What Do Dealer Auto Warranties Cover

10/06/2010 09:48
When a person purchases a new or used vehicle from a dealer, it may come with a warranty from the manufacturer. Automobile warranties provided by these dealers cover the breakdown of certain parts and components within a specified period. Car owners should know what is included so they know where their exposure lies.


The manufacturer may provide either a powertrain or bumper-to-bumper car warranty, or both. The powertrain coverage pertains to the transmission, drive axles, engine, and other related systems and components. It often runs for a long period such as five, seven, or ten years and some manufacturers even provide lifetime powertrain coverage.

Bumper-to-bumper Vehicle Warranties include almost all systems, components, and parts in the vehicle. These contractsoften list what is not covered rather than what is because they are so comprehensive. Consumers should read the document carefully to identify any parts or components that are not covered. This coverage extends for a pre-specified mileage or amount of time. The sooner of three years or 36,000 miles or ten years or 100,000 miles are common terms for bumper-to-bumper coverage.

When the original manufacturer Vehicle Service Contract has expired, the owner should consider purchasing an extended auto warranty. This provides a desired level of coverage for an additional specified term and carries a very low price tag when purchased through a private agency. These vehicle warranties provide auto owners with additional financial security during a multi-year period. The owner will only need to pay a low deductible for covered repairs during this time.

Though manufacturer auto warranties are provided by dealers, consumers should consider more coverage after this period expires. Whether the auto is new or used, there are extended service contracts available. These offer varying levels of coverage for components and parts at a very economical price.