The warranty is basically your safety net when you buy a new or used car, and it varies depending on what kind of car you might buy, when you buy it, or whether it’s new or used.  New cars tend to be sold with two warranties, sometimes three (if it’s a hybrid), which might complicate things even more.  Here’s a quick set of pointers on what to know.

The first warranty you will see (usually the shortest) is the bumper-to-bumper warranty.  This warranty covers, for the most part, pretty much everything on the car you’ve just purchased, including normal-wear items, such as the brakes, and cosmetics as well.  It’s often no more than five years or 60,000 miles, and will expire when one of the two criteria is reached–this is true for other warranties. Bumper to bumper warranties are usually transferable to the second owner as well.

The powertrain warranty is often the second warranty you should keep in the back of your mind.  It’s usually longer than the full warranty, and covers fewer things.  That said, what it covers is crucial.  Your engine, transmission, and often, the driveline (axles, driveshafts, diffs might be as well) are all covered.  The powertrain warranty is most often transferable, unless you were a poor soul who purchased any 2008 Chrysler product with an “Unlimited” powertrain warranty (It’s not transferable).  Some hybrids, such as most Toyotas, often have even a third warranty that covers just the hybrid parts (electric motor and battery) which extends further than the powertrain one–great for peace of mind and cost, should the battery go bad.

Also, don’t be afraid to purchase an extended warranty on a used car–it could end up paying for itself in the near future.  Most used cars get sold with a warranty of 30-90 days, while most certified pre-owned cars will get a fresh warranty for a few more years and possibly a lot more miles.  Overall, keeping an eye on your warranty can be a huge boon when something stops working. In the past it has saved me a lot of money when the going got tough.  For example, years ago, there was a minivan in our family that was probably the worst car we ever owned–the transmission went at 30K miles, and it ended up being covered under the powertrain warranty, saving us about $3,500.  Perhaps it might do the same for you.

-Al