Examining the powertrain promise: what bumper-to-bumper warranties cover that dealers won't
 Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
As the U.S. auto industry attempts to rebuild its reputation, commercials that promise warranties are becoming more and more commonplace. The common promise is "10 years, 100,000 miles," which sounds pretty good. But don't be fooled: only full bumper-to-bumper coverage will completely protect you against the costs of a repair bill.
Those "10 years, 100,000 mile" plans usually only protect the powertrain of the vehicle: the engine, transmission, and related parts. The rest of your car is vulnerable to breakdown and costly repair.
The damage could be something as simple and common as an air conditioner malfunction, which can cost up to $1200 dollars to repair, plus labor.
Companies like AA Auto Protection offer wrap coverage, which combined with the dealer's powertrain warranty protects the whole of the car, hence the term "bumper-to-bumper warranty." And because the dealer has taken care of some parts, the rates are usually much cheaper than getting a full extended warranty.
Of course, whether you're purchasing wrap coverage or an extended warranty for an older car, you're saving money over what repair shops typically charge to repair a broken-down vehicle. And you can't put a price on peace of mind.
4/30/2010 6:33:33 PM
|