The Different Types of Car Warranties

Let's take a look at each one in more detail:

Adjustment Warranties

These are provided by the dealer and cover items such as squeaks, rattles, small adjustments, alignments, leaks, and any other type of small annoyances you may encounter during the first few weeks of ownership.

There's usually a time limit of 90 days in which you can use the adjustment warranty.

Since the warranty is provided by the selling dealer, they're the only ones that will fix the problems. If you purchase a car located far away from home, it's important to do a thorough test drive to make sure there are no problems before taking the car home - and if there are, make sure you get the dealer to fix them on the spot or agree to do it later.

Manufacturer's Warranties

The factory warranty covers all major components of a vehicle up to a certain time period or mileage milestone (whichever comes first).

Manufacturer's warranties are broken down into 3 types:

• Bumper to Bumper Warranty
  This is the most comprehensive part of a factory warranty and covers all parts and systems of a vehicle, excluding "wear and tear" items such as tires, brake pads, and wiper blades.

  Many vehicles these days tend to have expensive problems with electronics and this is where the real value of a bumper to bumper warranty comes into play. Most manufacturers offer a 3 year/36,000 mile bumper to bumper warranty, with some such as Hyundai and Mitsubishi offering up to 5 years/50,000 miles of protection.

• Powertrain/Drivetrain Warranty
  This covers the engine, transmission, differential and other mechanical parts of the vehicle. Most manufacturers provide a longer coverage period for powertrain warranties than they do with bumper to bumper. Some, such as Hyundai and Kia provide up to 10 years/100,000 miles of coverage.
• Corrosion/Rust Warranty
  This covers repairs due to rust or premature deterioration of major sheet metal. Some manufacturers provide lifetime protection.

"Secret" Warranties

Secret warranties are provided by most manufacturers, but most car buyers don't know about them. They're sometimes referred to as "policy adjustments" or "goodwill service".

If your vehicle develops a major problem after the factory warranty runs out, sometimes all it takes to fix it is to call the manufacturer's customer service number and complain.

It especially helps if you've been loyal to the brand in the past, or if other car owners are having the same problems.