What is a car warranty?
While many of us dream of buying a car we never give much importance to the usual car warranty or the extended warranty. Now the first thing that comes to every consumer’s mind is what is car warranty? Well, a car warranty is an assurance provided by the car manufacturer that in case if any unwanted problems occur in your car, all the expenses will be covered by the company and you will not be liable to pay up for any such issues. We all know that vehicles are manufactured professionally with proper R&D procedure, followed by careful examination of individual parts, manufacturing defects/issues do take place. This is when car warranty comes in handy to save your day.
In India, we usually can opt for three types of car warranties which are as follows.
New Car Warranty
A new car warranty is the original manufacturer warranty that comes when you purchase a new car. The new car warranty can be anywhere in the range of 1-4 years depending upon the vehicle and the car manufacturer. While most of the carmakers offer a 2 years / 40,000 km warranty, others offer 4 years / 80,000 or unlimited kilometres warranty.
Used Car Warranty
Used car warranty as the name suggests, is a warranty provided to used or second hand cars. This kind of warranty ranges from 6 months to 2 years can is charged at a premium depending upon the age and condition of the vehicle.
An extended warranty is a type of car warranty that is applied to cars that have completed the original manufacturer warranty. This warranty can be in the range of 2-4 years after the completion of the original warranty and can be availed before buying the car or after the completion of the manufacturer warranty. Premium of an extended car warranty is usually affordable if availed while you buy the car and can be slightly expensive once the original manufacturer warranty is completed.
Benefits of car warranty
Following are the benefits of a new or extended car warranty.
Comprehensive Coverage – A comprehensive coverage warranty is the best possible warranty one can ask for. While usual warranty plans cover only a part of repairs or is limited to a certain amount, a comprehensive plan gives you a peace of mind that you won’t have to pay any additional costs in case of any problems.
Peace of Mind – Most customers are content with the original manufacturer warranty and don’t consider buying an extended car warranty. Imagine yourself in a situation where you encounter sudden problems in your engine, gearbox or crankshaft which are not covered by auto insurance you have on your car. Having an extended warranty gives you the much needed peace of mind in case of any unwanted issues with crucial automotive parts occur.
Savings – Imagine paying up around INR 1 lakh or even more in some case for defective parts like engine, transmission, crankshaft, turbocharger and the likes. Instead of shelling out such an amount, it is wise to pay the usual premium for the extended warranty which would save you a lot of money in case of any issues with your car.
Increased Resale Value – Another reason to buy an extended car warranty or a used car warranty is the increase in the resale value of your car. Having an extended or new car warranty makes for a better selling point while selling your old car which also helps the buyer considering your car has been well maintained.
Cost of Car Warranty
Now we all know that there are three types of car warranties that include the New car warranty, Extended car warranty and the used car warranty. Depending upon the duration of the warranty, kilometres covered and the age of the car, costs of warranties differ. A new car warranty is the original manufacturer warranty and is essentially limited to only a few parts of the vehicle. Taking a comprehensive car warranty will add a slight premium to the overall cost of the car.
Speaking about the extended car warranty, car manufacturers or dealers offer the same while you buy a new car which is slightly affordable as compared to the premium you have to pay once the manufacturer warranty is completed. Extended warranty ranges between 1-5 years and 20,000 to upto 2 lakh kilometres depending upon the car and the manufacturer.
A used car warranty is one of the most expensive one and usually ranges between 6 month to 2 year or 10,000 to 40,000 kilometres depending on the age of the car. As far cost of these warranties is concerned, an extended warrant can be in the region of INR 4000 to INR 8000 per year whereas a used car warranty can be in the range of INR 5000 to INR 10,000 per year.