4 Things You Should Know About the Limited Warranty

Buying a car is a significant investment. So customers want to ensure that they get their money's worth while mitigating their risks. The best way to make them comfortable with the investment they’re making is to clearly explain to them the benefits of a limited warranty. In this article, we’re going to discuss what it is, and what does limited warranty cover.

The last thing you’d want is angry clients busting through your door about their warranty not being granted.

signing a contract

1. What is a limited warranty?

Warranty: A warranty in general is a contract that promises to replace, repair or refund damaged or defective goods or services. Manufacturers offer warranties to back up the quality of the product and give people confidence during the buying process. Without this kind of security, most consumers might walk away from the deal entirely.

Having a warranty helps, but it doesn't cover everything. Warranties reasonably have their limits. Thus it's called a limited warranty. Generally, the contract specifies how long the warranty lasts, what it covers, and who can use it.

Limited Warranty: A limited warranty only covers the parts listed, certain kinds of issues, or other conditions. It also includes the cost of labor for covered parts and issues.

Also, note that it can mean almost anything the store decides. Therefore, knowing what "limited" means is crucial before buying your car. You can either read the fine print or ask your dealer, "what does limited warranty cover?"

2. What does a limited warranty mean on a car that's new?

Limited warranties are included in buying new cars. However, there are a variety of warranty options that are available like a VSC or extended warranty which has a longer period of around 6-8 years and up to 100,000 miles.

hands exchanging car keys

3. There are various types of limited warranties based on their coverages:

Reminder: Each manufacturer has different warranty coverages, terms and policies, so always read the fine print. These are the general scopes that most limited warranty covers.

So, let's find out what does limited warranty cover:

A. Bumper-to-Bumper Warranty - The basic warranty covers most defects. It can last for three years or 36,000 miles, whichever comes first. It covers nearly all of a vehicle's parts when you buy it.(Except wear items)

B. Powertrain Warranty - A powertrain warranty solely covers the mechanical parts that allow the car to move. This limited warranty usually lasts longer than a bumper-to-bumper warranty. For example, a Jeep Wrangler comes with a five-year powertrain warranty or up to 60,000 miles. The longest powertrain warranties for new vehicles can protect you for up to 10 years or 100,000 miles.

C. Corrosion and Perforation Warranties - As the name implies, corrosion and perforation warranties protect the automobile from severe rust and corrosion problems. Some manufacturers restrict coverage on the actual perforation of metal sheets. In contrast, others define the limitations of their warranty as significant corrosion. Many other companies also provide distinct terminology for various kinds of damages.

D. Emissions Warranty - Certain components of your car's emission system must be covered by a unique warranty, as the federal government requires. This is why they can be different from state to state. The primary coverage states that for the first two years or 24,000 miles of ownership, the manufacturer is liable for repairs that result in your vehicle failing a state-mandated emissions test. Some states mandate that the minimum warranty period for certain parts is eight years or 80,000 miles.

For example in Vermont, all emissions-related parts are covered for 2 years or 24,000 miles, with the catalytic converter and engine control unit covered for 8 years or 80,000 miles.

While in California, all emissions-related parts are covered for 3 years or 50,000 miles, and a vehicle-specific list of more expensive emissions-related parts is covered for 7 years or 70,000 miles.

E. Hybrid and Electric Car Battery Warranties - Battery, electric motor, and other hybrid or electric vehicle-specific parts are covered by component warranties for repair. Electric motors are much easier to care for and wear out much less quickly than gasoline engines. But an electric or hybrid car's battery can be worth a lot and replacing it is one of the most expensive repairs you can make to a car. So, replacing batteries is covered separately - although it's still part of the "what does limited warranty cover" list.

F. Tire warranties - Your new car's tires are covered by a contract from the company that made the tires, not the company that made the car. Tire coverage includes structure problems and tires that wear out too quickly. It doesn't cover normal wear and tear, road hazards, or issues caused by a car's mechanical failure, like wheels that aren't in the right place. When you claim a tire warranty, you usually won't get the total cost of the tire back.

G. Restraint System Warranties - Some manufacturers, like Subaru, provide warranties on seat belts that extend beyond the standard "bumper-to-bumper" coverage.

woman showing a seatbelt

4. What is covered under limited warranty for a used car?

The warranty usually goes to the new owner when an automobile is sold. Suppose it's sold to a 3rd owner. In that case, they still are transferable as long as the warranty is still under the coverage period. For some manufacturers, they may alter the warranty's original conditions upon transfer, just like Hyundai. They have one of the longest warranties in the business for new cars: 10 years or 100,000 miles on the powertrain. However, when a covered vehicle is sold to a 2nd owner, the warranty cuts in half.

Now that you know what does limited warranty cover, you also have to note that specific conditions can void the warranty. Using a Buick for racing or even missing a routine maintenance schedule can void the warranty. If you want to know more about what voids a car warranty, click here.

Bonus Info

Another situation that voids a car’s warranty (90% of the time) is when it is manufactured in another country. So if you want to sell Previous Canadian to the US, you’re probably worried about having no sales because of voiding of warranties. You can easily remedy this by becoming our partner dealer. Can-Am dealer services offer a warranty that mimics the manufacturer's warranty. When manufacturers void the warranty, we're here to replace it for you with the same benefits you can get from the manufacturer's warranty… without worrying about losing your profits. If you want to know more about how Can-Am warranty can help you take advantage of the Grey market, then click here.

Conclusion or Takeaway

Limited car warranties are essential to make customers feel secure about agreeing with your offer. They also want to know how they can maximize their warranty benefits. So if a potential customer asks:

"What does limited warranty cover"

"What does a limited warranty mean on a car," or even

"What is covered under limited warranty for a used car,"

Save this article so you'd know the answer.

Have queries and concerns? Reach the Can-Am Team, we'd be more than happy to help you.

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