What Is a Factory Warranty? 2024 Guide (2024)

A factory warranty, or manufacturer’s warranty, is a guarantee that an automaker will pay to cover or repair most breakdowns, defects or failures due to defective parts or workmanship errors. Warranty coverage lasts for set amounts of time or miles driven, with lengths and mileage limits varying between manufacturers. Most warranties provide 3 years/36,000 miles of comprehensive coverage.

Factory warranties are included by default with the purchase of new cars and aren’t sold as optional or separate products. Your car’s purchase price includes the cost of a manufacturer’s warranty and isn’t something you can turn down or otherwise avoid.

Though factory warranties protect against manufacturer defects and flaws, they don’t cover every breakdown and don’t last forever. Let’s look at how factory warranties work, what they cover, when they expire and the difference between factory warranties and the best extended warranties.

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How does a factory warranty work?

A factory warranty is included with a new car by default, which means coverage begins on the in-service date and lasts for the duration or mileage limit set by the warranty — typically 3 years/36,000 miles for most brands.

Factory warranties guarantee against car manufacturer defects or workmanship errors. The manufacturer performs and pays for covered repairs at an authorized dealership as long as the breakdown occurs from an event listed in your warranty information document.

Any product covered by a warranty, such as a new car, must comply with the terms of the Magnuson-Moss Warranty Act. This federal law — known as the “lemon law” — requires manufacturers to sell products that are safe and free of defects. In addition, it prevents manufacturers from voiding your warranty for getting repairs done at a facility of your choice or for using aftermarket parts.

Though factory warranties are only available for new cars, they may cover used cars depending on the manufacturer and the vehicle’s age and mileage. If you buy a used vehicle, contact the seller or dealership to check if the car’s factory warranty period is still active.

What are the types of factory warranty coverage?

There are several types of manufacturer warranties, including bumper-to-bumper coverage, powertrain coverage and emissions coverage. Other types of coverage that may be included are anticorrosion or perforation warranties, accessories warranties, and seat belt and airbag warranties.

Factory warranty coverage is generally similar between manufacturers, even though brands often use different labels for their types of warranty coverage.

As an example, below is an overview of Ford’s factory warranty:

Bumper-to-bumper warranty

A bumper-to-bumper warranty is comprehensive and exclusionary coverage for most of your vehicle’s parts and systems, protecting most of the parts between your car’s bumpers. Manufacturers often refer to this coverage as a new vehicle warranty, new vehicle limited warranty or basic limited warranty.

Bumper-to-bumper coverage typically expires first compared to your vehicle’s other warranties. For most manufacturers, the new vehicle warranty expires after three years or 36,000 miles, whichever comes first.

Powertrain warranty

A powertrain warranty, or powertrain limited warranty, is stated-component coverage that covers your vehicle’s engine, transmission, and front- and rear-wheel drive systems. These are generally your car’s most important and expensive components and can cost thousands of dollars to repair or replace.

Powertrain warranties may include coverage for other components as well, including the timing belt, fuel pump, oil pump, gaskets and seals.

Most manufacturers provide 5 years/60,000 miles of powertrain coverage, though the best new car warranties, such as Kia and Mitsubishi, cover the powertrain for 10 years/100,000 miles.

Emissions warranty

The Clean Air Act is a federal law that requires automakers to provide two emissions warranties for new and used vehicles:

• Performance warranty: A performance warranty requires manufacturers to pay for repairs if a vehicle fails an emissions test within the first 2 years/24,000 miles of its initial sale. The catalytic converter, electronic emissions control unit or computer (ECU) and the onboard emissions diagnostic (OBD) device or computer are covered for 8 years/80,000 miles.
• Design and defect warranty: A design and defect warranty covers emission control or emission-related parts that fail or malfunction because of a defect in materials or workmanship. Coverage lasts for 2 years/24,000 miles for most parts, with the warranty period increased to 8 years/80,000 miles for the catalytic converter, ECU and OBD device.

In addition, the California vehicle and emissions warranty applies to vehicles sold in California and any states that have adopted the same standards. This law extends the defects and performance warranty to 3 years/50,000 miles and adds a high-cost emissions-related parts warranty for 7 years/70,000 miles.

The California emissions warranty also includes a defects and performance warranty for partial zero-emission vehicles for 15 years/150,000 miles for all parts except the battery and 10 years/150,000 miles for the battery or other energy storage devices.

Anticorrosion/perforation warranty

Anticorrosion and antiperforation warranties protect against corrosion and rust of body sheet metal due to defects in material or workmanship. Though specific coverage tends to vary between manufacturers, your car is generally eligible for repairs under this warranty if parts corrode or rust through no fault of your own or for reasons outside of regular wear and tear.

Anticorrosion/perforation warranty periods differ in length between manufacturers, though many cover at least 5 years/100,000 miles, with some providing coverage for unlimited miles.

Below is an example of corrosion/perforation warranty coverage from Toyota:

Accessories warranty

A factory warranty often includes coverage for any accessories purchased at the same time you buy the car. It may also include coverage for accessories purchased after you buy the car as long as the factory warranty is still in force.

