Extended Car Warranty – Should I or Shouldn’t I?
Extended Car Warranty – Should I or Shouldn’t I?
by James Hamel
Automakers have been offering warranties for decades now, but it wasn’t until South Korean giant Hyundai started offering a 10 year/100,000 mile warranty that things got really competitive among automakers. Now even Mitsubishi and Chevrolet to name a few offer their own 100,000 mile programs. But even if you don’t buy from one of these brands, you can still get that length of coverage by buying an extended warranty.
As long as people have been selling cars, they have also been breaking down. While it is unclear who offered the first automobile warranty, it is known that, as recently as the 1980s, most automakers only offered a 12 month/12,000 mile factory warranty on their new vehicles.
For example, the Hyundai and sister company Kia do have a 10-year, 100,000-mile powertrain (engine and transmission) warranties—but you can only use it as the first owner. According to Hyundaiusa.com, the second owner will only “have powertrain components coverage under the 5-year/60,000 mile New Vehicle Limited Warranty.” That means second owners of Hyundai/Kia products are out of luck there if they were not aware of the loss in warranty. Only Mitsubishi has a 10-year/100,000-mile warranty on the powertrain that is fully transferable to a second owner.
All warranties have a “grace” period of time after you buy new where the entire vehicle is covered against failure by something called a “bumper-to-bumper” warranty. Most full-coverage warranties vary from three to five years. After that period, only a few automakers like Hyundai/Kia continue to cover your transmission and engine for a total of 10 years or 100,000 miles.
To extend the length of coverage for your vehicle’s warranty you must still be under the original factory bumper-to-bumper warranty. To purchase this extension you must go to an authorized dealership and fill out paperwork either in the Service Department or the sales office. As always, refer to the website of your vehicle’s manufacturer for exact instructions.
Consumers should be aware that there are trade-offs for buying an extended warranty from an aftermarket firm. Although not always true, most aftermarket warranties do not cover as many components as a manufacturer’s warranty, yet they are usually cheaper. As always, be sure to thoroughly read the warranty information pamphlet given to you when you are shopping for an extended warranty.
Photos by James Hamel and Todd A. Allen (Kia Optima)
