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Car warranty

  • Car warranty options will depend on whether you're buying a new car and where you get the best new car warranty, a used car where you will get a used car warranty or whether you simply want cover for your current vehicle. Typical policies available include breakdown repair cover, manufacturer warranty, independent dealer warranty and after market warranty. Read more about each in our guides.

Available car warranty options

  • Typical policies available include breakdown repair cover, manufacturer warranty, independent dealer warranty and after market warranty.

Used Car Warranty

Car warranty guides

A car warranty is also known as mechanical breakdown insurance (MBI), car warranties offer protection against unexpected repair bills and cover for wear and tear. The car warranty options available will depend on whether you are covering a new car, a used car, or your current vehicle. Some policies will exclude consequential loss damage to an insured part caused by the failure of a non-insured part. When choosing a car warranty we always give you the option to choose the length of the warranty and for prices based on independent garages or network dealers.

Find out about options such as manufacturer, dealer and after-market warranties, betterment, the length of policies, claims limits, mileage restrictions, and how a warranty can tie in with breakdown cover. There’s more to read about pricing factors and the advantages and disadvantages of car warranties, with information on what you should and shouldn't expect to be covered - remember to look for possible exclusions such as oil leaks and wear and tear, and to consider consequential loss.

Negotiating for an Extended Warranty

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Before buying a car warrant always do some research on car warranty prices? Extended warranties, like many products that a car dealer sells, are often marked up from the wholesale cost. This means that you have room for negotiation.

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Begin by getting quotes from at least two sources. Dealers may offer different quotes, but once you have a few answers, you'll know roughly what the going rate is. At this point, you can either take the lowest offer, or venture into more advanced negotiations.

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When they're selling extended warranties with new cars, dealers often talk in terms of monthly payments, not the cost of the warranty itself. In order to really know what you're paying, ask for an itemized cost of everything involved in the vehicle purchase, including the specific cost of the extended warranty.

Advantages of a Factory car Warranty

Extended vehicle warranties fall into two classes: manufacturer or factory warranties and third-party warranties. Even though manufacturer warranties are generally more expensive, we recommend them over third-party warranties for several reasons:

  • Factory-trained technicians using manufacturer-authorized parts repair your car.
  • Repairs aren't delayed while the service department gets an authorization for repairs.
  • If you sell the vehicle, factory extended warranties are often transferrable to another owner.
  • You don't have to lay out the money up front or file claims for reimbursement.

Dealers are able to sell both factory and third-party warranties, and will sometimes promote whichever brings them the most profit. If the dealer says he doesn't offer the manufacturer's warranty, you might have to explore other options, such as inquiring at another dealership that sells the same brand. Most consumers buy plans through a dealership, but some carmakers also sell their extended warranties online.

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Take your time before settling for a car warranty

  • Don't Be Pressured and take your time and get to know the car warranty cost involved in the warranty you want to buy. Some dealerships push customers to buy extended warranties at the time of sale. But you may be better off shopping around to compare third-party, or service contracts. Do your research, but be aware that prices for service contracts tend to go up sharply as the basic manufacturer's warranty draws to an end.

  • Think ahead and consider how much a major repair bill would rock your household budget. If that's a scary thought, paying upfront for a service contract could be a wise choice. Just know that some repairs may not be covered by the contract. Most manufacturer warranties on new vehicles cover at least three years or 36,000 miles. If you're likely to purchase another new vehicle after a few years, an extended warranty probably wouldn't make sense. On the other hand, if you tend to keep vehicles longer, an extended warranty may be a good fit.

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Car Warranty Club

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