Warranties and Car Research

By:Hannah Sloan

And Tori Pickering

WarrantyWarranty

Warranty: A guarantee that there is Warranty: A guarantee that there is nothing wrong with the product (for nothing wrong with the product (for example a car). example a car).

If there is something wrong with the If there is something wrong with the product that is the manufacturer’s product that is the manufacturer’s fault, then the manufacturer will fix or fault, then the manufacturer will fix or replace the product.replace the product.

Warranty CoverageWarranty Coverage

Two types of coverage plansTwo types of coverage plans Exclusionary plans cover everything Exclusionary plans cover everything Listed plans cover certain components Listed plans cover certain components

listed in the warrantylisted in the warranty

Types of warranties Deductible- the amount you pay first. Usually labor and

facility fees Manufacturers warranty- this is the promise of your

vehicles manufacturer to repair your vehicle for a specified period of time and or mileage.

Used Vehicle- means an automobile whose original manufacturers warranty has expired. This term has nothing to do with ownership of a vehicle.

Standard WarrantiesStandard Warranties

On all new carsOn all new cars Most popular standard warranty is Most popular standard warranty is

36mo/36,000 miles36mo/36,000 miles

Used Car Warranties

Range from as is to 12mo/12,000 miles

Usually only covers major components

Most popular is 3mo/3,000 miles

Extended Warranty• Varies in price and coverage• Not required, but a good thing to have

for the major parts

RecallRecall

A request from the manufacturer to return A request from the manufacturer to return a producta product

Minimizes liabilities and lawsuitsMinimizes liabilities and lawsuits

IIHSIIHS

The Insurance Institute of Highway SafetyThe Insurance Institute of Highway Safety Tests cars on safetyTests cars on safety Car Companies use test results to improve Car Companies use test results to improve

their cars and have higher ratings than their cars and have higher ratings than their competitiontheir competition

More About IIHS

Founded in 1959 Did not use crash test

research until 1968, the same year the first seatbelt laws went into effect

The IIHS crash test facility opened in 1992

Crash Tests

• Cars are tested on:• Human, vehicular,

and environmental aspects

• Possible interventions that can happen before, during, and after

• How they hold up in front, side, and rear crashes.

Mechanical Breakdown vs. Wear and Tear

Mechanical breakdown- The part must completely fail before replaced

Wear and tear coverage- The part will be replaced before failing

Question one

What is a warranty? A: A request to return a product B: A guarantee that nothing is wrong with a product C: A mechanical term meaning you need new

breaks

Question two

What is a recall? A: A request to return a product B: A guarantee that nothing is wrong with the

product C: An IIHS term meaning that a test on a car needs

to be repeated

Question threeQuestion three

When was the IIHS founded?When was the IIHS founded?– A: 1958A: 1958– B: 1968B: 1968– C: 1959C: 1959– D: 1969D: 1969

Question four

True or false: Car companies actually care about IIHS test results

True: they are always looking to be better than their competitionFalse: they could care less and it costs too much to be continuously modifying their vehicles