Dealbreakers — and avoiding them — for car warranties
A new car limited warranty, sometimes called a “bumper-to-bumper” warranty, is a contract between the vehicle owner and the automaker. It promises to take care of any applicable repairs provided that the owner properly maintains the vehicle. But like most contracts, a warranty can be broken if one person doesn’t hold up his or her end of the bargain.
Here are a few reasons how your warranty claim can be denied and tips on how to avoid any issues down the road.
Voiding the warranty
Salvage title: If your car was in a severe accident and was given a salvage title or declared a total loss, your entire warranty is voided.
Keep this in mind if you are looking to purchase a late-model used car from a private party or an independent used car lot. If you are unsure about a car’s past, we suggest getting a vehicle history report.
Misuse of the vehicle: This term can be interpreted in a number of ways and often includes racing or competition of any type, overloading the vehicle, or going off-road if the vehicle wasn’t designed to. Some automakers will void your warranty for these infractions. Even if there is no proof and only signs of abuse, your warranty claim may be denied.
Environmental damage: If your vehicle was damaged in a fire, flood, hailstorm, earthquake or any other environmental disaster, the automaker will not honor your warranty.
Altered odometer: If your car’s odometer has been disconnected, tampered with or replaced, the dealership cannot determine the exact mileage. This is usually grounds for a voided warranty.
Voiding a claim
In some situations, the repairs for a specific part will not be covered, but you still retain the warranty on the remainder of the vehicle.
Neglect: Some people are so oblivious to the needs of their vehicle, they have gone years without having the vehicle’s oil changed. If you fail to take your vehicle in for service during its scheduled maintenance, the dealer is not responsible for repairing any damage to the engine.
Use of dirty or improper fluids: If you never change your oil or if you spaced out and put diesel fuel in your gasoline engine, any damage incurred is not covered under warranty.
Damage caused by modifications or aftermarket parts: An aftermarket modification can be anything from a lift kit for a truck to a cheap off-brand replacement part. While some dealers would have you think otherwise, simply having an aftermarket part or modifying your vehicle cannot void your warranty. However, if that part led to something breaking on the vehicle, the dealership can deny your warranty claim. In these scenarios, the burden of proof is on the dealership to prove the aftermarket part was not properly installed or a modification led to a component failure.
Tips to avoid issues
Read your warranty coverage: Find the section that says “What is not covered” or “Warranty limitations.”
Service your car at regular intervals: This is a good idea in general, but for the sake of keeping your warranty intact, follow the manufacturer’s recommended service schedule.
Keep all service records and receipts: This is another good habit to keep in case you want to sell your vehicle, but also to have proof that you maintained your vehicle.
Edmunds says: In many cases, warranties are open to interpretation. If you think that a service adviser has denied your warranty claim unfairly, you can always go higher up in the management chain, contact the automaker directly or go to another dealer altogether.