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to the American car-buying public and overcome quality concerns when the cars first went on sale here. Hyundai's' rankings in the annual quality surveys, and the lengthy warranty period for some of the most expensive components in a vehicle, helped draw buyers. Hyundai improves its position in the J.D. Power and Associates Initial Quality Study

The warranty terms can be an indication of the manufacturer's own estimate of a vehicle's quality. Manufactures scrutinize their own repair records. It's a safe bet when they choose a warranty term, they don't want to get into a position where it's costing them a lot of money with a long-term warranty repairs.

Established brands don't have to offer a warranty as an incentive because the cars have a reputation for quality.

One of the reasons Honda and Toyota can get away with a standard warranty is they're so reliable that it's not an issue.

Ultimately, it's in the best interests of the auto manufacturers and dealers to turn out reliable vehicles and stand behind their products. After all, even a good warranty is not much consolation if the car is in the shop all the time.

A carmaker won't survive if you have to take the car to the dealer all the time whether the repairs are paid for or not.

One of the final hurdles in buying a new car comes when you have to decide whether you want to buy an extended warranty. These warranties are really a service contract to repair certain items on your car. They run concurrent with the new car warranty, so you may be paying for double coverage until the manufacturer's warranty expires.

There are two basic types of extended contracts: those offered by the vehicle's manufacturer and ones backed by independent companies.

Contracts from the automaker cover a wide range of repairs and services, which can be done at any authorized dealer. Independent contracts may limit where you can have repairs performed, and they may require you to pay upfront and be reimbursed.

Individual dealers sometimes offer service contracts that cover work performed only at the dealership.

You can wait to purchase an extended warranty right before the original one expires. The company may require you to show maintenance records and have the car inspected to ensure that there are no pre-existing conditions.

Read the warranty closely to understand what is and isn't covered. An extended service contract can offer peace of mind, knowing that you have major repairs covered for your vehicle.

Learn more about this author, Gary Wollenhaupt.
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