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August 8, 2008, Newsletter Issue #154: What's Covered
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Tip of the Week
Make sure you're covered! An auto warranty is a sure bet for peace of mind. However, what do new car warranties actually cover? Each manufacturer has its own warranty terms, however, a new car warranty should protect you against mechanical breakdown and component failure—as well as cosmetic problems such as paint defects and loose trim.
Most new car warranties are in force for a fixed period of time or a set amount of miles (whichever expires first). For example, a Ford Mustang comes with 36 month/36,000 mile basic and powertrain warranties and a 60 month/50,000 mile corrosion warranty. In other words, if you top 36,000 miles before you reach the 36 month mark, your basic and powertrain warranties expire. Conversely, you only have 40,000 miles on your Mustang and it begins to show signs of corrosion after 48 months, you're covered!
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