New Car Warranty

If you will be buying a new car, you may want to make sure the new car warranty that is included will actually protect your investment.

New Car Warranty Basics

Every new car comes with a new car warranty. This warranty is guaranteed by the manufacturer and lasts for a very specific amount of time. A warranty covers all service necessary and is free of charge to the owner of the vehicle. Typical new car warranty coverage includes:

  • Diagnosis of all covered systems
  • Removal, repair, and reinstallation of covered parts within covered systems

The length of a new car warranty and the type of coverage that is provided depends upon the manufacturer of the car. Some manufacturers offer long warranties and others don't. Warranty coverage may also depend upon the model of the car. For example, the Ford Motor Company offers different length warranties for different vehicle models.

Regardless of the manufacturer, most new car warranties are the either/or type. Here are some examples of typical warranty durations:

  • 1 year or 12,000 miles
  • 3 years or 36,000 miles
  • 5 years or 60,000 miles
  • 10 years or 100,000 miles

New Car Warranty Tips

When deciding what type of car to buy, you will want to pay special attention to the new car warranty that comes with the vehicle. Not every new car warranty is created equal. Some offer much more coverage than others. For example, you may encounter a warranty that cover non-wear items in the car for 3 years or 36,000 miles (whichever comes first). You may also encounter warranties that cover repairs for 10 years or 100,000 miles.

Understanding the different parts of a new car warranty is very important. A typical new car warranty consists of two parts: the powertrain warranty and the bumper-to-bumper warranty. The powertrain warranty covers all of the parts that make the car start and move, such as the engine and the transmission. The bumper-to-bumper warranty, on the other hand, covers everything, from bumper-to-bumper except for normal wear items, such as tires and brakes.

Before buying a car, make sure you have a thorough understanding of the warranty coverage that is being offered by the manufacturer. You should also find out where repairs will be completed should something happen. Inquire about towing coverage, loaner cars, and anything else that you may be wondering about.

Extended Auto Warranties

When buying a new car, many people choose to purchase an extended auto warranty. This warranty does exactly what the name implies and extends the warranty coverage on your vehicle.

You can choose to purchase an extended warranty (usually called a factory warranty) from the car dealership, or you can purchase warranty package from a third party company that offers such products.

While extended warranties can provide you with extra protection once your existing warranty runs out, they can also be costly expenditures. To make sure an extended warranty is worth buying, you will want to carefully go over the items that are being covered. You will also want to shop around and compare both coverage and costs to make sure you get the best deal. Here are some other tips that may help:

  • Make sure diagnostic expenses are covered.
  • Get a low or $0 deductible.
  • Talk to your local repair facility to make sure they accept the warranty.
  • Contact the Better Business Bureau to learn more about the company selling the warranty.
  • Buy a warranty backed by an Ambest rated "A" or better insurance company.
New Car Warranty