When researching your next new or used vehicle purchase it’s a good idea to consider which one comes with the best vehicle warranty.
All new cars, trucks and SUVs come with comprehensive and powertrain warranties from the manufacturer. Most comprehensive manufacturer warranties are 3 years/60,000 km or 4 years/80,000 km, with powertrain coverage generally being longer. Whats the difference between comprehensive and powertrain?
|Comprehensive Warranty||Powertrain Warranty|
|· Covers defects in workmanship on most working parts of the vehicle, including electrical, fuel systems and air conditioning||· The powertrain warranty covers the parts of a car that provide power and make it move. This is the engine, transmission and drivetrain.|
Other types of vehicle warranties included from the manufacturer:
- Hybrid/electrical powertrain coverage is also provided for a separate term and varies among automakers, but most are around 8 years/160,000 km.
- Roadside assistance is also included with new vehicles and ranges anywhere from 3 to 6 years, or 60,000 km to unlimited kms.
- Some manufacturers provide varying terms of coverage for certain components such as emissions, radio systems, batteries and other wearable parts.
- Manufacturers include varying terms of rust-perforation warranty on new vehicles.
It’s important to read the fine print of any warranty and understand the various levels of coverage.
Which cars comes with the best warranty in Canada?
That goes to Mitsubishi, offering the overall best vehicle warranty at terms of 5 years/100,000 km for the comprehensive coverage and the best powertrain warranty at 10 years/160,000 km. For comparison sake, a list of the current coverage each manufacturer offers for its comprehensive and powertrain warranties is provided at the end of this blog.
Regardless of the type of vehicle considered, you may notice that all the manufacturer warranties have something in common: coverage generally expires long before it is truly needed. Each manufacturer has determined when they can offer protection without having to charge for it, and this equates to what is known as manufacturer’s warranty. Once the time or distance allowed has been exceeded, an extended warranty is needed for further coverage.
What’s the best extended car warranty?
We have discussed this topic in previous blog posts to some extent, but here are some additional things to consider. Automotive retailers are in a position to offer:
- A third-party warranty, most likely in the form of an insurance policy
- Extended coverage from the manufacturer, most likely in a “service contract”
What is often misunderstood at this point is that the automotive dealer is selling a policy or contract for which they have no overview or administrative role in the event of a claim. The sales agent has a laundry list of tactics and years of sales training to earn a commission. Car buyers should look online for alternatives and ask a lot of questions. Don’t feel pressured to immediately buy the extended warranty at the time your purchasing your new vehicle, as you usually have 30 days or more to make a decision.
Here are some things you should be concerned about:
- Transfer/Cancellation options — your needs are always changing does your warranty support that?
- Time and Distance — Don’t let years of coverage trump kms. Make sure you get a km option that you are happy with.
- Offer of a “no claim credit”— If it sounds too good to be true, it usually is. Typically, you pay a premium for this, and getting the money back is rarely a straightforward process and might require the purchase of a new vehicle from the same dealer.
- Fine print — You mostly need to be concerned about what isn’t covered. Fancy brochures won’t be brought out when a claim happens.
- Price — Shop around. Rarely do you get a reasonable price for extending a warranty at a dealership.