Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.

If you’re thinking of buying an extended warranty on a new car, you may be wondering whether it’s a good investment to make. The answer depends on the kind of coverage you’re looking for. The auto warranty experts at CARCHEX will walk you through what’s covered by factory warranties and extended warranties, how to find coverage that’s right for you, and when’s the best time to buy.

To speak to one of our experts and get a free quote, call 866-261-3457 or fill out our online form.

What Is an Extended Warranty?

As a type of vehicle service contract, an extended warranty covers the costs of repairs to your car after the manufacturer’s warranty expires. Typically, factory warranties on new cars last a few years, then the owner assumes the risk if something goes wrong down the road. An extended warranty protects you from that risk.

Why Do I Need Extended Coverage on a New Car?

If your car is new and you have coverage from the manufacturer, do you need an extended warranty? Here are some reasons why buying an extended warranty for your new car can help you protect your car and your wallet—and give you peace of mind.

Consumers Can Tailor Extended Car Warranties to Fit Specific Needs

Auto manufacturers generally sell off-the-rack warranty plans at preset prices. If you buy an extended warranty from a third-party warranty company, you can tailor that coverage to protect you where the factory warranty does not. We recommend checking sources like Consumer Reports, J.D. Power, and RepairPal to determine the car’s reliability, paying attention to common repairs drivers encounter and making sure your contract covers those.

Extended warranty prices can often be customized to your budget, so the payments are more manageable than a costly repair would be.

An Extended Warranty Covers Your New Car’s Technology

With today’s cars including more and more high-tech features, the electronics and computer systems have become more complex. When a technology component fails, it can be very expensive to find the problem and get it repaired. Protecting your vehicle’s technological systems is one reason drivers choose to buy an extended auto warranty.

If You’re Protected Longer, You Can Drive Longer

You just bought a new car and you want to get the most out of it. Many factory warranties last just three years or 36,000 miles (whichever comes first). With extended protection, your new car can continue to function its best for as long as you need.

More Repair Choice with Third-Party Extended Warranties

Manufacturer’s warranties on new cars, and even extended warranties sold by car dealerships, often require you to take your car to specific dealerships when you need a repair. This means that you can’t stay with the mechanic you know and trust—it’s a dealership or nothing. Third-party companies let you choose which repair facility services your vehicle.

When Should I Buy an Extended Car Warranty on a New Car?

When you should buy an extended warranty for a new car depends on who you want to provide the coverage. Most automakers require you to buy an extended warranty before the factory warranty runs out. That gives you the first few years of ownership to decide.

Third-party warranty providers like CARCHEX allow you to buy the warranty whenever you would like, because we cover new, used, and certified pre-owned vehicles, including those with over 100,000 miles.

We recommend buying an extended warranty right before your factory warranty expires, so you get the best price and there isn’t a gap in your coverage.

When Does My New Car Warranty Expire?

You’ll find that most factory warranty terms vary per make, model, and year. Most manufacturers provide a bumper-to-bumper warranty and powertrain warranty:

  • bumper-to-bumper warranty covers all components of your car’s major systems minus a short list of exclusions.
  • powertrain warranty protects basic components such as the transmission, engine, axles, and drive shafts.

The chart below gives a general overview of what auto manufacturers offer for new vehicles:

