Facts About Factory, Bumper-To-Bumper And Powertrain Warranties vs Extended Service Contracts:
Occasionally, confusion arises when "auto warranties" or "service contract" are being discussed. For many consumers, they believe they are the same thing but unfortunately, that is a misconception. For example, brake pad change is unlikely to be included in a vehicle service contract – but there are exceptions where a warranty may cover that wear and tear item. Also, powertrain service contracts apply only to certain car parts and exclude others. So what is covered and when? Let’s look at some common terms and clear up the confusion.
Factory And Bumper-To-Bumper
You might have heard the terms “factory” or “bumper-to-bumper” when referring to a new car warranty. This coverage comes included with the purchase of the vehicle. These warranties are described in terms of duration and mileage, for example, "3/36" meaning 3 years or 36,000 miles, whichever comes first. This is not a separate item that you need to pay for. It is included in the cost of the vehicle.
When you buy a new car nearly the entire vehicle is covered for unforeseen mechanical problems. This means if the engine starts to fail for no reason during the coverage period. the repairs are paid for by the dealer. These coverages expire though and not covered for the entire time that you own the vehicle. This is where an extended service contract would be beneficial in order to broaden the coverage period.
Not all used cars are covered for every type of part failure. The selling dealer may offer a limited warranty but pay attention to the details, understanding your responsibilities and what is and is not covered under the coverage plan is crucial. A service contract or protection plan can be offered to help you with the cost of unexpected breakdown.
Powertrain Warranty
The powertrain warranty is typically included in the new car purchase. It covers specific auto parts and often has longer terms than the bumper-to-bumper warranty. For example, it might be extended to 5 years or 60,000 miles or even more with some dealers. In general, the powertrain warranty covers the:
- Engine (cylinder block, cylinder heads, fuel pump, engine mounts,
injection pump, manifold, oil pump, seals & gaskets, thermostat, timing chain, etc.)
- Transmission (clutch cover, seals & gaskets, torque converter, transfer case, transmission case, transmission mounts, etc.)
- Front and rear wheel drive components (axle shafts, bearings, support bearings, drive axle housing, drive shaft, propeller shafts, retainers, support, seals & gaskets, universal & constant velocity joints, etc.)
If your factory warranty has expired, these components are no longer covered. It is strongly encouraged to purchase an extended coverage for your peace of mind and your wallet.
Get a free online extended warranty quote from CARCHEX now.
What’s Not Covered In Auto Warranties/Vehicle Service Contracts?
In general, auto warranties do not cover:
- Accident or collision damage
- Car wash damage
- Vandalism or theft
- Fire or chemical spills
- Damage due to misuse
- Dings, dents, and paint chips
- Road salt damage
- Environmental damage (e.g. tree sap, bird droppings)
- Damage due to natural disasters or hail
Furthermore, normal maintenance is not covered either, such as:
- Oil, fluid, and filter changes
- Tire rotation and alignment
- Wiper blade change
- Brake pad replacement
- Clutch lining
- Cleaning, detailing, polishing
What Are The Exceptions?
Usually windshield stress cracks are not covered. However, some factory warranties will cover stress crack repair within the first 12 months or 12,000 miles of use. Also, some dealers provide wiper blade replacement during the first six months of driving, regardless of the miles driven. Finally, wheel alignment, tire balancing, and brake pad/lining replacement might be covered under factory warranty for the first 12 months or 12,000 -18,000 miles depending on the dealer.
Conclusion
Car warranties are a great benefit to cover unexpected breakdown problems, however, it is important to know what is covered and what is not. If your car factory warranty has expired or will be expiring or you're purchasing a used car, it would be strongly encouraged to purchase an extended vehicle protection plan. These plans are can be nearly identical to the original factory warranty and will pay unexpected car repair costs.