A manufacturer’s warranty is designed to give you peace of mind when you buy a new car. That said, not all warranties are created equal and you should be sure to compare car manufacturer warranties before you invest in a new vehicle. This is because each warranty will offer different features and benefits as well as different exclusions.
Finding the right match for your unique set of needs can be a determining factor in what type of car you end up purchasing.
What is a car manufacturer warranty?
A car manufacturer warranty is a promise made by your vehicle manufacturer to take responsibility for any faults or defects that may occur in your first few years of car ownership. If there are issues, the manufacturer typically pays to fix the problem by covering the cost of repairs.
Car warranties are usually expressed as a number of years and kilometres, with the warranty expiring once either milestone has been reached. For example, a warranty of 3 years or 100,000 kilometres would expire 3 years after the date of purchase or once you’ve driven 100,000 kilometres – whichever comes first.
Most manufacturers offer a limited warranty that is included for free when you purchase your vehicle. You may also be able to purchase an extended warranty to cover parts and labour beyond the time period and mileage included with your limited warranty. Adding extended coverage to your policy will typically cost a few thousand dollars more.
How do car manufacturer warranties compare?
You can find the highlights of limited warranty plans from several major car manufacturers below. For most of these manufacturers, you’ll also be able to purchase extended warranty coverage for an additional fee.
Manufacturer | Warranties | Extras |
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Audi |
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BMW |
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Chevy |
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Ford |
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Honda |
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Hyundai |
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Jeep |
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Kia |
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Mazda |
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Mercedes-Benz |
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Mitsubishi |
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Nissan |
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Subaru |
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Tesla |
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Toyota |
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Volkswagen |
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How does it work?
If your car has a defect covered by its warranty, the first thing you should do is contact the dealership where you purchased your vehicle. In most cases, you’ll bring your car to the dealership’s auto shop or a licensed mechanic that partners with the car dealer. The mechanic will fix the car, and all costs will be covered under your warranty.
What is usually covered under my warranty?
What’s covered under your warranty will vary depending on which manufacturer you go with. Most warranties include some form of bumper-to-bumper and drivetrain coverage (usually lasting for three to five years, depending on the make of the car). Others will cover extras such as damage due to perforation/corrosion, malfunctioning emissions systems and low battery life.
To find out exactly what your warranty will pay for, you can read through the warranty documents that came with your new car or contact the dealership where you bought it. Just be aware that your warranty is only designed to fix manufacturing defects that already exist in the car or become apparent before the warranty is up. It’s not designed to cover routine maintenance or damage due to collisions.
What restrictions usually apply under a car warranty?
A warranty generally doesn’t cover cosmetic damage or wear and tear that occurs to the vehicle, even during the warranty period. That said, a select few will cover small incidentals such as adjustments and consumable parts (including light bulbs, filters and brake pads). This coverage will usually only last for up to a year after you purchase your car.
Most warranties won’t cover the following incidentals:
- Damage to the car resulting from an accident
- Damage resulting from misuse of your car
- Items that tend to wear out over time, such as brake pads and tires
- Routine servicing and maintenance
Types of car warranties
Understand your rights under different types of car warranties:
- Manufacturer’s new car warranty. Every new vehicle is covered by a manufacturer’s warranty. These are the most comprehensive warranties and cover almost all manufacturer defects for a limited time.
- Used car warranty. A used car purchased from a dealership will typically come with a warranty. This warranty may be less comprehensive and last for a shorter time than a warranty offered by a new car manufacturer.
- Extended warranty. Extended warranties or vehicle service plans are offered by dealerships and third-party companies. They’re intended to provide coverage after your warranty expires. Unfortunately, they’re not usually worth the extra cost when you factor in the average cost of repairs that occur in the time your coverage is extended for.
- Lemon laws. While not technically a warranty, you may have legal protection if you’re sold a faulty car. If you purchase a lemon from a Canadian auto dealer, you can contact your provincial or territorial consumer affairs office for more information about how you might be able to protect yourself or seek restitution.
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Bottom line
All major car manufacturers that sell cars in Canada offer some sort of warranty – but not all warranty options are created equal. This is why it pays to carefully weigh out your options before you settle on the vehicle you want. Taking the time to find a comprehensive warranty can help you save on maintenance costs down the line. And choosing the right car loan can help you save on costs throughout the life of your car.
Frequently asked questions
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