Did you know that the average new car loses nearly 30% of its value in the first year of ownership? Protecting your investment with the right vehicle warranty is crucial. The best new car warranty plans offer long coverage terms to keep your vehicle protected as the years go by. Understanding the different types of warranties and how they work can help you make an informed decision when choosing the right vehicle and warranty for your needs.
This article will provide essential tips for choosing the best vehicle warranties when buying a new car, helping you save money and protect your investment in the long run.
Key Takeaways
- New vehicles from top automakers like Hyundai, Kia, Mitsubishi, Genesis, and Cadillac offer some of the best factory warranty coverage.
- Certified pre-owned (CPO) warranties from Mitsubishi, Hyundai, Kia, Lexus, and Honda provide comprehensive protection for used vehicles.
- Extended warranties can be purchased from dealerships or third-party providers, with coverage ranging from 150,000 to 300,000 miles.
- Factors to consider when evaluating warranties include the vehicle’s make, model, mileage, deductible, coverage level, and term length.
- Comprehensive warranty protection, including mechanical breakdown, wear and tear, and exclusionary coverage, offers the most comprehensive protection.
Understanding Vehicle Warranties
When purchasing a new car, the vehicle’s warranty is a critical factor to consider. A new car warranty is a contract between the buyer and the manufacturer, covering the cost of repairs due to defects in materials or workmanship. This comprehensive coverage includes a bumper-to-bumper warranty, which protects nearly all components of the vehicle, and a powertrain warranty, which safeguards the engine, transmission, and drivetrain.
Beyond the basic bumper-to-bumper and powertrain warranties, there are other types of coverage to be aware of, such as:
- Corrosion warranty – Protects against rust and corrosion
- Emissions warranty – Covers emissions-related components
- Paint and accessories warranty – Protects the vehicle’s paint and accessories
- Hybrid and electric vehicle battery warranty – Provides specialized coverage for the battery in hybrid and electric cars
Understanding the varying term lengths and components covered by each type of warranty is crucial when evaluating which new car offers the best protection for your needs. By familiarizing yourself with the different warranty options, you can make an informed decision and ensure your investment is well-protected.
Top Automakers with the Longest Warranties
When shopping for a new car, the warranty coverage is a crucial factor to consider. Fortunately, several leading automakers offer exceptional warranty protection that can provide peace of mind for drivers. According to our research, the brands that currently deliver the best new car warranties are Hyundai, Kia, Genesis, and Mitsubishi.
These manufacturers provide a bumper-to-bumper warranty of 5 years or 60,000 miles, along with a powertrain warranty of 10 years or 100,000 miles. This industry-leading coverage is significantly longer than the typical 3-year/36,000-mile bumper-to-bumper and 5-year/60,000-mile powertrain warranties offered by most automakers.
Other automakers with impressive warranty terms include Jaguar, Rivian, Tesla, and Lucid. Jaguar offers a 5-year/60,000-mile bumper-to-bumper and powertrain warranty, plus an 8-year/100,000-mile electric battery warranty. Rivian provides up to 5 years/60,000 miles of bumper-to-bumper coverage and up to 8 years/175,000 miles for the battery and drivetrain system. Tesla’s vehicles come with a 4-year/50,000-mile bumper-to-bumper warranty and up to 8 years/150,000 miles for the battery and drive unit, while Lucid includes a 4-year/50,000-mile bumper-to-bumper warranty and an 8-year/100,000-mile powertrain warranty.
When evaluating new car purchases, consumers should carefully compare the warranty details of different automakers to ensure they are getting the best protection for their investment.
Automaker | Bumper-to-Bumper Warranty | Powertrain Warranty |
---|---|---|
Hyundai | 5 years/60,000 miles | 10 years/100,000 miles |
Kia | 5 years/60,000 miles | 10 years/100,000 miles |
Genesis | 5 years/60,000 miles | 10 years/100,000 miles |
Mitsubishi | 5 years/60,000 miles | 10 years/100,000 miles |
Jaguar | 5 years/60,000 miles | 5 years/60,000 miles |
Rivian | Up to 5 years/60,000 miles | Up to 8 years/175,000 miles |
Tesla | 4 years/50,000 miles | Up to 8 years/150,000 miles |
Lucid | 4 years/50,000 miles | 8 years/100,000 miles |
Vehicle warranties, new car buying tips
Factors to Consider When Evaluating Warranties
When buying a new car, it’s crucial to carefully evaluate the manufacturer’s warranty to understand what is covered and for how long. Key factors to consider include the length of the bumper-to-bumper and powertrain coverage, as well as any additional perks like roadside assistance, corrosion protection, and hybrid/electric vehicle battery warranties.
