One month ago, you took delivery of a new car. What a thrill it has been-until now.
A stint on the shoulder of the road after overheating leaves you inconvenienced-and out the cost of a tow. But you’re not concerned about the repair because you have a new-car warranty. A promise from the automaker to fix almost whatever ails your wheels generally for the first three years of use (either by you or the dealership if it was a demonstrator) or 36,000 miles.
Though new-car warranties do little to prevent breakdowns, Mike Rosenau at Chrysler Corp., calls them an insurance policy.
“Despite all the advanced technology, engineering and production quality control, problems do arise. As good as our products are, parts may break. Our warranty covers problems when they occur,” Rosenau said.
For 1995, Chrysler’s new warranty covers defects in materials and workmanship and includes adjustments, carpets, drive belts, fuses, lightbulbs and seat covers for three years or 36,000 miles, whichever comes first, the common length of a new-car warranty.
“Chrysler Corp. tailored the new warranty in response to customer needs,” Rosenau said.
That’s what automakers have been doing since the first warranty appeared in the post-World War II period, offering coverage for 90 days or 1,000 miles, in response to the guarantees offered by manufacturers of home appliances. And though their terms have varied over the years-from 12 months/12,000 miles to the five years/50,000 miles that Chrysler offered just a few years ago, they have remained a marketing tool to let the customer know the manufacturer stands behind its product.
As a marketing tool, new terms appear with each new model year to give carmakers a leg up on the competition. For example, for 1995, Chrysler’s Customer One Care stays with the car even if the vehicle is sold in the warranty period. Toyota Motor Corp. also offers free automatic warranty transfer. The other manufacturers will continue the warranty to a second owner for a fee, generally $35 to $50.
General Motors Corp. stands alone in providing warranty coverage on the paint and trim for environmental damage from acid rain, bird droppings, tree sap and road salt.
And Cadillac has initiated a new policy covering all tire warranty claims. Unlike other tire warranties, in which the carmaker covers tire failure only if it’s caused by a defect in the car, such as a faulty suspension system, Cadillac customers can now have any defective tire replaced by the dealer.
That Cadillac is a leader in warranty extension is no surprise. Warranty enhancements, like new-car options, generally are made on luxury models first and trickle down to other cars.
Generally, warranty work is available at dealerships or other authorized repair facilities-independent shops that can do the work if there’s no dealership in the area.
“When the car breaks down, a customer should return the vehicle to the dealership for repair because the factory rarely reimburses customers for repairs performed by independent repair shops even when the warranty is in force,” said Michael Iovino at Des Plaines Chrysler, Plymouth, Jeep, Eagle.
He recalls a case when the alternator in a customer’s vehicle failed. The alternator was replaced by an independent repair facility. The vehicle owner brought the approximately $200 repair bill to the dealership for reimbursement.
Iovino says that the warranty specifically says the vehicle has to be brought to a Chrysler dealership for repairs, but the factory reimbursed the customer in a not-uncommon case of maintaining customer goodwill.
Many aspects of warranties are common among carmakers. Here’s a rundown of what a warranty generally covers:
Chrysler, GM, Ford and Toyota (whose policy is representative of Japanese carmakers) all provide coverage for three years or 36,000 miles. Though they all cover manufacturing defects, you’re on your own with maintenance and wear items such as wiper blades, brake pads and clutch linings.
In the first 12 months of the warranty, Ford picks up the tab for adjustments and alignments. Ford’s Bill Farrington promises some modest enhancements for 1995, but wouldn’t elaborate.
At Lincoln, Ford’s luxury division, the warranty runs for four years or 50,000 miles. Likewise at Cadillac, GM’s luxury division, it’s four years or 50,000 miles. GM also provides adjustments to headlights, tire balancing, suspension alignment, trim panels and more for 12 months or 12,000 miles.
To its three-year/36,000-mile basic warranty, Toyota adds coverage of the drivetrain, engine, transmission or transaxle and safety components for five years or 60,000 miles. Toyota’s Lexus luxury vehicles are covered for four years or 50,000 miles.
There are no deductible charges on any of these warranties for 1994 and newer cars. But for older cars, deductible charges can range from $50 to $100 per visit.
Some vehicle components are covered separately.
Take batteries. At Ford, GM and Chrysler, a failed battery can be replaced free in the first 12 months or 36,000 miles. After the first 12 months, Ford picks up part of the cost for three years or 36,000 miles. Toyota extends its coverage to one year or 12,500 miles. Like the others, Toyota’s costs are prorated if the battery fails before three years.
Ford, Chrysler and GM cover the air conditioning system for three years or 36,000 miles. That includes recharging with the original refrigerant or conversion to a new, more environmentally friendly coolant. Toyota covers the air conditioning system for one year.
Then there’s the protection against corrosion. Chrysler’s policy covers rust perforation, a hole made by corrosion from the inside, for seven years or 100,000 miles. Ford protects the outer body metal against rust for three years/36,000 miles and against perforation for six years/100,000 miles. Affected metal will be repaired or replaced. Forget warranty work on gunshot holes or accident damage.
Toyota bodies are covered for five years/unlimited mileage against perforation of all sheet metal components in normal use, meaning no damage from chips, collision or acid rain.
General Motors will replace or repair metal that has surface rust or is perforated for six years/100,000 miles.
Safety systems have another warranty. Chrysler, GM and Toyota cover supplementary restraints (air bags) and seat belts for three years/36,000 miles. Ford offers protection for five years/50,000 miles.
And other than at Cadillac, tire defects generally are covered by their manufacturer unless a car system failure ruined the tire. This warranty generally lasts one year.
All carmakers are required to provide a Federal Emission Defect Warranty. This guarantees operation of the emission control system for five years or 50,000 miles.
Some of items covered include the air/fuel control system and sensors, catalytic converter, spark plugs, ignition wires, fuel filler cap, ignition coil, ignition module, exhaust gas recirculation valve (EGR), electronic engine controls and sensors, powertrain control module, air flow sensor, fuel vapor storage components, positive crankcase ventilation valve (PCV) and gas tank.
A second government mandated warranty, the Emissions Performance Warranty, covers repairs if a vehicle fails a state or federal emissions test.
Chrysler and Ford offer this warranty for two years or 24,000 miles. GM’s coverge is five years or 50,000 miles.
But, with all carmakers, if a dealer technician finds that the vehicle emissions are within standards or you haven’t properly maintained the car or someone has tampered with the emission equipment, warranty assistance may be denied.
It’s also a good idea to call the manufacturer or contact a new car dealership for help in determining specific warranty information about your car before repairs are performed. Publications such as Consumer Guide, Consumer Reports, The Car Book and AAA AutoTest have such information.
Another way to wind up paying for your own warranty work is to void the agreement. Failure to provide proper maintenance can void it as can driving the car in a manner for which it was not intended, such as off-roading in a Cadillac, pulling heavy loads or racing.
Paul Benedetto from Larry Faul Chevrolet in Palatine recalls a customer who drove a new car 10,000 miles without changing the engine oil and filter. In the period, one quart of fresh oil was added to the engine.
At 10,000 miles the engine molded itself into a solid mass due to poor lubrication caused by dirty oil. The customer brought his vehicle in for warranty repairs.
“The factory could have refused warranty coverage for engine repairs due to neglect, but offered to split the $5,000 repair cost with the customer,” Benedetto said.
