971 E 9th St, Chico, CA 95928
So, You Bought a Brand-New Vehicle with an Extended Warranty…
Recently, someone very close to me—let’s call her Kay—purchased a brand-new vehicle. I won’t mention the make, model, or dealership. I will say it’s one of the most popular vehicles from one of the world’s leading manufacturers, with a strong reputation for longevity when properly maintained.
Kay has been extremely happy with both her purchase and her experience at the dealership. She loves her new vehicle, and as of this writing, she’s already put about 15,000 miles on it. At the time of purchase, Kay also opted for an extended warranty from the dealer. The extended warranty covers basic maintenance for up to 60k miles— oil changes, tire rotations, and fluid checks.
The other day, Kay shared her experience during her first scheduled maintenance visit. She brought her vehicle into the dealership for routine warranty service: an oil change, tire rotation, and fluid inspection. However, when she was presented with the work order, she was surprised to see over $500 in additional “necessary” services.
Kay explained to the service advisor that she only wanted the maintenance covered under her warranty. At that point, the advisor became somewhat aggressive, insisting that these additional services were required at every visit if she wanted her vehicle to last.
Kay stood her ground. She looked him in the eye and said, “No. I only want the services included in my warranty—oil change, tire rotation, fluid check, etc. I don’t want anything else. If my brand-new vehicle can’t make it to 60,000 miles without all this extra work every time I come in, then I won’t be buying another vehicle from you.”
The service advisor fell silent, then quietly rewrote the work order according to her request.
It’s no secret that additional “recommended” services are a significant source of revenue for dealerships. Unfortunately, Kay didn’t receive a copy of the original estimate, so I can’t say with certainty whether any of those recommendations were justified at 15,000 miles.
However, I did review the manufacturer’s maintenance schedule in our system. At 15,000 miles, the only additional items listed were basic visual inspections—brakes, steering components, ball joints, and similar systems. Frankly, we perform all of these checks—and more—as part of our one-hour vehicle inspections, and at a significantly lower cost.
This leads me to one of these conclusions: either
A) the service advisor was recommending services Kay did not actually need, or
B) the dealership charges over $500 for roughly 30 minutes of visual inspection work not covered by the warranty, and/or maybe,
C) Kay was confused about what was covered, what was needed and/or what was required for her warranty to remain valid.
To be fair, I don’t have the full documentation, so I can’t speak to the exact details. I do know, however, that Kay is not prone to exaggeration. More importantly, the key takeaways below remain valid regardless of this specific situation.
The following tips are sourced directly from the Bureau of Automotive Repair’s website, Maintenance and repairs - Bureau of Automotive Repair.
*Check your warranty coverage
When taking your vehicle for repairs, make sure you understand your warranty coverage. The warranty is a repair contract that covers defects or damages from regular use. This helps protect you from paying out-of-pocket fees if your vehicle needs repairs.
Here are some important things to know about vehicle warranties:
- Your warranty does not cover regular maintenance or parts that wear down with normal use. The warranty period is a set amount of time or miles—often three years/36,000 miles. But you may have more coverage for emissions parts and repairs. Find your warranty details in your owner's manual or by contacting the manufacturer.
- You can get warranty repairs at any auto shop, not just the dealership. You do not need to take your vehicle to the dealership for warranty repairs. By law, your vehicle warranty will stay in effect if you get repairs or maintenance at another auto shop. The shop must use appropriate parts and procedures. Learn more about your vehicle warranty rights.
- You may consider an extended warranty or service contract. Dealerships offer these at an extra cost for new and used vehicles. Be sure to carefully review the terms and conditions before you commit. The California Department of Insurance can help you choose the option that is right for you. The Federal Trade Commission also offers guidance you may find helpful.
- You may get a replacement or refund under California's Lemon Law. The Lemon Law protects you when your new or leased vehicle has a major warranty defect. The manufacturer has a reasonable number of attempts to fix the defect. If they cannot repair the defect, you may get your vehicle replaced or repurchased. Learn more about California's Lemon Law.
A key takeaway is that you do not need to return to the dealership for routine maintenance in order to keep your vehicle’s warranty intact. In California, you are free to have your vehicle serviced at any qualified automotive repair shop. In many cases, the maintenance required at standard service intervals can be performed at a significantly lower cost by independent shops—like ours—simply because the labor rates are often lower than those at dealerships.
That said, it’s essential not to miss scheduled services and to keep detailed records of all maintenance performed. Proper documentation ensures your warranty remains valid should an issue arise.
Another key takeaway is that both the California Department of Insurance and The Federal Trade Commission are recommended sources of help when considering purchasing an extended warranty for your new vehicle. They are there to provide this service to consumers so it makes sense to utilize one or both of these agencies when considering the pros and cons of an extended warranty and which options might be right for you. (We have not used this service as it’s been over 20 years since one of us purchased a brand-new vehicle from a dealer.)
The Maintenance and repairs - Bureau of Automotive Repair also includes a note about California's Lemon Law. The California Lemon Law is in place to protect consumers. Unfortunately, we DO have first-hand experience going through the Lemon Law process. If interested, you can read an entertaining piece from our previous blog, A Lemon of a Truck: The Wild Ride of Our 6.0L F350. (Note: yes, this was our last new vehicle purchased from the dealer.)
As I mentioned earlier, Kay and I are very close. I advised her to review her workorder carefully to confirm that all items included in her vehicle’s 15,000-mile service, which can also be found in the owner’s manual, were properly completed during her dealership visit. After all, no one wants to accidentally void their warranty.
As it turns out, the answer was no, the entire 15k mile inspection had not been completed. In fact, the oil was not even changed! The fluids were not listed on the tag as being checked and/or topped off either. The only thing done for the extended warranty was the tires were rotated. It appears that the additional $500 was indeed to complete the remaining “visual inspection” items listed for the 15k mile service inspection, as well as the oil change and fluid check.
Needless to say, Kay is not very happy about her experience and now is thinking it may have been a mistake to purchase the extended warranty from the dealership. It seems she did not really understand what was included with the purchase.












