These agreements are included in the purchase of a new car. In the event that you have a mechanical problem, the repair costs are paid for by the car maker. This benefit does not include paying for repairs caused by accident or every day use of the vehicle.
Coverage Inclusion and Limitations
In general, unexpected problems with the engine, suspension, electric system, computer, air conditioning, etc. are covered under the factory warranty. Normal wear and tear to tires, wiper blades or battery replacement would not be covered.
Factory Warranty Start Date
The manufacturer warranty begins on the day of sale of the vehicle. This is also referred to as the “in-service date”.
Auto Warranty Terms
The most common manufacturer warranty lasts for 3 years or 36,000 miles, whichever comes first. Some makes and models may provide longer coverage.
What about the powertrain warranty?
A powertrain warranty covers the engine, axle, drivetrain and transmission. The powertrain warranty is included in the original warranty. It is not uncommon for car makers to extend powertrain coverage beyond the other coverage benefit terms.
Manufacturer Warranty Expiration
When the factory warranty expires, you no longer have coverage. This means 100% of repair costs are your responsibility - even if a breakdown happened for no obvious reason.
For this reason, many car owners opt for an extended service contract to pick up where the manufacturer warranty ended.