With average new-vehicle prices approaching $50,000, the importance of new-car warranties cannot be overstated. These warranties serve as a critical safeguard against unexpected expenses that could strain a family’s budget. Modern vehicles often feature complex and expensive components such as hybrid systems, advanced electronics, and high-voltage batteries, which can be costly to repair or replace.
Types of Warranties
New-car warranties typically encompass four primary areas of coverage, each with potentially different durations:
- Bumper-to-Bumper Warranty: This comprehensive warranty covers the entire vehicle, excluding normal wear items like filters, wiper blades, and brake pads. Separate coverage often applies to rust and tires, which are usually backed by a tiremaker warranty.
- Powertrain Warranty: This coverage focuses on the engine, transmission, and drivetrain components, often extending for a longer period than the bumper-to-bumper warranty. It also includes components in drive systems for electric vehicles and hybrids.
- Roadside Assistance: Details vary, but this service provides help if you become stranded due to a vehicle problem.
- Emissions Equipment and High-Voltage Batteries: These components are subject to federal and state regulations. For all-electric vehicles, federal rules mandate at least eight years or 100,000 miles of coverage against battery failure. Some manufacturers offer longer coverage periods.
Key Considerations
- Duration: Warranty duration is specified by years or miles from the vehicle’s delivery date, ending when either limit is reached.
- Transferability: Some warranties allow unexpired coverage to transfer to new owners if the vehicle is sold or gifted.
- Exceptions and Exclusions: All new-vehicle warranties list exceptions and exclusions, hence being called ‘limited warranties.’ Aftermarket equipment or vehicle modifications can cause warranty issues.
- Maintenance: Most warranties require owners to keep up with scheduled maintenance, though this doesn’t have to be done at the dealership. Owners must keep their own records if maintenance is performed elsewhere.
Best and Above-Average Warranties
Several manufacturers offer standout warranty coverage:
- Fisker: 6 years/60,000 miles bumper-to-bumper, 10 years/100,000 miles powertrain and battery
- Hyundai, Genesis, Kia: 5 years/60,000 miles bumper-to-bumper, 10 years/100,000 miles powertrain
- Rivian: Varies by model, up to 8 years/175,000 miles for powertrain and battery
Other brands offering above-average coverage include Acura, Cadillac, and Tesla, with varying terms for different models.
Industry-Average Warranties
Mainstream brands typically offer 3 years/36,000 miles bumper-to-bumper and 5 years/60,000 miles powertrain coverage. Premium brands often provide 4 years/50,000 miles for both.
Extended Warranties
Extended warranties, often sold by dealers, provide additional coverage after the original warranty expires. These are separate insurance policies, not extensions of the original warranty. Cars.com offers guidance on whether extended warranties are worth considering.
By understanding the nuances of new-car warranties, buyers can make more informed decisions and potentially save money in the long run.
