Factory Warranty Guide: Coverage and Term Lengths

What is a factory warranty?

A factory warranty, also known as a manufacturer’s warranty, comes with every new vehicle sold in the U.S. These warranties are provided by the company that made your vehicle, which separates them from dealer warranties or warranties from independent warranty companies selling vehicle service contracts.

These warranties follow the vehicle, not the owner, so it’s also possible to purchase a pre-owned vehicle with a factory warranty remaining.

» MORE: Learn how vehicle service contracts work

When does factory warranty coverage start and expire?

Factory warranty coverage begins on the in-service date, or the day you first buy or lease the vehicle. It expires within the set time or mileage limit. For example, if your factory warranty is five years or 60,000 miles, the warranty expires after five years or when your car hits 60,000 miles, whichever comes first.

Does factory warranty coverage transfer to the second owner?

Warranties stay with the vehicle for the life of the warranty, even when the owner changes. Some warranties automatically transfer to the second owner when the vehicle is sold, but others may require a warranty transfer process and fee. If you're buying a used car, make sure to ask about the warranty: How much time is left, and does it automatically transfer? We recommend also asking for maintenance records to confirm the vehicle was properly taken care of, since neglect can lead to denied claims.

What do factory warranties cover?

Auto warranties generally only cover manufacturing defects. So, if a part fails on its own and needs to be repaired, it should generally be covered under a bumper-to-bumper or powertrain warranty. For example, if your engine or transmission suddenly fails out of nowhere, your warranty should cover repairs or replacement.

What factory warranties don’t cover

While factory warranties can offer a lot of protection, there are several things they typically don’t cover:

• Routine maintenance like oil changes, tire rotations and brake pads
• Wear-and-tear items such as windshield wipers, tires and brake rotors
• Cosmetic damage including paint scratches and upholstery stains
• Damage caused by accidents, misuse or lack of proper maintenance
• Aftermarket parts or modifications that affect performance or reliability
• Environmental damage such as hail, flooding or road salt corrosion

To keep your warranty in good standing, you'll need to follow the manufacturer's recommended schedule for maintenance. You don't need to go to the dealership — you can choose your own licensed maintenance or repair shop in most cases — but you should keep a thorough record of your vehicle's maintenance. If an issue with your car is caused by improper care, your claim could be denied even if your warranty is still active.

Types of factory warranty coverage

Factory warranties typically come with at least bumper-to-bumper and powertrain warranties, though they may come with other types of warranties.

Bumper-to-bumper warranties

With factory warranties, you’ll generally get at least three years or 36,000 miles of bumper-to-bumper coverage. Bumper-to-bumper warranties cover the vast majority of the parts on your car, with just a few exceptions.

Powertrain warranties

Factory warranties typically provide five years or 60,000 miles of powertrain coverage. Powertrain warranties typically only cover your engine, transmission and drivetrain.

Corrosion or anti-perforation warranties

Corrosion or anti-perforation warranties protect the car’s body panels from rust building up inside the paint.

Battery warranties

Battery warranties guarantee the traction batteries inside hybrids, plug-in hybrids and electric vehicles (EVs), usually for at least eight years or 100,000 miles.

Accessory warranties

Accessory warranties cover any accessories that were purchased from the manufacturer, such as tow hitches or floor mats.

Additional factory warranty perks

Some factory warranties provide additional perks on top of the coverages mentioned above. This may include benefits like complimentary maintenance or oil changes for the first year you own the car. You may also receive free roadside assistance or towing for a set period of time. Review your warranty information to see which additional benefits are included with your factory warranty and for how long, so you can reduce your out-of-pocket spending.

Should you get more warranty coverage?

If you’d like additional coverage beyond what your factory warranty provides, you have two main options:

• Certified pre-owned (CPO) warranties: CPO warranties come with certified pre-owned vehicles, and typically extend the factory bumper-to-bumper warranty by one year or 12,000 miles.
• Extended warranties: Extended auto warranties are available from car manufacturers and third-party warranty companies, and they come in a variety of different coverage levels and term lengths.

Whether spending extra for more warranty protection is worth the cost or not depends on your personal situation and preferences. For example, the average bumper-to-bumper extended warranty costs around $1,000 per year of coverage, but it might be worth it if you drive a vehicle with below-average expected reliability or if you want peace of mind. If nothing ever goes wrong with your vehicle, an extended warranty would cost you more than it saves you.

For Veronica, a reviewer from Maryland, getting an extended warranty was worth the cost. She said: “When I had a $4,000 issue with one of my former vehicles, Endurance covered the entire balance except for $100.”

» MORE: When does an extended warranty make sense?

Factory warranty coverage by automaker

Below is a table comparing major automakers’ bumper-to-bumper and powertrain warranties.

Note: Although some automakers don’t offer a separate powertrain warranty, they may cover powertrain components in their standard factory warranty.

FAQ

Bottom line

Understanding what’s covered and not covered with factory warranties can help you decide whether you need extra or extended coverage. Before getting additional coverage, check whether your car is still under warranty and what’s covered so you don’t purchase coverage you don’t need.