- advertisement -
Columns: Driving for Dollars
Terry Jackson   Expert: Terry Jackson
Driving for Dollars
Longtime auto author and reviewer answers your questions
Driving for Dollars

When good warranties go bad
 

Dear Terry,
I bought a sedan brand new with a manufacturer's 100,000-mile, 10-year power train warranty. After the first year, the air conditioning went out on me. The manufacturer refused to cover it.

- advertisement -

Two weeks ago, the thermostat stuck and caused my radiator to overheat and caused the block to crack. The minimal cost of repair with a rebuilt engine is $5,000. The dealer has said the warranty will not cover this repair.

When we bought the car we also took the extended warranty. Coverage has been denied even though the thermostat is listed under covered items. What do I do?
-- Tom

Dear Tom,
A car manufacturer may offer several different layers of warranty. For example, the warranty may only cover refrigerant in the air conditioning for one year. Wear items such as brake pads may only be covered for one year or 12,000 miles. The power-train warranty may cover "selected" engine and transmission and transaxle components.

You need to see what the terms of the extended warranty are with regard to appeals and arbitration. This may take a lawyer to resolve, because, I suspect, the claim is being denied under something akin to lack of routine maintenance on your part. Long-term warranties often have so many disclaimers as to make them worthless when you really need them.

Here are this week's reader questions:
7 ways to avoid buying a used-car lemon
How can we fight the insurance company's appraisal?
Should I pay cash or finance my new car?
Can my dealer renege on a 10-year, 100,000-mile warranty?
Bankrate.com's corrections policy -- Posted: Dec. 5, 2008
Read more Driving for Dollars columns
Ask a question

Auto Loans
Compare today's rates
NATIONAL OVERNIGHT AVERAGES
48 month new car loan 6.79%
60 month new car loan 6.84%
48 month used car loan 7.09%
ADVERTISING PARTNERS
RELATED CALCULATORS
  Auto loan calculator  
  A rebate or special dealer financing?  
  How much will the auto lease really cost?  
VIEW ALL  
FINANCIAL LITERACY
Rev up your portfolio
with these tips and tricks.
- advertisement -
- advertisement -