New Car Warranty
Here is some general information on New Car Warranties.
Bumper to Bumper Warranties
Extended New Car Warranties
Warranties can be backed by the dealer or the manufacturer—the latter is preferable, since dealers sometimes go out of business. You should also find out exactly what repairs and/or maintenance costs the warranty covers. Warranties on a new car can be anywhere from three years to five years. .
New car warranties come in two parts, namely a general warranty and power train warranty. A general warranty covers all the damages that occur from bumper to bumper, while a powertrain warranty covers an extended period of time. New car warranties have been lengthened and coverage is at least three years (36,000 miles) for all vehicles, and for premium cars it can be twice as long. There is usually rust and corrosion protection that lasts even longer and roadside assistance coverage as well. New car warranties are comprehensive and most cover every part of the vehicle for at least the first 12 months or 12,000 miles. After that, various warranties are offered for the different parts of a car.
Coverage will usually last for a handful of years above and beyond the manufacturer's warranty and is often more lenient in terms of limited terms and conditions. Coverage under this portion of a new car warranty begins after the Basic Warranty expires and normally consists of coverage for the engine, transmission and drive axles only. Be sure to check the specific components covered in the owner's manual. Coverage varies, so make sure yours covers the major components (engine, transmission/ transaxle assembly, drive train). Have the salesperson list the systems and components that are and aren't covered, directly on the warranty document that you both sign and receive.
Bumper to Bumper warranties
Bumper-to-bumper warranties usually expire faster than powertrain warranties. American and Japanese cars typically come with a 3 year/36,000 mile warranty while luxury and more upscale brands carry a 4 year/50,000 mile warranty. Bumper to Bumper warranties are not what you would expect with many leaving out moving parts, motors, etc.
Extended warranties are frequently found on used luxury cars - which are often sold as certified pre-owned vehicles. These certified pre-owned programs gained in popularity as "gently-used" leased cars became available as used cars. Extended warranties are commonly sold by dealers. But be aware that dealers resell warranty packages from independent companies, and make a huge profit in the price markup.
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