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2009 will bring changes in new and used car warranties.
What you should know about warranties.
Strict state used car “lemon laws” may not be enforced due to the Big 3 Bailout
Transferable manufacturer warranties MAY not be transferred as easily in 2009. The Big 3 may attempt to eliminate their legacy warranty costs. What happens to cars sold by dealers who go out of business or who are merged?
Internet access to reliable vehicle data from services like CarFax (the generic name) continue to grow. Consumers should be warned that the original source of this data is the same for any used car data seller. In the opinion of many Google Base and Google VIN data (user generated content) may replace both CarFax and Autotrader as the premier source of used vehicle data
Selectcar.com is an expert in car warranties. We have worked with of nearly every make and model dealers to get factory defects repaired at little or no cost. As you can see from the types of cars SelectCar has sold we understand late model "nearly new" cars from all major Dealers,
import and domestic. We are car warranty experts. We also sell extended car warranties and understand how these contracts are very similar to health care plans.
SelectCar was a high-end independent used car dealership. As a retailer we got factory defects repaired under factory warranty. Before SelectCar put any car on the lot, the car was sent to a franchise Dealer repair facility and got all factory defects fixed.
We
had many problems and our customers had many problems. We expect in the year 2009 all type of warranty problems will intensify.
Franchise dealers service departments are run as separate profit centers. The franchise dealer sends the warranty bill to the manufacturer. the dealer bills the manufacturer at a reduced wholesale labor rate. SelectCar as a used car dealer provided many dealer service departments with a steady flow of billable jobs. Dealer service department in the past were happy to have SelectCar as a customer.
We think this may change dramatically with auto bailout.
We think the Detroit Big 3 MAY NOT honor used car warranties sold by certain dealers? Although you think your used car is still covered by a Big 3 factory warranty, it may not be. Your local dealer may not provide you the old pre-bailout level of warranty service?
We think situation MAY open the door for some sort of warranty sales from a trusted local mechanic. possibly some sort of a prepaid plan for labor only.
The ability to buy parts as a franchise dealer is hard for many local service facilities.
When you buy a pre-owned vehicle, it’s important the warranty is transferred into your name. Sometimes there is a fee, which must be paid by the customer directly to the manufacturer to transfer the warranty. As a courtesy, the seller of the used car should provide the information to complete the warranty transfer and pay the fee.
Make sure you complete this step and understand what is and what is NOT covered
Many used car buyers do not completely understand their warranty; especially the differences
in basic, drive train, federal emission and corrosion.
In our new fee system we are prepared to
discuss in detail any potential future repairs and to determine whether these
repairs would be covered by the factory warranty for any specific used vehicle you are considering.
All cars need
periodic maintenance, and this is not covered by most warranties. However often
an emissions warranty is shorter than a basic factory warranty. Additionally, we know which vehicles really
mean it when they promise “bumper to bumper” coverage.
We can help any used car customer understand the process specifically how dealers verify warranty eligibility especially the
start and end dates. Whether your
warranty is for 3 years /36,000 miles or 4 years and 50,000 miles it is the
event that happens first, the length of time or the mileage which ends your
warranty. When you buy a pre-owned car you usually are
buying the remainder of the factory warranty. This may no no longer be the
case.
It’s important that you know the exact month your 36 or 48 months are up. Dealers determine
this month by running the vehicle’s VIN through their factory communications
computer. Although digit 10 of the VIN
gives the vehicle’s model year (y= 2000, x = 1999) the “in-service” month is kept
in the factory database. This is the month when the warranty clock is started. Manufacuters should include this on their web sites so
consumers know exactly when their warrant is up and which dealer will honor the
manufacturer warranty. We help prospective used car buyer understand any "Special Factory
Policies" with regard to their vehicle. SelectCar is a
pre-owned buying expert. We know how to check the VIN's of all cars to see if any
campaigns are open on any of the vehicles we sell. This is different from a CarFAX We review all vehicles for factory campaigns, special policies,
or secret warranties. Manufacturers set
aside funds for dealer repairs that are available "no charge for recurrent
problems. These are only available for specific vehicles as Special Factory
Policies " What if you forget or can’t get your car to franchise
dealer for a warranty repair? As a used car buyer you do NOT want to find out that repair work you paid for at an
independent repair facility would have been covered by your warranty if the
repair were performed at a franchised facility. If this has ever happened to you you know how you feel. We are experts in being reimbursed. We know the procedure.
We can teach you how to make sure you have the right receipts and how to present them to the right person at a dealer or
at the factory. In most instances
dealers have the ability to reimburse the customer at factory labor rates. SelectCar is also an expert in extended warranties. We sold many brands of extended
warranties. We can explain the
exact coverage the dealer is trying to sell you in an extended warranty. We can help you with an objective “risk-
reward” calculations. Sometimes extended warranties are not worth it, they are a high margin dealer add on
