Manufacturer Warranty Versus Extended Car Warranty

Manufacturer Warranty Versus Extended Car Warranty

All of us are probably aware or have some experience with what a product warranty is. Whenever we’ve gone out to buy a mobile device or an appliance, for instance, our purchase usually comes with a written guarantee from the manufacturer that stipulates that the company will repair or replace the unit or device in question if it breaks down within a certain period. All warranties have the same overall structure and purpose, although there are certain differences between policies that depend on the coverage and industry.

In the car retail industry, there are two dominant types of warranties: manufacturer warranty and extended car warranty. Although they’re the same in that they provide some form of protection for car owners, they have some distinct differences. This post is going to talk about these differences between the two warranties.

Manufacturer Warranty

This type is often referred to as a “limited warranty” and automatically comes bundled with your new car purchase. It’s a standard guarantee that comes from the manufacturer of the vehicle, although certain makers might offer different levels of coverage. For example, some brands, such as Hyundai, Volkswagen, and Mitsubishi, provide warranties of up to 60,000 miles. There are even a few that cover up to 100,000 miles.

The manufacturer’s warranty is already included in the price of the vehicle and covers major issues like problems with the engine and transmission. Except for certain brands like the above-mentioned, many new car warranties don’t offer long terms because they believe their brands already hold value. Some examples of such brands include Mazda, Honda, Toyota, & Subaru, which only provide coverage for 36,000 miles or three years for a bumper-to-bumper warranty.

Under such a warranty, the manufacturer’s terms and conditions are set, and the scope includes manufacturer responsibilities, customer rights, and certain outlined scenarios when a product is considered viable for repair or replacement.

Extended Car Warranty

Also called a “service contract,” this kind of warranty is structured similarly to manufacturer warranties, but with a few stark differences—they are not attached to the purchase of the unit and serve the purpose of lengthening the coverage period after the manufacturer’s warranty runs out. However, it’s not just upon expiry of the latter that you should sign up for an extended warranty as they can also be used to provide additional coverage. This comes in handy if you’re worried that the basic warranty your vehicle comes with is, well, too basic. It’s also a good idea for when you’re worried about any expensive repairs your car might incur as it ages. Most insurance experts recommend that you purchase an extended warranty with a leading car warranty provider before your manufacturer’s warranty expires.


Although a manufacturer’s warranty provides coverage for a brand new car, it is almost often not enough, especially as the car ages or gains more miles. If you want to ensure full coverage for your car, an extended warranty is a good investment, especially if you don’t necessarily have extra funds on hand at any moment to spend for unexpected repairs.

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