If You're New Car Shopping, Here's What to Consider When You're Offered Extended Warranties

Most of us know the new-car basic warranty, often referred to as the "bumper-to-bumper warranty," is designed to protect the owner against any factory defects during the first few years of ownership. But did you know this coverage doesn't actually apply to the bumpers? The vehicle's bumpers are considered body panels and so aren't covered.The basic warranty is just one kind of coverage that comes standard on a new car. Here's an overview of new-car warranties and seven things you might not know about them:WARRANTY BASICSA new car comes with a basic or limited warranty, which covers everything except body panels, drivetrain components and wear-and-tear items such as brake pads, oil filters and wiper blades.It also comes with a drivetrain warranty, which covers most of the parts that make the car move, such as the engine, transmission, drive axles and driveshaft. Most carmakers provide roadside assistance. Some also offer free maintenance for a period of time.FINE PRINT ON 10-YEAR POWERTRAIN WARRANTIESAutomakers Hyundai, Kia and Mitsubishi tout their decade-long powertrain warranties, and that's great for new-car buyers who plan to hold on to their car for a while. But if you plan on buying one of those cars used, that 10-year warranty doesn't apply to you. You'll only get a five-year, 60,000-mile warranty dating from when the vehicle was first sold. A partial way around this issue is to buy the car as a certified pre-owned vehicle from a dealership. If there was a 10-year powertrain warranty, you'll get the remainder of that term, probably seven or so years.  Continue reading...