Warranties
Learn the basics about your new vehicle's limited warranty coverage to ensure your new vehicle has the proper care and maintenance.
Factory or Bumper-to-Bumper Limited Warranty
A factory warranty comes with all new vehicles. During the coverage period, an authorized dealer will repair, replace or adjust all parts on your vehicle (except tires) that are defective in factory-supplied materials of workmanship.
A factory warranty requires that the manufacturer pay for the cost of certain repairs. Generally, factory warranties don't cover the following:
- Batteries (these are usually covered by their own warranties)
- Normal wear and maintenance (oil changes, wiper-blade replacement)
- Damage from the environment (floods, lightning, hail)
- Damage from inappropriate maintenance (incorrect oil or fuel)
- Damage from the owner or vehicle occupants (accidents)
Some factory warranties expire after three years or 36,000 miles. When the vehicle is sold, some factory warranties can be transferred to a new owner if they haven't expired.
Powertrain Limited Warranty
Covers drivetrain parts, including the engine and transmission.
Corrosion or Rust-through Limited Warranty
Covers rust perforations caused by natural elements. Usually, surface rust is not covered under this warranty.
Emissions Control Limited Warranty
Covers any defective component or system that could increase a vehicle's pollution for a specified amount of time and mileage, depending on the manufacturer. Examples of covered components include onboard computers and the oil filler cap.
Extended Service Plans
Some drivers prefer to purchase an extended service plan when they purchase their vehicle, since paying for coverage in advance can be much less expensive than paying to fix a vehicle later.
With extended service plans, different time and mileage quantities can be selected to expand coverage up to six years. Most extended service plans involve a preset deductible amount every time the vehicle is repaired.
Selecting an Extended Service Plan
When you choose your extended service plan, consider the following:
- Reputation of company providing the extended plan contract.
- Length and terms of coverage. Know what the extended service plan covers and doesn't cover. Find out if the contract covers both breakdown and wear and tear.
- Type of repairs covered.
- Type of company performing the repairs.
- Out-of-pocket expenses (who pays for the parts and labor?). You will want an extended service plan that pays the dealership directly.
- Cancellation and refund policy.