ManufacturerBasic WarrantyPowertrain Warranty
Buick3 years / 36,000 miles5 years / 60,000 miles
Chevrolet3 years / 36,000 miles5 years / 60,000 miles
GMC3 years / 36,000 miles5 years / 60,000 miles
Dodge3 years / 36,000 miles5 years / 60,000 miles
Ford3 years / 36,000 miles5 years / 60,000 miles
Honda3 years / 36,000 miles5 years / 60,000 miles
Nissan3 years / 36,000 miles5 years / 60,000 miles
Subaru3 years / 36,000 miles5 years / 60,000 miles
Toyota3 years / 36,000 miles5 years / 60,000 miles
Hyundai5 years / 60,000 miles10 years / 100,000 miles
Kia5 years / 60,000 miles10 years / 100,000 miles
Infiniti4 years / 60,000 miles6 years / 70,000 miles
Volkswagen4 years / 50,000 miles5 years / 60,000 miles
Volvo4 years / 50,000 miles4 years / 50,000 miles
Mazda3 years / 36,000 miles5 years / 60,000 miles
Chrysler3 years / 36,000 miles5 years / 60,000 miles
Mitsubishi5 years / 60,000 miles10 years / 100,000 miles
BMW4 years / 50,000 miles4 years / 50,000 miles
Fiat4 years / 50,000 miles4 years / 50,000 miles
Mercedes-Benz4 years / 50,000 miles4 years / 50,000 miles
Jeep3 years / 36,000 miles5 years / 60,000 miles
Audi4 years / 50,000 miles4 years / 50,000 miles

Note that these warranties don’t cover normal wear and tear—they only cover repair costs (parts and labor) for faulty material or workmanship. Deciding to continue this level of protection when you buy a new car can save you money in the long run.

Benefits of CARCHEX Extended Warranties

There are more than just a few reasons to choose CARCHEX for your extended warranty. Our customers enjoy a long list of benefits that come with our Extended Vehicle Protection Plans:

  • Low monthly payments—Our payment plans can fit comfortably into any budget, and we require no down payment to get started.
  • Claims paid directly to the repair shop—We will never make you foot the repair bill covered by your CARCHEX warranty and then wait to be reimbursed. CARCHEX pays the repair facility directly, so you don’t have to.
  • Your choice of repair shop—We partner with more than 30,000 repair shops across the U.S., so whether you prefer a car dealer, a national chain like Pep Boys or Firestone, or the local mechanic down the street, you’re sure to find one you know and trust.
  • 30-day money-back guarantee—We stand by our products and services. If you’re not completely satisfied with your warranty, you can cancel your plan and get your money back.
  • Added benefits—We include trip interruption protection, rental car reimbursement, towing, and roadside assistance with our extended warranty plans.
  • Low deductibles—When a breakdown arises, you will pay as low as $0 to have your car repaired.
  • Partnerships and endorsements—We have partnerships with several industry-leading companies and organizations, such as Kelly Blue Book, CARFAX, RepairPal, and the Vehicle Protection Association, that endorse our services.

CARCHEX Extended Warranty Plan Options

CARCHEX offers five extended warranty plans that are affordable and can be tailored to the needs of individual customers. New and used cars—even vehicles with over 100,000 miles—can be protected from unexpected repairs with our plans, which range from bumper-to-bumper to powertrain coverage. The table below breaks down these plans:

PlanDescriptionCoverage Length
TitaniumThis is the highest level of coverage, otherwise known as a bumper-to-bumper warranty. It covers all components of your vehicle, minus a short list of exclusions.Up to 10 Years
PlatinumThis is the second-highest coverage available, with an extensive list of components covered for all of your vehicle’s major systems.Up to 10 Years
GoldThis plan provides comprehensive warranty coverage for the major systems of your vehicle. Its terms are flexible, so it’s a good option for vehicles with over 60,000 miles.Up to 10 Years
SilverThis plan covers the essential elements of your major systems. Just like the Gold plan, it is best for high-mileage vehicles.Up to 7 Years
BronzeThis is the lowest level of coverage, also known as a powertrain warranty. Only the most expensive components, like the engine and transmission, are protected.Up to 6 Years

Protect Your New Investment with CARCHEX

Our customer service is backed by an A+ rating and accreditation from the Better Business Bureau. You can expect our team to take a consultative approach and answer all of your questions. Talk to our warranty specialists today to learn about buying an extended warranty on a new car. You can get a free quote instantly by calling us at 866-261-3457.


JD Power: http://www.jdpower.com/cars/articles/tips-advice/pros-and-cons-buying-extended-warranty-car

Better Business Bureau: bbb.org/greater-maryland/business-reviews/extended-warranty-contract-service-companies/carchex-in-hunt-valley-md-23015869