Decoding New Car Warranties: What You Need to Know
With the average price of a new vehicle hovering near $50,000, stretching budgets to afford them, your new-car warranty is more important than ever. It’s a form of insurance against those unexpected repair bills that can quickly derail finances. Modern cars are packed with technology, often including components like hybrid systems, complex electronics, and high-voltage batteries, that can be expensive to fix.
Understanding the warranty’s details is essential for new car buyers. There is no standardized warranty, and it’s important to pay close attention to a vehicle’s warranty to understand what is covered and the duration of that coverage.
Key Warranty Considerations
- Duration: Warranties specify coverage in terms of years or miles, whichever comes first.
- Loan Length: The average new-car loan term was over 68 months in 2023, meaning your warranty’s duration often directly impacts how long you’re making payments.
- Transferability: Some allow unexpired coverage to transfer to a new owner, which can enhance resale value.
- Separate Durations: Certain components may have different warranty lengths.
- Exceptions and Exclusions: New-car warranties are limited, always listing exceptions. Aftermarket equipment and modifications can also void coverage.
- Maintenance Requirements: Most warranties require adherence to scheduled maintenance, although it doesn’t have to be performed at the dealership, keep records.
Types of Warranties
New-car warranties typically cover four main areas, with varying durations:
- Bumper-to-Bumper: Covers the entire vehicle, excluding wear-and-tear items like filters and brake pads. Tires are typically covered by a tiremaker warranty.
- Powertrain: Covers the engine, transmission, and drivetrain components. This can extend to hybrid and electric vehicle (EV) drive systems.
- Roadside Assistance: Provides assistance if you’re stranded.
- Emissions Equipment and High-Voltage Batteries: These are regulated by federal and state laws. High-voltage batteries in EVs and hybrids are particularly expensive. Federal rules mandate coverage against failure for eight years or 100,000 miles. Some automakers offer longer coverage, and some warranties protect against battery capacity decline over time, typically guaranteeing a minimum capacity retention.
Best Warranties
These brands offer stronger-than-average coverage for bumper-to-bumper and powertrain warranties.
- Fisker: 6 years/60,000 miles bumper-to-bumper and roadside assistance, 10 years/100,000 miles powertrain and battery (75% battery capacity retention).
- Hyundai, Genesis, Kia: Bumper-to-bumper: 5 years/60,000 miles; Powertrain: 10 years/100,000 miles; Roadside Assistance: 5 years, unlimited miles (60,000 miles for Kia). EVs and hybrids: 10 years/100,000 miles for drive battery and drive system components/EV battery capacity retention of at least 70%.
- Mitsubishi: 5 years/60,000 miles bumper-to-bumper; 10 years/100,000 miles powertrain (including Outlander PHEV battery), 5 years of roadside assistance with no mileage cap.
- Rivian: 5 years/60,000 miles bumper-to-bumper and roadside assistance (quad-motor models); 4 years/50,000 miles for other configurations; Powertrain and battery: 8 years/175,000 miles (quad-motor), 8 years/150,000 miles (dual-motor with Large or Max battery), or 8 years/120,000 miles (Standard or Standard+ battery). All cover at least 70% battery capacity retention.
Above-Average Warranties
These offer better-than-average coverage in various areas:
- Acura: 4 years/50,000 miles bumper-to-bumper and roadside assistance, 6 years/70,000 miles powertrain. ZDX EV battery: 8 years/100,000 miles.
- Cadillac: 4 years/50,000 miles bumper-to-bumper, 6 years/70,000 miles powertrain and roadside assistance. EV batteries (and EV towing assistance): 8 years/100,000 miles (75% capacity retention).
- Ineos: 5 years/60,000 miles bumper-to-bumper and powertrain coverage.
- Infiniti: 4 years/60,000 miles bumper-to-bumper; 6 years/70,000 miles powertrain; 4 years roadside assistance (no mileage cap).
- Jaguar: 5 years/60,000 miles bumper-to-bumper, powertrain, and roadside assistance; 8 years/100,000 miles EV battery (70% capacity retention).
- Lexus: 4 years/50,000 miles bumper-to-bumper; 6 years/70,000 miles powertrain; 8 years/100,000 miles hybrid system components; 10 years/150,000 miles hybrid batteries. Roadside assistance: 4 years (first owner, no mileage cap).
- Lincoln: 4 years/50,000 miles bumper-to-bumper; 6 years/70,000 miles powertrain; Roadside assistance (no caps for the first owner); Hybrid system components and batteries: 8 years/100,000 miles (10 years/150,000 miles in California and some states following California emissions rules).
- Tesla: 4 years/50,000 miles bumper-to-bumper and roadside assistance. Electric drive units and battery packs: 8 years/150,000 miles (Model S, Model X, Cybertruck); 8 years/120,000 miles (Model 3 and Model Y Long Range and Performance); 8 years/100,000 miles (Model 3 Standard/Standard Range Plus). All battery warranties guarantee at least 70% capacity retention.
Industry-Average Warranties
These brands provide typical coverage, usually with 3 years bumper-to-bumper and 5 years powertrain for mainstream brands, and 4 years for both for premium brands, plus some roadside assistance.
- Alfa Romeo
- Audi
- BMW
- Buick
- Chevrolet
- Chrysler
- Dodge
- Fiat
- Ford
- GMC
- Honda
- Jeep, Wagoneer
- Land Rover
- Lucid
- Mazda
- Mercedes-Benz
- Mini
- Nissan
- Polestar
- Porsche
- Ram
- Subaru
- Toyota
- Volkswagen
- Volvo
Extended Warranties
Extended warranties are separate insurance policies covering a vehicle’s issues beyond the original warranty period and are often sold by dealerships. They might be provided by the automaker, a third party, or the dealer. These are not a direct extension of the factory warranty. Do your research to decide if this is right for you.
