What is the difference between a Warranty and an Extended Warranty?

If you are buying a new car or a used one you may have two different options of warranties for your vehicle protection. Continue reading to interact with your basic concerns about warranties. 

Difference between Warranty and Extended Warranty

Protection of your vehicle has fallen into two different categories.

  • Warranties
    Protection services provided by the manufacturers in cost of a new vehicle are referred to as warranty. This service has a limited duration of time for specific problems. It also lasts on certainly calculated miles of drove vehicle.
  • Extended warranties
    Service contracts under extended warranties are offered by auto dealers. Extended warranties provide protection services to electrical and mechanical components of vehicles that are not offered by auto manufacturers. It involves no daily maintenance like changing oil service or tire replacement service. However, this is quite expensive. Although you do not have to purchase extended warranties, it is optional. It does not come along in buying a new vehicle like warranties offered by auto manufacturers. 

If you are planning to buy an extended warranty for your vehicle, you must read the contract carefully. Following are the major points to keep in mind while buying extended warranties.

  • Availability of price negotiations 
  • What kind of problems and repairs they are providing in coverage?
  • What certain problems are excluded from coverage?
  • Duration of the extended warranties
  • Do they overlap their services with the manufacturer’s warranty?
  • Planning the usage of your vehicle is also included to keep in check.

What is meant by the First Extended Service Corporation?

The demonstration of the first extended service is a warranty contract which contains four options for repairing the vehicle. It is typically offered by auto dealers. The first extended service corporation costs no payments. Deductible payment coverage goes from $50 to $100.

Repairment Options

Following are the options which are planned for first extended service corporation. The details given below can customize according to the required repairs of your vehicle.

1 – POWERTRAIN. This plan covers

  • Hybrid or electric components
  • Transmission
  • Engine
  • Front-wheel drive
  • Rear-wheel drive

2 – BASE. This option covers the following services along with powertrain plans.

  • Air conditioning 
  • Steering 
  • Brakes
  • Front and rear suspensions
  • Gaskets
  • Seals

3 – HIGH TECH. This is the second comprehensive option from the company. It covers all high-tech systems like

  • Power seat motors
  • Anti-lock brakes
  • Fuel tanks
  • Radiators 
  • Radiator fan

4 – COMPREHENSIVE. It includes the following coverage

  • Music system
  • Side mirror remote adjuster
  • Locking security system
  • Lamps or cigarette lighters

Furthermore, you will get entertained by the first extended service, only when you have kept your vehicle in maintenance routine. 

Advantages of First Extended Services

Apart from the vehicle breakdown, the first extended service also provides other beneficial protection. Following are the benefits:

  • Car damage repayment:
    It is beneficial if your car is in the service shop and needed days to recover, you may go for a rental vehicle. You will get a $35 maximum for five days from extended warranty service to cover your rental expenses.
  • A vehicle breakdown in the middle of the road:
    Extended warranty also provides roadside emergency services for example; towing, flat tires, and dead batteries it also includes the delivery of car liquids like oil, fluid, or fuel. The company provides coverage of $100 for an initial emergency. 
  • Traveling payment:
    If you are 100 miles away from your home, and your road trip gets sabotaged because of a corporation’s car breakdown. The service will help you to recover the damage with $200 for food and lodging for five days. 

The extended warranty can be transferred to the new owner if you want, on the same car. 

Facts about Warranties

Knowing your initial warranty services before getting them is a smart move. In addition, you will also stay aware of scams. Following are the other facts about the warranty you must know:

  • Legal possibilities
    If you have done your vehicle routine maintenance from someone else, and if the dealer denies repairing in such a case, it is illegal. Moreover, it means you have the choice to select your repair facility under the warranty coverage. 
  • Recycled parts

If you have used certain recycled parts in your vehicle, remember! This will not end your warranty. However, some dealers or manufacturers suggest you use certain parts for free of costs under coverage.

  • Maintenance record 

Whoever provides services to your vehicle like oil change, brake pads service, belts, rotations of tires, and other basic inspections. You must keep a record of routine maintenance. Make a file of all receipts just in case. If you ever claim your warranty issues and concerned authorities find out you do not maintain your vehicle, your warranty claims are worthless and issues will be denied.

Vehicle parts are often available under two types:

  • Aftermarket parts
    Parts from aftermarket are made by the manufactures
  • Recycled parts
    Recycled parts are basically used parts of other vehicles. And they are available to sell in good condition. 

Although, if your recycled or aftermarket parts are not installed perfectly it can probably damage other parts. In addition, if it is real, your warranty coverage will not be granted to your vehicle. Unless for this case manufacturer or dealer must have damage prove before denying the coverage.

Additionally, the demonstration of buying a car with warranty services is a little sensitive. You might get scammed and lose your money over some tricky service contracts.



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I've got so many tattoos and you know what? I'm still scared of getting them. Oh, and I love writing about the weirder stuff in life. You'll see.

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