When you purchase a new car there is a lot of paperwork to do as a car owner. In some papers, there are number and years mentioned, which seems unessential and foreign until the repair day come.

Thinking what does that number represents? It represents the warranty that covers your car for some typical problems that come up. Yes, it is also known as the factory warranty. Learn here more about the meaning, benefits, and weaknesses of your warranties.

What is a car factory warranty?

It is basic coverage that is offered by the vehicle’s manufacturer at the time of certain repairing for free. The concept is simple but many car owners don’t know about it uses until the need arises. Waiting can be dangerous and cost your pocket more if you don’t know the most essential facts about the factory warranties.

Warranties don’t cover the things that most of the vehicle owner thinks. They do come in handy and with some specific issues. So it will help to know what is the factory warranty and how it can cost your pocket when certain repairs are required.

The basic knowledge

Generally, people don’t consider warranties as a priority when they purchase a new car. It is the last thing what they look at. The essential things they check is the features and mileage or the interior. Yeah, you’re also from the same category.

But you know what, you should avoid doing this. Instead of that, it’s a good idea to get the proper knowledge about the warranties. You never know when you need to go for repair work and your warranty might cover the expenses. It is not at all complex, ensure that you start from the basics.

Warranties in general

In general, warranties come in three different forms, factory, CPO, and extended. All of them have the same promises and purpose. Sometimes they get complicated when you check the difference between powertrain coverage and comprehensive.

On paper, the particulars of the warranty determine when you can use it but the basic is always present. Or else it will not consider under warranty.

The major difference between warranties is the cover and when they can use it. Different warranties cover different issues, parts, and conditions.

Limitations of the factory warranty

By knowing these limitations, it will help you in understanding your factory warranties. So that you can avoid any unwanted surprises. Specific limitations of the car warranties include things like,

  • Scope

The major thing that warranties are limited is the replacement or repair of the particular parts. Some warranties make it easy by covering all things from the car’s bumper. While others are more specific about the areas and systems within the vehicle. You can get the information in your warranty book like what is included and excluded.

  • Length

Warranties have two types of primary limitations, 1. Specific years and 2. A limited number of miles. For example, the warranty can be for three years or 36,000 miles’ mark on the odometer. Moreover, you can run out of your warranty quickly if you drive your car frequently.

  • Issues

Vehicles can go wrong for any reason. But warranties usually limit the type and the causes. So, the warranty doesn’t apply in all cases when small or minor mechanical repairs are needed. Factory warranty limits themselves by taking the blame on them just in case of factory defects. Moreover, if your interior or craftsmanship defects from the factory end, they will replace it without taking any charges.

Should you buy a warranty?

Before you buy a new warranty first you need to think about whether you need it or not. Generally, it depends on the person. Because it is another form of car insurance that can be cover at the time of an accident or someone is injured. You don’t expect that to happen, but keeping a safe side is good. Sometimes, it helps in avoiding the common mechanic scams.

It will be always a good idea to buy the extended warranties when you think of keeping your car for a long time. Yeah, it might cost you more and can’t even cover certain parts and repairs but will definitely be going to help you in saving your pocket for the long run and even helps in selling your car.

What to look for in a warranty?

When you decide to purchase a warranty, you need to be sure about all the things. As a general rule, the more expensive plan you select the more coverage you will get. Here are some details that will help you in taking the decision.

  • Check whether they take coverage of the rental car.
  • How much will be the deductible amount?
  • List of parts that are covered in the plan.
  • Whether there is a specific repair shop that you need to take.
  • How will you pay the mechanic?
  • Does it cover the charge of the towing vehicle?

You just need to remember that it’s all about the details. So think about how different coverage options can distress you.

Benefits of the extended warranties

Sharing this list of benefits that are been offered by the manufacturers or the third-party.

  • Convenience and peace of mind

As you all know that technology is getting fast surpass. There are more advance and innovative technologies compare to other things. Due to rising the repair costs, it’s in your customer’s best interest to protect themselves within the budget.

  • Budget protection

Breakdowns can happen anytime and can cost your pocket more. The new buyers get the benefit of factory warranty for a limited time. But now a day, car owners believe to keep their car for a longer period, so they need to extend the warranty period.

  • Greater car value

Getting a greater car value is the hidden benefit of warranties. It is said that vehicle with under warranty or who had extended warranty is more likely to be well maintained and in good condition. It will consider more trustworthy and more valuable to the owner.

Questions you can ask before extending or purchasing your warranties
If buying the car is already a financial handful thing, then you should shop for an extended warranty after the sale. You can certainly ask the questions mention below to your agent.

  • What benefits are they providing?
  • What issues, parts, and repairs are covered?
  • Is it transferable?
  • For how long is the coverage available?
  • Do they provide paintwork protection? Or how to protect your car’s paintwork?
  • How much it will cost?
  • Who will pay the repairing cost?
  • Is the price negotiable?

You can ask these questions to the salesperson before you sign on the dotted line. And there is no reason why you need to take the one that the dealer is offering.


With the help of extended warranties, everybody can win. The manufactures can rest assured that their customers are covered with the benefits and knowledge listed above. If you still want to learn about the warranties, you can consider taking help from the professionals.