Luxury vehicles from brands like BMW, Audi, Lexus, and Cadillac tend to have higher repair costs, making warranty coverage particularly important. Consumers should also consider their planned car ownership plans and how long they intend to keep the vehicle, as well as the manufacturer’s maintenance guidelines to ensure they don’t void the warranty.
New vehicles typically come with manufacturer’s warranties that last for 3 to 5 years. Extended warranties for new cars may be advisable for those planning to keep the car beyond the manufacturer’s warranty period, while used cars, especially without the manufacturer’s warranty, can benefit from extended warranties to guard against unexpected repair costs.
When evaluating extended warranties or vehicle service contracts, essential factors to consider include duration, mileage coverage, covered components, exclusions, deductibles, and additional benefits. It’s crucial to review the coverage details, understand the contract terms, and assess your risk tolerance to make an informed decision.
Warranty Type | Typical Coverage Duration | Covered Components | Additional Benefits |
---|---|---|---|
Bumper-to-Bumper | 3-5 years | Most vehicle components | Roadside assistance, rental car reimbursement |
Powertrain | 5-10 years | Engine, transmission, drivetrain | None |
Hybrid/Electric Battery | 8-10 years | Battery pack and related components | Mileage coverage |
Corrosion | 6-12 years | Body panels, frame | None |
Extending Your Warranty Coverage
While a new car’s factory warranty provides important protection, it may not be enough for those who plan to keep their vehicle beyond the standard coverage period. Extended warranties can be a valuable investment, especially for luxury models or vehicles expected to have higher vehicle repair costs down the road.
Pros and Cons of Extended Warranties
The primary pros of an extended warranty include continued protection against unexpected breakdowns and peace of mind for the vehicle owner. According to a survey, 88% of respondents considered coverage as the most significant factor in choosing a warranty provider.
However, the cons of extended warranties include the ongoing costs, which can range from $372 to over $2,000 with an average price of $977. Additionally, extended warranties often come with exclusions that can limit the coverage, and there’s a possibility that the extended warranty may not be needed if the vehicle proves to be reliable.
When considering an extended warranty, consumers should carefully weigh the pros and cons based on their specific needs and ownership plans. Factors influencing the cost of extended warranties include coverage level, deductible amount, warranty provider, the age of the vehicle, and the make and model of the car.
- The average annual cost of extended warranties ranges from $372 to over $2,000 with an average price of $977.
- 71% of warranty owners opted for a comprehensive, bumper-to-bumper plan.
- 35% of respondents wished for better or longer coverage, while 32% regretted not comparing more companies before purchasing.
“When surveyed on changes they’d make in the warranty-buying process, 35% of respondents wished for better or longer coverage, while 32% regretted not comparing more companies before purchasing.”
Warranty Exclusions and Limitations
When it comes to new car warranties, both factory and extended, it’s important to be aware of the exclusions and limitations. These warranties typically don’t cover damage caused by environmental factors, theft, vandalism, or accidents. Normal wear and tear on parts like tires, brakes, and windshield wipers is also generally not included under warranty.
Routine maintenance tasks, such as regular oil changes and tire rotations, are also typically excluded from warranty coverage. Consumers should carefully review the warranty details to understand exactly what is and isn’t covered to avoid any unexpected repair costs down the line.
Common Warranty Exclusions
- Environmental damage: Damage caused by natural disasters, weather, or other environmental factors is usually not covered.
- Theft and vandalism: Theft of the vehicle or intentional damage by others is typically excluded from warranty protection.
- Accidents and collisions: Repairs needed due to an accident or collision are generally not included in the warranty.
- Normal wear and tear: Routine wear and tear on parts like tires, brakes, and windshield wipers is not covered by most warranties.
- Routine maintenance: Regular maintenance tasks like oil changes and tire rotations are usually the responsibility of the vehicle owner.
Warranty Exclusion | Description |
---|---|
Environmental damage | Damage caused by natural disasters, weather, or other environmental factors |
Theft and vandalism | Theft of the vehicle or intentional damage by others |
Accidents and collisions | Repairs needed due to an accident or collision |
Normal wear and tear | Routine wear and tear on parts like tires, brakes, and windshield wipers |
Routine maintenance | Regular maintenance tasks like oil changes and tire rotations |
By understanding the limitations and exclusions of new car warranties, consumers can make informed decisions and avoid unexpected repair costs. It’s crucial to review the warranty details carefully before purchasing to ensure the coverage meets your needs.
