Manufacturer and Extended Warranties simplified

Often, the first step in knowing what something is; is to simply understand what it isn’t… Your vehicle’s warranty is not the same thing as your Service Plan or Maintenance Plan*, but they are related. You should always service your vehicle at the recommended intervals or risk voiding your warranty.

*If you’re unsure about the differences between Service Plans and Maintenance Plans this article is for you.

When purchasing a new vehicle, it usually comes with a standard Manufacturer Warranty which ends once you’ve reached a specific number of kilometres or years. You can choose to purchase an “additional” warranty when this happens which is known as an Extended Warranty. Below we have a look at how the two are unique.

Manufacturer Warranties

This is the company who made your car’s way of saying: “The new vehicle you’ve bought shouldn’t give you any major mechanical grief and if it does we’ll help take care of it.” In other words, the manufacturer warrants* to pay for repairs and replace critical parts & components should they break within a specific number of KM’s or elapsed time-period.

*Manufacturer Warranties are all different: Always refer to the contract provided by your dealership or manufacturer if you’re feeling unsure. 

Extended Warranties

You can extend your existing coverage on your car by purchasing an Extended Warranty. Generally, Extended Warranties are designed to take effect once the Manufacturer’s Warranty ends and provides for seriously costly mechanical breakdowns and electrical failures. You can find a list of these here.

Extended Warranties may only pay up to a certain amount and not necessarily cover the entire bill. They also do not provide for scheduled services or the replacement of wear-and-tear items. A LiquidCapital Service Plan/LiquidCapital Maintenance Plan could take care of those expenses.

Understanding the terms of both your Manufacturer’s- and/or Extended Warranties pays off in the long run.