When considering a manufacturers warranty when buying a new car, keep in mind that the actually coverage is not free. The manufacturer estimates the overall repair costs associated with a particular model and includes the repair costs into the selling price of the vehicle. A vehicle that has more coverage may have a higher selling price compared to a comparable alternative model.
Although there are some exceptions, most new cars come with various types of warranties that are included in the purchase price. All types of warranties have a duration that ends with either time or mileage, which ever comes first. Some of the various types of new vehicle coverage may include
- comprehensive (bumper-to-bumper)
- major component
- powertrain
- maintenance
- emissions
- safety
Generally emissions warranties are similar between like models since they are regulated by federal and state agencies. Safety warranties are generally extended beyond the comprehensive warranty and include components like air bags and restraints.
Bumper-to-Bumper or Comprehensive Warranties
Even though the comprehensive warranty is often referred to as “bumper-to-bumper”, there can still be some limitations to the coverage. Since comprehensive new car warranties cover defects in manufacturing, wear items like brake pads, tires or alignments may have limited coverage. Failed components unrelated to a manufacturing defect may also have limited coverage.
With the exception of luxury vehicles, the majority of new vehicles come with 3-year or 36,000 mile coverage. Luxury vehicles are generally extended beyond 3 years or 36,000 miles. The biggest difference between vehicle manufacturers new car comprehensive warranties is their actual policy on covered components.
Powertrain and Major Component Warranty Coverage
The majority of car manufacturers offer either a powertrain or major component policy on new vehicles that extends beyond the comprehensive warranties. Powertrain cover generally includes components like
- engine
- transmission
- axles
- driveshaft
Major component policies will cover all of the above powertrain items plus additional items like electrical, temperature control, audio and other major parts. There can be a big difference between manufacturers when it comes to the duration of powertrain and major component coverage.
New Vehicle Maintenance Coverage
Some manufacturers include a scheduled maintenance policy with a new car purchase. Routine maintenance like oil changes, tire rotations and certain filter replacement are some examples. Some maintenance policies may also include wear items like a brake service or windshield wiper replacement. The maintenance that’s performed under these polices are generally limited to specific factory recommendations.
The bottom line is when comparing new cars, look at the type of warranties that are offered. With each type of warranty, find out what’s actually covered and what’s not. Look at the different warranty durations in terms of miles and time. Find out what types of extended warranties are offered by the factory. Once the warranties are researched, look at the value in terms of the purchase price.
James Clausen - Clausen received a Bachelors Degree in Business Administration in Automotive Management and Marketing at Northwood University, graduating ...
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