You don’t usually lose your warranty, regardless of whether you have a manufacturer warranty or an extended warranty on used vehicles. There are exceptions, however. Let’s take an in-depth look at these exceptions!
A Closer Look At Auto Warranties
There are a few services that carry the common name warranty.
Certified pre-owned (CPO), or new, cars are covered by a manufacturer warranty. They usually cover repairs for a limited time and/or mileage.
If you finance a used car, you might be eligible for an extended warranty. These are also known service contracts and can be used to cover specific repairs. These are usually available at any time through an auto insurance provider. But they’re typically offered at the time of purchase by the dealership finance manager and insurance manager. These plans might have a deductible or require that you pay for repairs before they send you a reimbursement cheque.
Refinancing With A Warranty
Refinancing will close your existing auto loan contract, and replace it with a new one for the same vehicle. This can be done by your original lender or a different one. However, the most common reason for refinancing is to obtain a lower monthly payment. You can either qualify for a lower interest or a longer-term loan or both. The iLending refinance car calculator highlights how much you can afford monthly.
To refinance a car you will need to satisfy lender requirements like good credit, vehicle mileage, loan amount, and good credit. Refinance requirements can vary by lender, but you should meet the following requirements:
- You must keep your loan current.
- Your loan amount cannot be greater than the vehicle value.
- Refinancing lenders may require that the vehicle meet certain criteria, including age and mileage.
- The guidelines of the lender must also be adhered to when you borrow money.
- The vehicle must have a clean record.
Can My Warranty Be Impacted?
No, both a warranty and a service contract should survive your refinancing. Some contracts may have cancellation provisions, These clauses are very rare but it is worth carefully reading your auto loan and warranty documents before making a final decision.
Although refinancing won’t normally affect your warranty on an auto, certain things might. Repairs are not covered by warranty in all cases. Here are the few cases that can void the warranty of vehicle:
- Misuse Of Your Vehicle. Damages and repairs to a financed automobile are not covered. Your warranty may even be voided.
- Title Changes – Your warranty is null if your vehicle has suffered so much damage that it was issued a salvage tag after repairs. Your vehicle will no longer be covered by the warranty regardless of how many miles or time it has been driven. You’ll have to pay the cost of any repairs in the future.
- Tampering With Your Odometer – If your mechanic finds that your odometer was rolled back before it was traded in, the warranty is voided.
- Aftermarket Modifications – Your warranty will be voided if you fix your car or make any other changes to the original parts of your car while financing.
- Inadequate Vehicle Care – Some warranties are voided if your car is not maintained according to manufacturer guidelines. If you take your car in for warranty repairs and they find that you haven’t changed the oil or taken care of the car’s fluids properly, you will be responsible for paying for those repairs.