The Importance of Warranties in the Automotive Industry

 An Automotive industry is one of the biggest industries have ever been today.

There’s almost no one who is not related to it.

Whether you are an owner or you provide a car service, those are great investments in your life that you need to protect them and make sure the product is good, and that what is covered by a warranty.

A warranty is type of given that you can always bet on. It gives you the feeling of relaxation that I know no matter what happens I won’t have to pay more.

 In this essay I will be discussing about warranty in automobile industry and importance of warranty for the car. Warranty means a promise to pay made by the company,manufacturer or dealer on behalf of a product.Warranty aids the consumer if a defective product is received. It has become a necessity for people to purchase a car whereas warranty is given by the company.Initially,there are two types of warranty such as short term and long term warranty.A short term warranty will give warranty service for a maximum period of 12 months or 12,000 kms where as a long term warranty will provide warranty service for a period of 5 years or 150,000 kms.For example,a person will get short term warranty of 3 years or 100,000 kms if he/she will buy a car from Toyota.Secondly,if the dealer did not want to repair the vehicle,warranty will aid the consumer to claim from the company or manufacturer.Obviously,a consumer should not take claim warranty for the engine related problems as it is not warranted.For example,suppose you bought a new Volkswagen car from a dealer and you have the problem of water leaking in the engine.Then at the time of your problem,a dealer will not entertain you.However,if you approach the company or manufacturer,you can claim the warranty.To conclude,warranty is thrust of confidence of the manufacturer on his product.Warranty plays a vital role in the purchase of the car.

Understanding Automotive Warranties

Types of Warranties

 Warranty from Manufacturer: A new car normally comes with a warranty on parts that covers you for a specified interval of time or distance (3-5 years or 36,000-60,000 miles).

 Extended Warranty: Another term for this is a service or maintenance contract; this is a supplement to the standard manufacturer’s warranty and extends the scope of the cover both at the time of purchase of the car and sometime later.

 Powertrain: That’s the parts of the car that make it go (the engine, the transmission, and other critical components), and the warranties for these tend to be slightly longer than a bumper-to-bumper policy.

 Bumper-to-Bumper Warranty: basically the same as a ‘new car warranty’. Special protection from a vehicle manufacturer or an insurer usually provided for a factory-financed, bundled price, which covers almost everything with a brand name under the hood except wear and tear parts found on the exterior (tires, brakes, etc).

Coverage Details

 Replacement parts and labour: product will be replaced at our expense including the labour costs to install a new replacement product for a covered part.

 Some warranties also include roadside service, which covers you if your car breaks down. The service includes towing help, jump-starting your battery if it dies, and replacing flat tyres.2.

 Rental reimbursement: Your warranty may pay for a rental car while your car is in the shop for covered repairs.

Benefits of Having a Warranty

Financial Protection

 Cost-effective: Repairs are expensive. A warranty will cover these expenses, and you won’t be surprised by a sudden big bill. Replacement of engine or transmission can cost several thousands of dollars, but with a warranty you won’t pay for this.

 The warranty means your finances will be more predictable; you’ll know what garage bills to expect and when instead of planning only for those inevitable, but non-planned, repair bills; Budgeting: The warranty will mean I can plan and save my money more sensibly because I won’t have that unexpected repair to worry about.

Increased Vehicle Lifespan

 Routine Servicing: Warranties of this kind would pay for servicing, which would encourage you to have your car serviced regularly, which keeps it running healthy and for longer.

 Warranty Repairs: Original and Warranty maintenance repairs are often handled on automobiles by licenced repair technicians and OEM grade parts.

Enhanced Resale Value

 Warrantable Transfer: If you should happen to sell your car, you can pass on many warranties to the new owner, which may make the car more attractive to a buyer and could even get you a larger price for the car.

 Warranty-covered cars prove that you did something to keep the vehicle moving right Proof that you kept it moving right: Warranty vehicles prove that you did something to keep the car moving right.

Peace of Mind

 Less stress: knowing that you are covered in the event of a breakdown or major repair allows you to just drive the car – you don’t have to spend your life dreading that something is going to go wrong.

 Factual: A warranty may be accompanied by the promise that it matches the facts: ‘You can trust your machines to have good engines.’

Choosing the Right Warranty

Evaluate Your Needs

 Just how much do you drive and under what conditions? If you are a long distance driver, then an extended warranty probably makes sense. Habit Of Driving.

 Age and Condition of the Vehicle: Newer cars or trucks won’t have as many miles (and therefore, won’t have as much wear and tear on them), and so will need less coverage, whereas used or older vehicles are more likely to have problems.

Compare Options

 Coverages and exclusions: What does each warranty cover and not cover? For example, some might not cover certain parts or types of repairs.

 Price: Compare the price, not just the coverage, of different warranties – you could pay a bit more to start with, but save a ton later.

Check Provider Reputation

 Scrutiny: Look up the warranty company: check reviews, look at its ratings, call some customers to make sure that the warranty company is legitimate and good.

 Step 3: Make a claim. You should be able to do this as easily as possible. It should be simple and should just work. If your claims process is more fussy or complicated, this could be an excellent sign of the sort of people you might be dealing with.

Conclusion

 For the entire period you own your car, you can make your investment as low risk as possible by taking advantage of warranties that boost your car’s life, residual price, and your peace of mind. So, first, understand the different type of warranties available from an auto repair shop. Second, consider the advantages of buying the warranties. These are the steps to take in maximsing your car buying experience. For a new car or an extended warranty for your old vehicle, the guarantee a warranty offers is the guarantee you deserve.