Automobile Manufacturers Use Warranties as Incentives for Buyers to Purchase

Multiple Choice

Automobile manufacturers use warranties as incentives for buyers to purchase their products. Why are warranties on vehicles important to buyers?

A) manufacturers pay insurance policy premiums on the buyer's vehicle for a set period of time
B) for a fixed time period, buyer's can return vehicles for a full refund of the purchase price
C) for a specific time period, the manufacturer bears the cost of fixing or replacing the vehicle
D) manufacturers bear the cost of fixing the vehicles under unlimited-term service contracts