Warranties, Rebates, and Leases: What Are They and What You Need To Know

10 Nov Warranties, Rebates, and Leases: What Are They and What You Need To Know

Buying a new car is an exciting experience. There are so many things to consider when signing on the dotted line. Three common questions that come up during this process are, what is a lease, what is a rebate, and what is a warranty? Your used car dealership friends in Jackson, MI are here to help you navigate all the details of buying a new or used car and want to answer these three questions.

What is a Warranty?

A car warranty is a time or mileage-specific contract between you and the manufacturer or car dealership that protects specific parts and mechanical components. Issues that a warranty usually covers are the engine, electronics, air conditioning, transmission, and mechanical defects. If these parts and components unexpectedly break or no longer work correctly, the warranty provider pays to have them corrected. Some new cars feature a bumper-to-bumper warranty and a powertrain warranty. Every warranty is different, and it is important to know exactly what is covered and how long it will last. Once the time frame or mileage limit is reached, the warranty no longer applies. Always ask your car dealer to explain the details of the vehicle’s warranty item by item.

What is a Rebate?

Rebates, also referred to as a purchase allowance, cash back, or bonus cash is a short-term promotional discount used as a car manufacturer incentive to purchase their brand over another one. They will vary by car, manufacturer, and model. There are also rebates based on the part of the country where you purchase the car, for college graduates, military, or first responders. Rebates may be linked to special requirements that include financing only through the brand’s finance company, like Ford Credit, or Kia Financial Services, for example. Other requirements could include already owning a car from the brand or being limited to the dealership’s current car inventory. Rebates may be applied to the down payment or taken off the purchase price.

What is a Lease?

A car lease is different from buying a car to own it. A lease allows you to rent a vehicle in your name for a temporary time frame. You sign a contract and pay monthly payments for a stated number of months, usually 24 to 36. There is also a mileage limit and if you go over that number you will have to pay a penalty. You take care of the wear a tear, maintenance, and auto insurance during the life of the lease.  When the lease or contract is over, you return the car to a dealership or buy the car to own.

Purchase Your Next Vehicle From Hometown Chrysler Dodge Jeep Ram

Visit our Hometown Chrysler Dodge Jeep Ram showroom. We are your new and used car dealerships in Jackson MI and are ready to answer all your questions about warranties, rebates, and leases. Stop by today and explore our inventory today.