Gonna Be A While? Grab A Auto Warranty.
If you’ve ever bought a new car or one with reasonably low mileage from a dealer, chances are good that it came with some kind of warranty protection. While not a guarantee of perfection, the warranty at least gives you some peace of mind. If you’re shopping for a new or used car, the salesperson may encourage you to buy an auto service contract to help protect against unexpected or costly repairs. While a service contract may sound like a good idea, it may overlap with the vehicle’s existing manufacturer’s warranty. So before you spend the extra money, do some research to see if an auto service contract makes sense. Coverage varies widely.
Auto service contracts are sold by vehicle manufacturers, auto dealers, and independent providers. If you’re considering a service contract, shop around so you understand exactly what you’re buying.
What Is A Factory Warranty?
The factory warranty is a warranty covered through the car manufacturer to pays for repairs within a specific time frame and/or mileage after the purchase of the car. Factory warranties most commonly apply to new cars and may include a powertrain warranty, maintenance, corrosion, and emissions coverage. Factory warranties are different from other kinds of warranties because they are backed by the actual manufacturer. A big difference between a factory warranty and a manufacturer warranty is that you don’t have to pay for a standard factory warranty. It is automatically included with your new car, though some forms may require a deductible for certain repairs.
Today, practically all brands offer manufacturer’s warranties on new cars. What these warranties cover differs between makes and models, but the basics are similar. Since major car brands are competing in the same marketplace, shoppers expect that most factory warranties will offer similar core coverage, though the details can differ between brands.
Other Parts Of The Factory Warranty
There are a few more coverage types that can come with a manufacturer warranty. These include:
Before you decide if the cost is worth it, there are some disadvantages to consider, as well.
- This warranty covers the cost of replacing sheet metal that has rusted through. It usually requires a hole to have formed in the metal, and it may not cover surface rust. Corrosion coverage can vary between different parts of the car.
- Many brands today offer roadside assistance. These programs can be tied to the powertrain warranty period, or they can have a separate duration. Some may also require deductibles or only offer allowances toward roadside assistance.
- Federal law requires emissions parts to be covered for defects. Most emissions parts are required to be covered for 2 years or 24,000 miles, though some parts like the catalytic converter or emissions control unit are covered for 8 years or 100,000 miles. Manufacturers can follow the minimum guidelines or offer more coverage for these parts.
- Some auto brands cover regular maintenance for a period of time. This coverage is usually short in duration. For example, Toyota covers regular maintenance on new cars for 2 years or 25,000 miles.