• Bumper to Bumper Warranty vs. a Limited Car Warranty

    When it comes to getting warranty coverage for a vehicle, owners can select what’s called a “bumper to bumper warranty” that covers practically everything on the vehicle, or a limited warranty that has some limitations or conditions on parts and systems that will be covered. Shoppers can compare these two fundamentally different types of warranty options for an initial or extended warranty on a vehicle. Here are some of the considerations and warranty types that car shoppers should keep in mind when looking at warranty coverage for a new or used car, truck or other vehicle.

    Manufacturer Warranty – A manufacturer warranty or factory direct warranty is something that often accompanies a new vehicle. These kinds of extensive warranties are about as close to a bumper to bumper warranty option as some buyers are likely to get. Factory direct warranties will generally cover both parts and labor for a certain period of time, which include coverage for most parts and systems of a vehicle. Look at a company’s web site for more detailed factory direct warranty offers.

    Certified Pre-owned Warranties – A certified pre-owned vehicle is one that has been thoroughly inspected by a manufacturer or auto maker’s technicians. Some of these certified vehicles come with a certified pre-owned warranty that may be similar to a factory direct warranty in that it comes close to the “bumper to bumper” warranty standard with coverage for both parts and labor, and offers the vehicle owner choices in where he or she can go to get service or repairs for a vehicle.

    Extended Warranties – Extended warranties are often offered by a dealership or third party. They can be offered on used vehicles, or on a new vehicle when the initial factory direct warranty wears out. These kinds of warranties show some of the problems with the bumper to bumper warranty option for older vehicles. Many times, drivers will find that it’s not worth covering everything on a vehicle past a certain date. Bumper to bumper extended auto warranty coverage can be less efficient, partially because insurers may not entirely know which parts or systems will be most likely to fail after a certain mileage. For these types of warranties, a limited warranty allows the vehicle owner to focus the insurance on parts or systems that he or she is most concerned about.

    Transferable Warranties – Some of the bumper to bumper types of warranties mentioned above may be transferable to a third party, allowing for resale of a new or slightly used certified vehicle. Extended warranties are less likely to be transferable, or to be as desired by the next owner of the vehicle.

    Short-term Warranties – Used car dealers like to offer specific short-term warranty coverage on used cars sold from their lots. These warranties, generally covered and offered by the dealership independently, are mainly just a way to assure customers that they are not buying “lemon” cars that will break down soon after being driven off of the lot. However, because of these time limitations, these may not have a whole lot of value, which is why dealers tend to throw them into a deal without raising the sticker price of a vehicle significantly.

    Think about the above points when selecting from bumper to bumper or limited warranty options for a new or used vehicle.