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New car warranties have changed over the past generation. Manufacturers have extended very limited 12-month or 12,000 mile warranties into far more comprehensive offerings. Today's new cars typically come equipped with a 36-month or 36,000 mile warranty. Some manufacturers offer far more, carrying these warranties out even further. While an extended warranty is always an option for the new car owner, our focus is on the warranties that come with your car—a no-cost feature you may not even know you have.
So who offers the best new car warranty? Some people say Hyundai and Kia, as the Korean automaker cousins provide a 10-year, 100,000-mile powertrain warranty. This “powertrain limited warranty” covers the repair or replacement of powertrain parts (the engine, transmission and related components). If your engine blows a gasket or the transmission locks up, Hyundai has you covered at no cost to you.
Hyundai's warranty has been on the market for more than 10 years. It was introduced to ensure consumers that its vehicles were reliable, to remove concerns about its quality (something that dogged the automaker since its entry to the North American market). Since then, other manufacturers have made warranty changes as well, with GM coming close by offering a 5-year, 100,000-mile powertrain warranty for Chevrolet. Chrysler now offers a lifetime powertrain warranty on its new Jeep, Dodge, Chrysler and Ram vehicles—coverage that remains in place for as long as you own your car.
BMW has the best warranty for maintenance as its “BMW Maintenance Program” covers all normal maintenance from wear and tear—for the first four years or 50,000 miles of ownership. Included in this plan are oil changes, tire rotations, tune-ups, new wiper blades, fluids and more. BMW also gives owners the option to expand its coverage by two years and 50,000 miles, for a price.
The term “anti-perforation warranty” may not be familiar to new car shoppers, but it is a feature you want. With this warranty, your car is protected from under body corrosion (it typically does not cover surface corrosion). Hyundai and Kia offer a 7-year/ unlimited miles anti-perforation warranty. Lexus and Chevrolet cover you for six years. And Toyota, Ford and Honda have you covered for five years.
“New vehicle limited warranty” is a term that has different meanings for various manufacturers. In a nutshell, these warranties cover the repair or replacement of any component manufactured or originally installed by the automaker that has been found defective in material or factory workmanship, but under normal use and maintenance only. Cadillac, Hyundai and Lexus have 5-year, 60,000-mile limited warranties with Mercedes offering a 4-year, 50,000-mile warranty. Toyota, Honda, Nissan and Chevrolet offer 3-year, 36,000-mile limited warranties.
More manufacturers are now guaranteeing the residual value of your car 2, 3 or 4 years out. What this means is that if you buy a Hyundai Sonata in 2011 and pay $24,500 for your vehicle, Hyundai will value what your car will be worth in 2014 when you might be ready to trade it in. This sort of Hyundai “assurance” means you won't have to be concerned about possible market fluctuations. As long as your car is within the parameters set up by Hyundai, such as, mileage and wear and tear, you should be able to command the residual price later on. The Hyundai program follows one that is offered by BMW.
New car warranties are like “free money” as certain parts may be covered with some offering no deductible. Other warranties that may be offered include roadside assistance, emission defect and in the case of hybrid and electric vehicles, warranties on the battery system. With some cars so well covered, purchasing an extended warranty may be an added expense that you will be able to avoid.
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