We look at all of the new car warranties to determine who provides the best protection.
In the world of new car warranties, it’s standard to find factory coverage for 3 years or 36,000 miles, but some manufacturers have warranties that go above and beyond. To determine the best new car warranty, we researched all major manufacturers to see which ones provide the highest levels of bumper-to-bumper coverage and powertrain protection. Read on to find out which brands came out on top.
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In this article:
- What Is A Car Warranty?
- What Makes A Good Car Warranty?
- Top 10 New Car Warranties
- What Dealer Has The Best New Car Warranty?
- Why You Might Need An Extended Warranty
What Is A Car Warranty?
An automobile factory warranty is a contract between you and the manufacturer of the car, stating that any defects in the vehicle will be repaired or replaced. This agreement ensures that your new car is protected and guaranteed to remain at a certain quality level, as long as you take care of it and hold up your end of the bargain. Part of the terms includes having all of the warranty work performed at a dealership.
Car warranties can extend beyond what is offered by the manufacturer. Once your factory warranty term expires, you can get coverage with an extended warranty through the automaker or a third-party company like CARCHEX.
What Makes A Good Car Warranty?
To make a decision on the best new car warranty, we first have to consider the following criteria:
Length: Factory warranties come with limits. You will notice that most new car warranty terms include both years and mileage. So, if a warranty states that coverage continues for 3 years or 36,000 miles, the owner is no longer covered once one of those milestones is reached. The longer the term, the better the warranty generally is. In most cases, powertrain warranties have longer terms than bumper-to-bumper coverage, mainly because a powertrain warranty covers fewer components.
Inclusions: New car warranties often feature a list of what’s included. You should examine this and make sure you understand which parts are covered in case a defect occurs.
Exclusions: In the same way, you must look at the list of exclusions, if applicable. These parts will not be covered by the manufacturer if something goes wrong. Bumper-to-bumper warranties tend to come with the most coverage, so the list of exclusions should be relatively short.
Additional Benefits: Some new car warranties only feature a few perks, but others have numerous benefits. Look for roadside assistance, rental car reimbursement, and trip interruption coverage during your search for the best new car warranty. On top of that, you might find a few manufacturers that provide free oil changes or towing, as well.
Top 10 New Car Warranties
Here’s a closer look at 10 vehicle manufacturers that provide factory coverage for longer than the industry standard.
|Volkswagen||6 years/72,000 miles for 2018 and 2019 models, 4 years/50,000 miles for 2020 models||6 years/72,000 miles||7 years/100,000 miles||3 years/36,000 miles|
|Hyundai||5 years/60,000 miles||10 years/100,000 miles||7 years /unlimited miles||5 years/unlimited miles|
|Kia||5 years/60,000 miles||10 years/100,000 miles||5 years/100,000 miles||5 years/60,000 miles|
|Genesis||5 years/60,000 miles||10 years/100,000 miles||7 years/unlimited miles||5 years/unlimited miles|
|Mitsubishi||5 years/60,000 miles||10 years/100,000 miles||7 years/100,000 miles||5 years/unlimited miles|
|Jaguar||5 years/60,000 miles||5 years/60,000 miles||6 years/unlimited miles||5 years/60,000 miles|
|Infiniti||4 years/60,000 miles||6 years/70,000 miles||7 years/unlimited miles||4 years/unlimited miles|
|Lincoln||4 years/50,000 miles||6 years/70,000 miles||5 years/unlimited miles||Unlimited|
|Tesla||4 years/50,000 miles||8 years/mileage varies by model||12 years/unlimited miles||4 years/50,000 miles|
|Cadillac||4 years/50,000 miles||6 years/70,000 miles||6 years/unlimited miles||6 years/70,000 miles|
At a glance, it appears that Volkswagen has the best new car warranty because of the 6-year/72,000-mile bumper-to-bumper coverage, which remains accurate for 2018 and 2019 models. But the company’s numbers changed to 4 years or 50,000 miles with the 2020 models – moving it to the bottom of our top 10 for those vehicles. When it comes to 2020 models, Hyundai, Kia, and Genesis dominate with the best new car warranties on the market.