Specific coverage depends on the car manufacturer, though most companies only cover genuine OEM parts and parts installed by an authorized dealer. In general, the warranty period lasts for the remainder of the factory warranty for parts purchased at the same time you buy your car or for 1 year/12,000 miles for parts purchased after you buy your car, but the coverage period varies between automakers.

Supplemental restraint system warranty

Supplemental restraint system (SRS) warranties, or restraint system warranties, cover any defects or workmanship issues in your car’s seat belt or airbag systems. The SRS warranty does not cover cosmetic defects or issues.

Like other warranties, the length of the SRS warranty coverage period depends on your vehicle’s manufacturer. For example, Ford’s SRS warranty lasts for 5 years/60,000 miles, whereas Chevrolet’s SRS warranty is in force for 6 years/72,000 miles.

Highlighted below is Chevrolet’s restraint system coverage within its new vehicle limited warranty:

What doesn’t a factory warranty cover?

Every factory warranty includes a list of exclusions — conditions, incidents and parts that aren’t covered by the warranty. Though specific exclusions vary slightly between manufacturers, common exclusions include the following:

• Damage from misuse, neglect or using the vehicle in activities not described in your owner’s manual
• Improper or lack of maintenance
• Accidents or damage from collisions with objects
• Fire or explosions
• Rioting, theft or vandalism
• Cosmetic damage and normal wear and tear
• Routine maintenance, such as oil changes or new brake pads or wipers
• Damage caused by using contaminated or incorrect fuel, oil or lubricants or by accidental spilling
• Damage caused by aftermarket parts
• Environmental corrosion
• Tires
• Expenses incurred through the loss of use of your car, such as lost wages

While the exclusions listed above may result in denied warranty repair claims, your factory warranty is void if any of the following are true:

• Your odometer has been tampered with, is inoperable or hasn’t been immediately repaired after it began malfunctioning
• Your vehicle is declared a total loss or has a salvage title

To avoid denied warranty repairs, read through your warranty information to understand what’s covered, what isn’t and how to maintain your policy.

When does a factory warranty end?

A manufacturer’s warranty ends when your vehicle reaches the age or mileage limit set by the automaker, whichever comes first. For example, a factory warranty with a coverage period of 3 years/36,000 miles would end three years or 36,000 miles after the car’s purchase date.

Similarly, other coverage, such as the powertrain or emissions warranties, remain in force until the car reaches the set age or mileage limit set by the specific warranty.

The table below lists the warranty length of the best new car warranties:

Most manufacturers offer certified pre-owned (CPO) warranties for used cars that meet certain expectations and standards. The best CPO warranties continue — or even increase — the remaining bumper-to-bumper warranty and powertrain warranty periods to give used car buyers better peace of mind.

Can you transfer a factory warranty?

Your vehicle’s factory warranty transfers automatically to a new owner when you sell your car, whether to a private party or a dealership. This is because the factory warranty is attached to your car’s vehicle identification number, or VIN, and not to the owner.

This means the new owner would inherit the remainder of the car’s new vehicle warranty. If your car had an original factory warranty of 3 years/36,000 miles and you sell your car after 2 years/24,000 miles, the new owner would have 1 year/12,000 miles of remaining coverage.

However, some manufacturers may reduce powertrain coverage or eliminate certain warranties upon a sale. For example, the Kia factory warranty cuts its powertrain coverage in half — from 10 years/100,000 miles to 5 years/50,000 miles — for second or subsequent owners of used cars.

Selling a car with an active warranty may increase its value compared to cars without existing coverage, but read through your warranty to see what specific coverage transfers — and to what extent.

What are the differences between factory warranties and extended warranties?

A factory warranty is included by default with the purchase of any new car, with terms and restrictions set by the vehicle manufacturer. An extended warranty is an aftermarket vehicle service contract that increases your vehicle’s protection after its factory warranty expires.

Where factory warranties are set and managed by manufacturers, extended warranties are sold by manufacturers and third-party administrators and brokers. As a result, coverage options, age and mileage limits and cost vary between companies.

Extended warranties cost a total average of $2,845 in addition to other fees, such as a deductible for covered repairs. In addition to bumper-to-bumper, midlevel and powertrain coverage, an extended warranty typically includes other perks, such as roadside assistance, towing assistance and maintenance benefits.

In other words, extended warranties are sold by warranty companies to pick up where your factory warranty leaves off after it expires. These products continue your choice of warranty coverage, including other benefits, in exchange for a monthly or lump-sum payment and possible deductible for covered repairs.

Buyers guide: Everything you need to know about factory warranties

Factory warranties are beneficial policies that cover your car against expensive breakdowns and defects, but they can also be difficult to understand at first.

What’s next?

Your car’s factory warranty covers most breakdowns and defects caused by manufacturer errors or workmanship issues. However, no warranty lasts forever, and factory warranties are limited in length — around 3 years/36,000 miles for most automakers, or 5 years/60,000 miles for the best manufacturer’s warranties.

If you plan on keeping your car for longer than the length of its factory warranty, shop around for coverage from extended warranty companies. Purchasing an extended warranty can help you avoid expensive out-of-pocket repair costs as your car gets older and puts on mileage.

We recommend requesting a quote from Endurance, our top pick for extended warranty providers.