Manufacturer Warranties
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- statistical tools for automotive finance managers are listed for informational purposes only -
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- for exact details, exclusions, exceptions, transfer eligibility & fees, etc, please contact the manufacturer -
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What's covered?
A Basic Limited Factory Warranty is a bumper-to-bumper, comprehensive, factory-backed, new car warranty. A Powertrain Limited Factory Warranty covers engine, transmission, and driveline components built and assembled by the auto manufacturer at the manufacturing plant. What's not covered?
Common items not covered by a new car factory warranty are the car's brake pads, shoes, rotors and drums; the manual clutch assembly; the tires; the battery; and any aftermarket items installed after the new car left the factory. Auto manufacturer warranties also do not cover malfunctions resulting from misuse, e.g., if the radio stops working because mustard was squirted into the CD slot; or malfunctions resulting from aftermarket modifications. Why is it called
Basic and Limited? Because it covers all the basic components built and assembled by the auto manufacturer at the manufacturing plant; and is limited to a specific time and mileage. |
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When does it begin and end?
Automotive manufacturer warranties begin on the date and mileage when the new car is sold to the original owner (called the in-service date). The time and mileage vary depending on the auto manufacturer. For example, a 3-year / 36,000-mile Basic Factory Warranty expires 3 years from the in-service date, or 36,000 miles from the in-service mileage (whichever comes first). If that same new car also has a 5-year / 60,000-mile Powertrain Limited Warranty; then the engine, transmission, and driveline coverage would continue for 2 years or 24,000 miles after the Basic Factory Warranty expires. |
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New Car Factory Warranty FAQ
Is there a co-pay?
A Basic Factory Warranty does not have a co-pay (called a deductible). The cost of repairs, including parts and labor, are covered by the automotive manufacturer with zero out-of-pocket expense to the owner. Powertrain Factory Warranty deductibles range from $0 to $100 depending on the auto manufacturer.
A Basic Factory Warranty does not have a co-pay (called a deductible). The cost of repairs, including parts and labor, are covered by the automotive manufacturer with zero out-of-pocket expense to the owner. Powertrain Factory Warranty deductibles range from $0 to $100 depending on the auto manufacturer.
What voids a new car factory warranty?
The following will permanently void a car manufacturer’s warranties:
Flagrant misuse, e.g., if on a camping trip your vehicle is submerged in a river.
Natural disasters resulting in damage to your car, e.g., if in a hurricane your vehicle is submerged in water. Evidence of a tampered odometer.
Salvage title, i.e., if the car was totaled and rebuilt.
Failure to perform proper maintenance.
Change of ownership without a transfer will void the Powertrain Warranty.
Are factory warranties transferable?
Basic Factory Warranties stay with the vehicle and transfer automatically to subsequent owners without any fees or registration. Powertrain Factory Warranties are typically for the first owner, but may transfer for a fee. Powertrain Warranties rarely transfer automatically; second owners should always contact the manufacturer to inquire about the status and transferability of a Powertrain Warranty.
Must maintenance be done at a factory dealership to maintain the manufacturer warranties?
No. It is unlawful for a manufacturer to void a warranty if maintenance is not performed at one of their facilities. However, warranties can be voided if proper maintenance is not done. One industry insider with 7 years experience informed F&I Tools that this happened only once at his dealership, and that was because a client's engine seized after the oil wasn’t changed for 65,000 miles. In general, if improper maintenance is the cause of a malfunction, then repairs will not be covered by the manufacturer's warranty; but these cases are rare.
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