What to consider when agreeing on a car warranty

Vehicles hold financial weight for many of us. Being the second biggest purchase a person will make, falling just behind buying a home, it’s important that we consider how we can protect our vehicles. By purchasing warranty cover we can lessen any further costs that come with potential damage and reduce the risk of unexpected costly repairs. 

A good warranty can be an extremely valuable part of a new car deal, especially on a used car, but it's important to know what warranties cover and whether they’re right for you. 

At Zuto, we understand the need to protect our customers, which is why we have introduced warranty products available to purchase alongside your car finance.

What is a car warranty?

Car warranty is a contracted product that helps cover the associated costs of specific car parts. It is also used for covering the labour time required for mechanics to fix the faults in your vehicle. A warranty will cover a set list of parts, periods of time and mileage limits within which you can make a claim should you need to. 

In other words, warranty provides protection against your vehicle should something go wrong. 

What does car warranty cover?

Warranty coverage can vary greatly depending on factors such as vehicle age, mileage, new vs used, etc. Before you commit to a warranty plan always make sure to check the specific terms and conditions of the policy you are interested in to know what is and isn’t covered. 

You will likely find that most warranties cover some or all the below: 

· Engines

· Transmission systems

· Fuel and ignition systems

· Cooling systems

· Electrics

· Gearboxes

· Steering

· Suspension

· Non-frictional clutches

· Brake system parts

Failure to check the terms and conditions may result in paying out of pocket for a repair you aren’t covered for.

What does warranty not cover?

As above, it is important to check your specific policy for these details as they can vary, however, typically a warranty will not cover parts that tend to break due to ‘wear-and-tear', such as: 

· Clutches

· Brake pads

· Exhausts

· Tyres

· Catalytic converters

· Bodywork

· Paintwork

· Glass

· Headlights

You’ll also want to consider what’s known as consequential damage. This is when a part fails, and that failure causes damage to another part of the car.  

Our Car Buying Experts will be able to give you an outline of what is and isn’t included in the warranty available to you through Zuto.

How does a car warranty work?

Making a claim on your car warranty is designed to be as simple a process as possible. All you need to do is reach out to your associated warranty provider and ask them to cover the required costs of your car repairs. This payment will then be sent to the associated garage or reimbursed to you. 

However, bear in mind that a warranty might not cover the full costs of required repairs and labour, so it’s best to make note of any claim and labour limits that could dictate maximum cover costs. 

And whatever you do, do not go to a third-party repair service before making a claim or you will invalidate your warranty. 

How long does a warranty policy last?

Traditional warranties on new cars tend to extend to a minimum of 3 years, while extended warranties generally last for 12 months for most manufacturers and third-party providers. However, there are sometimes exceptions to this, and you may very well find policies that extend their warranties over longer periods. 

At Zuto, you will have the option to take coverage from a minimum of 1 year or you can get coverage for up to 4 years should you prefer that. The prices will vary, and estimates can be found below, but our team will be able to advise you on what this will cost you specifically. 

How much does a car warranty cost?

Everyone’s least favourite part...the cost. Thankfully at Zuto we are able to offer warranty to our customers at a reduced rate. The RRP would be approximately 40% higher if you were to take out a warranty policy directly.  

The cost of a warranty will range depending on the level & length of cover you choose. This cost can sometimes be added into your finance package depending on your lender. It can also be spread over monthly instalments or paid upfront if you’d prefer. The cost can also include some additional parts such as:

 · Air conditioning

· Airbags

· MOT failure

· Emissions

· & many more

Generally speaking, the cost of your policy will be dictated by a variety of factors, such as:

· Your car’s age.

· Your car’s manufacturer

· Your car’s model

· Your car’s mileage

· Your car’s service history

For the best deal, you’ll want to pick a reliable car with low mileage and good service history.

By purchasing a warranty, you will be able to take more control of budgeting your car expenses, protect your purchase, along with paying less for a major repair. 

Of course, if budgeting is your primary concern when it comes to covering the cost of a car, then our car finance experts may be able to help. From PCP finance to bad credit car finance, our expert team is on hand to help you afford the car of your dreams.

Get in touch with us today to see how we can help and don’t forget to visit our blog for more insightful articles like this one, such as what other costs you need to consider when buying a car.