Most new cars come with a warranty included in the purchase price. A warranty is essentially a promise from your car's manufacturer or dealer that they will, for a set period of time, pay to fix certain defects or make necessary repairs.
New-car warranties generally cover vehicles for at least three years or 36,000 miles. However, some cars come with even longer warranties — up to five years or 60,000 miles.
In many cases, getting repairs made under your car's warranty is simple. But sometimes, manufacturers or dealers refuse to honor their promise. You may be told that repairs aren't part of the contract or that you've done something to void the warranty. That's why the Federal Trade Commission (FTC) recommends learning as much as possible about the warranty you have or that comes with the car you're are considering buying.
Types of Car Warranties
New car purchases typically include one or more of the following warranties:
- Bumper-to-bumper. This provides general coverage for all factory-installed parts in your car including your air conditioning, audio and other electronics. Despite its name, this contract doesn't cover damage to your car's bumpers, which are considered body panels and are exempt.
- Power train. This is perhaps the most valuable type of car warranty. It covers any parts or systems that transmit power to your car's wheels, including the engine, transmission, differential and driveshaft. These are usually the most expensive car parts to repair or replace if they fail.
- Other warranties: Depending on your dealer or manufacturer, you may also be offered a rust/corrosion warranty (in case the metal parts of your car rust within the contract period) or roadside assistance benefits. (The latter isn't actually a warranty, but an agreement to pay for towing and tire-changing services should you ever need them.)
How to Get Warranty Service
If a warranty-covered part of your car breaks down during your contract period, take your car to your dealer or repair shop of choice. You should let the shop know you believe the repair is covered by your warranty; however, many reputable shops automatically check warranty options.
Car owners typically pay nothing for repairs or replacements that are covered under their warranty. The auto shop or dealer does the work, and the manufacturer or dealer reimburses the shop for the services and parts.
An important point: You don't have to get your routine car maintenance work done at your car dealership. You can work with an independent auto shop — or even perform routine services yourself. Your manufacturer can't claim that you have "voided" your warranty by using a shop other than the dealership.
If you're eligible for warranty-reimbursed repairs, however, your manufacturer/dealer can insist that you go to a shop of their choice. Otherwise you may have to pay for all or part of the work that would have been fully covered by your warranty contract.
Ways to Avoid Warranty Headaches
- Perform routine maintenance. This is a good idea for all car owners. However, it's critical for owners with warranties. One of the ways to ensure you get repairs covered under your warranty contract is to show proof that you've taken good care of your car.
- Keep all receipts and service records. In case you take your car in for a warranty issue and your manufacturer or dealer says you didn't properly maintain the car, you'll have the paperwork to prove otherwise. Keep your receipts and records for at least the warranty period. Better yet, keep them for as long as you own your car.
- Watch your warranty period. If you know your contract is about to expire, consider getting your car serviced. If your auto shop finds any necessary repairs, you may be able to get them done at no cost before your warranty ends.
- Don't take no for an answer. If your warranty holder argues that a particular repair isn't covered but you think it should be, don't immediately give up. Take your concern to a service manager or the manufacturer. Or contact the FTC or your state's Attorney General's office for help.
- Understand the difference between an original warranty and extended warranty. A service contract, or extended warranty, is a product your salesperson may try to sell you for an extra fee when you buy your car. These products aren't necessarily a good deal. For one thing, an extended warranty may overlap your car's main warranty. In addition, extended warranties aren't actually considered true warranties under federal law. If you run into a dispute about your coverage, it may be more difficult to get the contract enforced. Learn about extended warranties at FTC.gov by searching for "Auto Service Contracts and Warranties."
A warranty is great to have when you understand what you're getting, and when the dealer or manufacturer honors the contract properly. Take the time to find to out what's actually covered so you can eliminate unpleasant and expensive surprises. An honest dealer should go over the details with you before you plunk down a single dollar to buy a car. If a dealer won't do that, it may be time to run — not walk — away.