While all of these brands sell cars and SUVs, you might notice that none of them have a truck in production right now. If you want a pickup with the best warranty, you have a variety of options to choose from. Chevrolet, GMC, Ram, Ford, and Jeep all offer the same 3-year/36,000-mile bumper-to-bumper coverage and 5-year/60,000-mile powertrain coverage.
What Dealer Has The Best New Car Warranty?
We have looked at all of the brands to determine which one provides the best coverage. Here are the top four companies, plus the warranties offered.
Hyundai 5 Years/60,000 Miles
With Volkswagen dropping down the ranks with its 2020 new car warranty, Hyundai is at the top of the list for the best new car warranty in 2020. Its factory warranty provides great bumper-to-bumper and powertrain protection. Combine that with high-reliability ratings, and Hyundai gives the competition a run for its money.
The bumper-to-bumper coverage lasts for 5 years or 60,000 miles and is now one of the longest on the market. Then, the automaker adds in a powertrain warranty lasting 10 years or 100,000 miles. That’s twice as long as some other companies will protect the engine and drivetrain. What put this organization above the rest is the inclusion of roadside assistance (5 years) and a corrosion warranty (7 years), both with no mileage limit.
Kia 5 Years/60,000 Miles
Kia was once known as a budget manufacturer, but it has quickly become one of the top brands in the industry. Not only are Kia vehicles affordable, but the warranty rivals that of its sister brand, Hyundai. It also features the same bumper-to-bumper coverage lasting 5 years or 60,000 miles. Plus, it provides powertrain protection for 10 years or 100,000 miles.
The only difference is that Kia has shorter term lengths for roadside assistance and corrosion. Roadside assistance is capped at 60,000 miles, while the corrosion protection ends with 100,000 miles. Still, neither of these is worth complaining about, since it is longer than most warranty coverage from other automakers.
Genesis 5 Years/60,000 Miles
Genesis is the luxury offshoot of Hyundai, so its reputation runs high. The automaker ties with Hyundai for term lengths with 5 years or 60,000 miles of bumper-to-bumper protection and 10 years or 100,000 miles of powertrain protection. In our book, that makes Genesis one of the best new car warranty providers in the market.
Volkswagen 6 Years/72,000 Miles For 2018 And 2019 Models
Volkswagen continues to stand on its strong German reputation of quality and precise engineering. Because the automaker offers reliable vehicles, it is a no-brainer for the company to provide a long warranty term.
While Volkswagen’s 2020 new car warranty doesn’t top our list – although it still makes it into our top 10 with 4 years or 50,000 miles of bumper-to-bumper protection – we can’t ignore the fact that Volkswagen offered the best new car warranty around on its 2018 and 2019 models. If your vehicle falls into that category, you are protected with 6 years or 72,000 miles of bumper-to-bumper and powertrain coverage. There’s no beating that.
Why You Might Need An Extended Warranty
Vehicle owners who have a factory warranty from one of these top brands may feel that they have enough protection, but it’s important to think about your car in the long term. Even if your manufacturer warranty lasts longer than most, it’s not going to last forever – and sometimes it can be cheaper to purchase an extended car warranty before your factory coverage expires.
Here are some of the benefits to investing in extended protection:
- Peace of mind: According to AAA, one in three consumers can’t afford to pay for an unexpected car repair. This leaves owners with the thought of going into debt when something breaks. With an extended warranty, you receive a guarantee that covered repairs will be paid for, minus your agreed-upon deductible.
- Selling feature: If you plan to sell your vehicle and have a transferable warranty in place, your vehicle could be more attractive to potential buyers.
- Extra perks: Many extended warranties include roadside assistance, rental car coverage, and other benefits.
Where Should You Buy An Extended Warranty?
When it comes time to purchase an extended warranty plan, you have some options available. You can sign up for the factory-backed vehicle service contract at the dealership. If you want to do this, take these factors into consideration:
- You will end up paying more if you roll the extended warranty into your car loan.
- With manufacturer-backed warranties, you generally have to use a dealership service center for repairs. This doesn’t allow for much flexibility.
If you don’t want to go to the dealer to get a warranty, there are many reputable third-party companies that provide exceptional coverage.
Consider these additional benefits with a third-party warranty:
- Affordable plans
- Your choice of a repair facility
- Wide variety of coverage options
- Ability to shop for the best price
- Additional perks included, such as towing or roadside assistance
- Protection anytime for almost any vehicle