car warranties
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Understanding Different Car Warranties and What They Cover

When you buy a new – and sometimes a used – vehicle, you get a warranty with it. Many times, the salesperson will say this car comes with a 36-month/36,000-mile warranty or whatever timeline the coverage is for. However, there is much more to know about the warranty that comes with your vehicle.

New Car Warranties

Most new vehicles come with multiple warranties. Comprehensive coverage, also known as bumper-to-bumper, is the one most people know about. Surprisingly, this is only part of the coverage that comes with your new vehicle.

First, you should understand that new car warranties are factory warranties, which means they are covered by the company that manufactured the vehicle. Bumper-to-bumper coverage means that nearly every part of the vehicle is protected. If anything stops working or doesn’t work correctly during the warranty period, it is repaired or replaced free of charge to the owner.

This warranty does usually exclude any parts that need to be replaced due to wear and tear, such as oil filters, brake pads, and wiper blades. Some brands do include maintenance for 12 months or another period in the warranty coverage.

Other Factory Coverage

Another type of coverage you get with a new vehicle is a warranty for your powertrain, which includes the engine and transmission, along with related components. This warranty lists every part that is included in the coverage. And it usually goes longer than the bumper-to-bumper warranties.

Manufacturers may also include some type of rust corrosion warranty and a special warranty for hybrid models. These warranties only cover the designated components for a specific time. Electric batteries come with their own warranties as well, which means you shouldn’t have to replace the battery for that length of time.

Coverage for Other Parts

Certain components of your vehicle will come with their own warranties from the manufacturer. Some examples are the tires and battery on a gasoline vehicle. Both of these components are warrantied separately by their manufacturer. Tires are covered based on miles rather than years while batteries are usually protected for a certain number of years.

With these components, the warranty is a sliding scale. At first, the part receives full coverage. After the initial period, the manufacturer provides partial coverage. For instance, after three years, they may pay half the cost of replacement with the customer being responsible for the other half. It’s helpful to know the types car warranties, so you know what you’re responsible for. 

Used Vehicle Warranties

Used vehicles don’t come equipped with car warranties. Although, some dealers offer one. Usually, they are for a shorter period of time and may only cover certain components. They can range from 12 months or 12,000 miles for newer models to 30 days and 1,000 miles for an older vehicle. The purpose of these warranties is to show that the vehicle weas in operating condition at the time of sale.

If the vehicle is newer and Certified Pre-Owned (CPO) model, you will get more coverage. Protection usually includes the powertrain and lasts for 12 months or 12,000 miles. Each manufacturer sets their own limits for CPO vehicles. If the CPO vehicle is still under the original manufacturer’s warranty, that coverage takes precedence. Any other warranty doesn’t start until it runs out, which makes CPO models a good deal for buyers.

Extended Car Warranties

An extended warranty is coverage you purchase at the time of sale on a new or used vehicle. It extends the original warranty to the specified time. For instance, a car with an original warranty of 5 years/60,000 miles may qualify for an extended warranty with coverage up to 100,000 miles.

One of the most important things to know about an extended warranty is that it may not cover all the same components as the original warranty. These warranties usually focus on the powertrain and other specific components rather than bumper-to-bumper. You’ll also probably have a deductible for each repair, unlike with the original warranty. Prices for the deductible can vary based on the company providing the coverage.

When looking at warranties for your new or used vehicle, it’s evident there are multiple things to consider. While these warranties can provide peace of mind, they only work when you use them correctly.

 

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Joyce Morse Farinella
Hello! My name’s Joyce Morse Farinella and I’m a full-time writer who loves to research interesting and strange topics and explain them to others. I also enjoy hanging out with my daughter and being a foster parent. I love to travel and hang out at home, getting writing inspiration from both."

    1 Comment

    1. This article is great, it helped me understand that car manufacturers as well as car dealerships do as much as they can to soften the blow on repair and maintenance costs.

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