There are two types of warranties that come with a new car -- the standard (and so-called "bumper-to-bumper") warranty and the powertrain warranty.
The standard warranty is like a comprehensive insurance policy and covers the entire vehicle and its systems -- everything from the paint to the lug nuts -- with the exception of normal wear and tear items such as brake pads, filters and fluids and so on. (There are also exceptions in most cases for damage or problems attributable to "abuse" -- which can be defined as failing to have the vehicle serviced and maintained per the factory recommendations.)
The powertrain warranty typically lasts longer -- but its coverage extends only to the engine, transmission and drive axle. A major engine failure would be covered -- but peeling paint would be your problem.
Surprisingly, the vehicles with the best standard warranties aren't necessarily Japanese imports. While the mainline Japanese brands (Honda and Toyota) enjoy a reputation for better-than-average quality, the standard warranties on their 2007 model year vehicles are only good for three years and 36,000 miles. General Motors now offers a standard four year/50,000 mile warranty on all Buick, Cadillac, Saab and Hummer models -- matching BMW, Volvo and Mercedes-Benz. GM has also introduced a 5-year/100,000 mile powertrain warranty, surpassing the coverage offered by BMW, Mercedes and Volvo -- all of which offer four year/50,000 mile powertrain warranties in addition to their standard warranties.
Honda's powertrain coverage extends to five years/60,000 miles -- while Toyota's is slightly less generous at five years and 50,000 miles. (Hybrid vehicles like the Civic hybrid typically have additional/separate warranty coverage on their hybrid-specific components; in the case of the hybrid Civic, this extra coverage is good for eight years and 80,000 miles.)
The Korean automakers -- Hyundai and Kia -- continue to offer some of the best standard and powertrain warranties in the industry. New 2007 model year Kias, for example, come with five-year/60,000 mile standard warranties -- and 10-year/100,000 mile powertrain coverage. Hyundai cars come with the same 5/50k and 10/100k coverage as well.
Ford and Chrysler remain near the bottom in terms of the generosity of their warranty coverage. Their standard warranties are good for just three years and 36,000 miles -- although Ford's recently upgraded five-year/60,000 mile powertrain coverage (six years and 60,000 miles for Lincoln models) is better than Chrysler's minimalist three-year/36,000 mile powertrain coverage -- scaled back from the previous seven-year/70,000 mile deal that had been offered until last year as inducement to attract buyers.
Several manufacturers also offer free roadside assistance, in addition to their standard and powertrain warranties. In the case of makes/models with skimpy warranty coverage -- and all that implies about the manufacturer's confidence in the long-term durability of its vehicles -- having access to a tow service might be some comfort.
For vehicles not backed-up with long-lived warranties, you might want to give thought to purchasing an extended warranty, if available. You may even be able to negotiate for the inclusion of its cost in the final purchase price of the vehicle.
An extended warranty can pay for itself very quickly -- and sometimes, many times over -- if you happen to buy a car that ends up needing a new transmission, rebuilt engine or other big ticket repair.
And the peace of mind is priceless.
