What’s confusing is that people often refer to the basic limited warranty as the factory warranty. Damage from misuse – like taking a Cadillac offroad – isn’t covered, and acts of God, like flooding from a natural disaster, are also not covered. The bumper-to-bumper warranty does not cover routine maintenance like oil changes or damage from lack of such maintenance. This is an exclusionary warranty that often excludes wear items like brakes and tires, as well as environmental damage like external rust or windshields. Basic Limited WarrantyĪlso called bumper-to-bumper coverage, this warranty covers defects in materials or workmanship for many parts of the car. However, the circumstances under which those parts are covered can vary.īelow are the main types of coverage that are typically included in a factory warranty. Exclusionary coverage typically covers more items, since there are thousands of parts that make up a car. If a warranty is exclusionary, the contract lists the excluded parts instead. If a factory warranty is inclusionary, the contract will explicitly list every part that is included in the coverage. To understand what those are, we need to make a quick distinction between inclusionary and exclusionary warranties.
The term “manufacturer warranty” really includes more than one warranty. Since major car brands are competing in the same marketplace, shoppers expect that most factory warranties will offer similar core coverages, though the warranty details can differ between brands. What these warranties cover differs between makes and models, but the basics are similar. Today, practically all brands offer manufacturer’s warranties on new cars. It is automatically included with your new car, though some forms may require a deductible for certain repairs.
A big difference between a factory warranty and a manufacturer warranty is that you don’t have to pay for a standard factory warranty. Factory warranties most commonly apply to new cars and may include a powertrain warranty, maintenance, corrosion, and emissions coverage.įactory warranties are different from other kinds of warranties because they are backed by the actual manufacturer. The factory warranty is a new vehicle limited warranty that is covered through the car manufacturer and pays for car repairs within a specific time frame and/or mileage after the purchase of the car. How Do You Know If Your Car Is Still Under Warranty?.
We’ll also talk about extended warranties offered by manufacturers and other providers. In this article, we’ll get into the nitty-gritty of what factory warranties really are. While its exact definition can vary in different situations, it always refers to some type of coverage that is offered by the original brand or manufacturer. If you’ve ever shopped for a car, you’ve heard the term factory warranty.
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