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Arkansas drivers who are planning to purchase a car would be wise to study the provisions of auto warranties. Auto warranties are all slightly different and may cover different parts and components of the vehicle, so understanding them and reading the fine print is crucial to making a wise decision.
Most auto warranties cover up to a certain mileage, such as 36,000 miles or 100,000 miles. According to the provisions of the warranty, any covered items that need repair before that mileage is reached will have the repair paid for by the company issuing the warranty. Major repairs include the engine and transmission. Many warranties offer coverage on the electrical components. A good warranty should provide coverage on the labor and parts.
How much do auto warranties cost? That depends on the make and model of the vehicle. A Honda is one of the cheapest vehicles to provide a warranty on, most likely due to their reputation as being a reliable make of vehicle. Auto warranties on a Honda cost anywhere from $1,200 - $2,800 per year. A Lexus, on the other hand, could cost anywhere from $2,500 - $3,800. Although the price for an auto warranty may seem high, many people who had one in place when it came time to replace the engine or the transmission were grateful for the money that was saved.
Before purchasing an auto warranty, the buyer should understand how the warranty works. Can the buyer have the car serviced at any authorized repair center, or will the warranty require that the vehicle be taken back to the dealer's lot where it was purchased? This could be an important factor if the vehicle is being purchased in a different town, if the buyer moves, or the vehicle breaks down on a trip. The buyer should read the contract and understand the requirements before making any decisions.
Many car buyers in Arkansas have found they make the best decision on auto warranties when they learn about them before making the purchase.
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