How the Manufacturer Car Warranty Really Works

In today’s world, a warranty is no longer a luxury – it’s a standard. Every major car manufacturer has to guarantee that all parts and mechanics of a new vehicle will function as advertised – as long as the owner takes good care of it. This guarantee protects the buyer from having to pay for problems that could occur shortly after the purchase.

Every vehicle should come with a basic warranty and a powertrain warranty. There are additional inclusions such as corrosion and roadside assistance warranties, as well as a battery warranty for a hybrid or an electric car.

The manufacturer warranty, which comes standard with all new car purchases, will protect the vehicle usually anywhere from one to five years after the purchase and within a certain kilometre limit.

Are All Warranties the Same?

Most warranties are different and dependent on the manufacturer and the vehicle being purchased. While there is no predetermined set time limit or kilometre allowance, most vehicles in Canada come with similar protection, though there are a few notable exceptions. A warranty can be an important consideration for a new vehicle purchase and manufacturers want to remain competitive with the warranties they offer.

a. Basic or “Bumper-to-Bumper” Warranty

Basic warranty is the portion of the manufacturer warranty that covers all the parts, systems and components of the vehicle. Dealerships will use the term “bumper-to-bumper” to highlight the significance that this warranty will cover anything and everything in the vehicle. Like any warranty, this is only for a pre-set amount of time or kilometres. A common Canadian manufacturer exclusionary warranty range covers a vehicle for three years/60,000 kilometres or four years/80,000 kilometres. Like any warranty, the “bumper-to-bumper” warranty has certain exclusions that the buyer needs to be aware of, which should be clearly listed in the warranty protection plan. Common exclusions include moldings, weather-stripping, maintenance costs and, at times, different parts.

b. Powertrain Warranty

A powertrain warranty is the portion of the manufacturer warranty that covers the mechanics that make the vehicle run. The powertrain warranty covers major components of the vehicle such as the main engine, drive axels, transmission and more. This warranty has a pre-set amount of time or kilometres, but often lasts much longer than the exclusionary warranty. Some manufacturers go as far as to offer lifetime warranties on components of the powertrain, but a more common Canadian figure would be five years/160,000 kilometres. When analyzing the powertrain warranty, it is important to thoroughly examine how the manufacturer treats different components, including the transmission and drivetrain, since there may be certain inclusions and exclusions. A typical exclusion for a powertrain involves parts that have had after-market modifications.

c. Corrosion Warranty

A corrosion warranty is the portion of the manufacturer warranty that covers naturally-occurring corrosion. This warranty covers corrosion or rust that can occur on the surface or paint of a vehicle after the paint and protective layers have been shed due to an accident or natural exposure. These warranties typically only cover the sheet metal panels on the vehicle. A common Canadian manufacturer corrosion warranty will protect the vehicle for five years with no kilometre limit. Typical exclusions of the corrosion warranty include accidents, collisions, faulty installation or alterations to the vehicle that affect the performance of the covered components; weather stripping such as hail, rain and lightning; stone chips, scratches or other paint damage that lead to rust; vehicle neglect; cleaning and polishing agents, chemicals and solvents, improper undercoating or use of other rust prevention materials.

d. Roadside Assistance

Roadside Assistance is a component of a warranty that many manufacturers are offering. This portion will provide drivers with a 24-hour rescue-like service. This service is known to cover drivers for locking themselves out, running out of fuel and flat tires. Usually a manufacturer pairs up with a service provider that can deal with these road-side issues. A typical Canadian Roadside Assistance warranty will last for three or four years with no kilometre cap. Exclusions for this warranty include, but are not limited to, abuse of service and damages as a result of vehicle abuse or racing.

e. Hybrid and Electric Car Battery Warranty

Hybrid and electric cars rely more heavily, or solely, on their batteries to operate than a car that uses a fuel engine, so manufacturers offer protection for the batteries in these cases. There are even federal law implementations that require the manufacturer to guarantee the battery for a certain time. Within the battery warranty is protection for the key components of a battery, such as the cooling system, control modules, the transmission and high-voltage converters. A standard Canadian hybrid battery warranty lasts for about eight years/160,000 kilometres.

If you are looking to compare different warranties, check out this article, which explains in detail how to go about the process.

If you have any additional questions, feel free to contact us at any time or visit Unhaggle.com.

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Updated on March 26, 2013

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