy a VSC the less you will pay for the contract and you will get more components covered. Even if you still have remaining warranty it is always better to take out a new policy sooner than later, there are usually wait periods with a new policy that need to be met before a claim can be filed.

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