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Manufacturer’s Standard Warranties

At one time, the standard manufacturer’s warranty was 12 months or 12,000 miles, whichever came first. If anything broke during the first year of operation, it was fixed free of charge. There was no deductible. After the initial time or mileage was exceeded, the warranty covered the “powertrain” (engine, transmission/transaxle, driveline, differential, rear axle, and transfer case, if equipped) up to 24 months or 24,000 miles. There was usually a $100 deductible. This setup was the industry standard for decades. Eventually, this $100 deductible powertrain coverage was bumped up to 36 months or 36,000 miles. Later, as manufacturers began to view the warranty as a marketing device, they added the term bumper to bumper, usually for the length of 36/36,000. A bumper-to-bumper warranty included all the items covered in the initial 12/12,000 warranty, but it included a $100 deductible.

The terms of standard warranties on today’s cars are longer than ever, both in miles and months. When you shop for a used vehicle, look closely at the actual written terms of the standard warranty. It it’s still in effect, it should cover everything, including the powertrain, cosmetic things such as interior and exterior trim, and all electrical devices and systems. It should also include a corrosion warranty, which covers all damage caused by rust. A competitive powertrain warranty should be at least 5 years or 50,000 miles, and some manufacturers are even going to 7/70,000. Look for warranty coverage (sometimes as much as 100,000 miles) protecting the finish and/or the body from corrosion, rust and environmental fallout (rail dust, smog, factory emissions, acid rain, etc.)

When you’re buying a used vehicle, ask the seller to show you the actual written terms of any warranty that came with the vehicle when it was new. Ask him whether you have any options, such as a choice between a higher-mileage warranty with a deductible versus an all-inclusive bumper-to-bumper warranty with no deductible, but shorter terms.

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