Tips for Maintaining Your Warranty
To ensure the longevity of your new car’s warranty coverage, it’s crucial to follow the manufacturer’s recommended maintenance schedule and keep detailed service records. Using only authorized dealers or repair shops for any warranty-related work can also help maintain the validity of your coverage.
Additionally, being mindful of any actions that could be considered “abuse” of the vehicle, such as off-road driving or failure to properly maintain the car, is important to avoid voiding the warranty coverage. Consumers should also be aware of any changes in vehicle history that could impact the remaining warranty coverage.
According to the Bureau of Automotive Repair (BAR), proper repairs and regular maintenance can extend a vehicle’s life by years and save thousands of dollars. In California, auto shops must hold an automotive repair dealer license issued by BAR to perform vehicle repair and maintenance services for compensation.
“Under California’s Automotive Repair Act, consumers are entitled to receive an estimate before repairs, an invoice after repairs, and they can request the return of replaced parts.”
The majority of new vehicles come with an express manufacturer’s warranty, with dealerships also offering service contracts, sometimes called extended warranties, for both new and used vehicles. California Lemon Law covers new and used vehicles sold or leased in California that come with the manufacturer’s new vehicle warranty.
Safety recalls are issued by vehicle manufacturers or the National Highway Traffic Safety Administration (NHTSA) when an unreasonable safety risk is identified, and repairs must be made at no cost to the consumer.
Conclusion
Choosing the right vehicle warranty when purchasing a new car is an important decision that can save consumers money and provide peace of mind in the long run. By understanding the different types of warranties, evaluating the coverage terms and exclusions, and considering the pros and cons of extended warranties, buyers can make an informed choice that best fits their needs and ownership plans.
Following the manufacturer’s maintenance guidelines and properly caring for the vehicle are also crucial to ensure the warranty remains valid. With the right warranty in place, new car buyers can drive with confidence, knowing their investment is well-protected. Whether it’s a Porsche, BMW, or any other make and model, a comprehensive warranty can help offset the costs of unexpected repairs and keep your vehicle running smoothly for years to come.
Ultimately, the decision to purchase an extended warranty should be based on your circumstances, including the age and mileage of the vehicle, your driving habits, and your budget. By weighing the potential benefits against the associated costs, you can make a decision that aligns with your long-term ownership goals and provides the peace of mind you deserve when investing in a new car.
FAQ
What is a new car warranty?
A new vehicle warranty is a contract between the car buyer and the manufacturer that covers the cost of repairs due to defects in materials or workmanship. This includes a bumper-to-bumper warranty, which covers nearly all components of the vehicle, and a powertrain warranty, which protects the engine, transmission, and drivetrain.
What are the different types of warranties?
In addition to the bumper-to-bumper and powertrain warranties, other types of warranties may be included, such as corrosion protection, emissions coverage, paint and accessories warranties, and special coverage for hybrid and electric vehicle batteries.
Which automakers offer the best new car warranties?
According to our research, the automakers that currently offer the best new car warranties are Hyundai, Kia, Genesis, and Mitsubishi. These brands provide a bumper-to-bumper warranty of 5 years/60,000 miles and a powertrain warranty of 10 years/100,000 miles, which are among the longest coverage terms in the industry.
What factors should I consider when evaluating a new car’s warranty?
When buying a new car, it’s important to carefully evaluate the manufacturer’s warranty to understand what is covered and for how long. Factors to consider include the length of the bumper-to-bumper and powertrain coverage, as well as any additional perks like roadside assistance, corrosion protection, and hybrid/electric vehicle battery warranties.
What are the pros and cons of an extended warranty?
The pros of an extended warranty include continued protection against unexpected breakdowns and peace of mind. However, the cons include the ongoing costs, exclusions, and the possibility that the extended warranty may not be needed if the vehicle proves reliable. Consumers should carefully weigh the pros and cons of extended coverage based on their specific needs and ownership plans.
What are the common exclusions and limitations of new car warranties?
New car warranties, both factory and extended, come with exclusions and limitations. These typically include damage caused by environmental factors, theft, vandalism, accidents, and normal wear and tear on parts like tires, brakes, and windshield wipers. Routine maintenance items, such as oil changes and tire rotations, are also generally not covered under warranty.
How can I ensure my new car’s warranty remains valid?
To ensure the longevity of a new car’s warranty coverage, owners must follow the manufacturer’s recommended maintenance schedule and keep detailed service records. Using only authorized dealerships or repair shops for any warranty-related work can also help maintain the validity of the coverage.