Factory Warranty vs Extended Warranty

What Factory Warranty Provides

Factory warranties come with new vehicles and provide manufacturer-backed protection.

• Included free with new vehicle purchase
• Covers manufacturer defects and failures
• Typically 3 years/36,000 miles bumper-to-bumper
• Powertrain often covered 5 years/60,000 miles
• Must be serviced at authorized dealers (usually)
• Backed by manufacturer's financial resources
• May transfer to new owner if vehicle is sold

What Extended Warranty Provides

Extended warranties continue protection after factory coverage expires or supplement factory coverage.

• Can be purchased anytime (before or after factory expires)
• Covers mechanical and electrical failures
• Terms from 1-7 years or 50,000-150,000 additional miles
• Use any licensed repair facility nationwide
• Often includes roadside assistance, rental car coverage
• Available for used vehicles without factory warranty
• Flexible deductible and coverage options

Making the Right Choice

Factory warranty provides excellent coverage for new vehicles, but extended warranty becomes valuable as factory coverage expires. Consider extended warranty if you're keeping your vehicle past factory coverage, own a used car without factory warranty, or want additional benefits like roadside assistance and rental car coverage.

Frequently Asked Questions