Factory Extended Warranty

The Factory Built It,
They Should Warranty it Best!

The manufacturer of your car will typically have great factory extended warranty coverages available, but they will make you pay for it.

At least that's what the dealership will try to make you believe in order to increase their profits!

In actuality, a factory new car extended warranty coverage is quite competitive and oftentimes beats the aftermarket warranty companies. This typically applies to near new vehicles only.

By near new, I mean the car is still covered by the original factory warranty. For most cars this means it is less than three years old and has less than 36,000 miles.

Usually, the extended warranty coverages offered by the factory only begin to get overly expensive once the car is very close to and/or has exceeded the factory warranty limits.

If you are looking to buy a Factory Extended Warranty, then the saying, "the sooner the better," certainly applies.

Know The
Available Coverages

In addition to when you buy the coverage, you'll also want to know what levels of coverage are available and be sure that the dealer you are buying from is selling you the top level new car extended warranty coverage your car qualifies for.

In this example, I'd like to use GM extended warranties as an example, because GMPP is what I quote from this site and the new car extended warranty that I am currently most familiar with.

GMPP's three levels of coverage:

  1. Major Guard (Top of the line)
  2. Value Guard (Middle of the road)
  3. Basic Guard (Powertrain Plus coverage)

Most manufacturers will have similar factory extended warranty levels of coverage available; although, some manufacturers may offer an additional fourth option. My recommendation is to always opt for the top level of coverage.

A Common Warranty Scam
One of the more common deceptions, or scams, I see customers run into is when a warranty is totally misrepresented as the top of the line, when in reality it is the most basic of coverages at the top of the line price.

This leads to serious confusion if and when the car breaks down and oftentimes, out right anger...as it should!

You were duped and it cost you thousands for the lack luster new car extended warranty coverage you bought and now additional hundreds to thousands of dollars to fix what's not covered.

It's very important to read your contract carefully, know the different levels of coverage available and more specifically what coverage you are buying.

To Sum This Up

Be sure to know the different coverages available, including deductible options, and verify that the coverage you are buying is correctly stated on your warranty contract.

I would always recommend buying the highest level of coverage that your new car (or near new) qualifies for, as this will eliminate any uncertainty if the car needs to be repaired.

The prices really do not vary that much from the most basic of coverages to the top of the line factory extended warranty coverage and it's well worth the additional small investment.

Return from Factory Extended Warranty to Vehicle Extended Warranty

Go to Insider Car Buying Tips home

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.