There are two types of auto dealer warranty programs – one is the warranty you got when you bought your new car, and the other is the extended warranty you were offered before you signed on the dotted line.
The original standard manufacturer’s warranty comes with every new car, but not every manufacturer offers the same warranty, and not every model gets all the perks. These warranties do not cost you anything extra, and usually offer a variation on bumper to bumper coverage. They last for a set amount of time, or a set number of miles, whichever comes first. After that time or mileage is up, that’s it. There is no renewal, and no grace period.
The extended warranty can be purchased through a dealership at the time you buy your new car, but that method is one of the most expensive ways to get an extended warranty. Don’t let the sales person bluff you on that – extended warranties can always wait. You can always wait to get an extended warranty from a third party company. The terms and conditions on these vary wildly, so read all of the fine print and know what you are paying for before you sign up.
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