Used van owners can acquire extended warranties.
All new cars come with basic factory warranties, which are contracts ensuring the customer that the manufacturer will repair or replace parts of the vehicle if they malfunction. The details of these new car warranties vary between manufacturers, but they generally provide a high level of coverage. However, factory warranties only last for a limited amount of time or for a certain number of miles. After this time, extended warranties can be purchased to protect against unexpected repairs.
Extended Warranties
Some car owners choose to purchase extended warranties to ensure their cars after the factory warranty expires. Like a new car warranty, an extended warranty will cover the cost of car repairs for a certain period of time or up to a certain number of miles. A car owner can choose between different levels of coverage, depending on which parts of his car he would like to be covered.
Bumper-to-Bumper Warranty
A bumper-to-bumper warranty is the highest level of coverage that can be purchased. It ensures every part of the car, literally from the front bumper to the back bumper. However, it does not cover repairs associated with regular maintenance and wear. In addition, some warranties come with exclusion lists, detailing specific parts of the car that the plan does not cover.
Stated Plan Warranty
A stated plan or stated coverage is a warranty often purchased for used cars. These plans list which components of the car they will cover. They usually cover the most essential mechanical components of the vehicle.
There are many factors to take into consideration before deciding to purchase an extended warranty. Older cars in particular are susceptible to mechanical trouble or breakdowns, so warranties can help save owners from expensive mechanical repairs. Warranties do not protect cars from usual oil changes and tune-ups, but they will help when things break unexpectedly. Most factory warranties last three to four years, but it might be beneficial to purchase an extended warranty before the initial coverage ends, as it may be possible to get a lower rate.
Wrap coverage warranties are a specialized kind of extended warranty for cars that are already covered under a powertrain warranty. Wrap coverage warranties can supplement existing powertrain protection by covering other parts of the vehicle. In other words, wrap coverage combined with an existing powertrain warranty can provide bumper-to-bumper protection. This protection usually lasts up to 10 years or up to 100,000 miles. Wrap coverage warranties can sometimes only be purchased within the first 12,000 miles.
