How to Get The Best New Car Warranty

Not all new car warranties are a great deal. Consider what most warranties for products you buy are really designed to do--protect the seller. So when you are looking for a new car, you need to be shopping for a good warranty as much as you are shopping for the right color and options.

You will typically find two parts to any new car warranty. There is the "bumper to bumper" part, which covers everything but your tires and brakes, and the powertrain part, which covers everything that moves your car, like the transmission and engine. These warranties usually cover your car for a certain number of years, or a certain number of miles, whichever comes first.

When you are shopping for a car, you should be asking questions to find the right vehicle for the right price. Some of those questions should specifically deal with the new car warranty you'll get, such as:

What is covered?
For how long?
Is rust and corrosion damage included?
Does the warranty provide roadside assistance if your car breaks down?

A new car warranty that is good for 10 years or 100,000 miles might sound like a great deal, but don't forget the fine print. What's specifically included and excluded? Details count. You might not be a car expert, but if your dealer can't explain things in plain language, it might be good to shop around some more.

In particular, consider going prepared with a few scenarios to ask about. For example, if your car hits a pothole and you found out later that it threw something off in your engine, is that covered? Do you have to jump through any hoops and deal with any hassles?

Once you've determined what the basic warranty (sometimes called the factory warranty) covers, you'll be in better shape to determine if you need or want some kind of extended warranty coverage.

An extended warranty is basically insurance for your factory warranty. It is a service contract that guarantees you lower rates on parts and repairs. You can get an extended warranty through the car dealer, or from a third party in what's called the aftermarket.

An extended warranty is a bit like buying health insurance. You will need to shop around, compare deductibles, determine if the company selling the warranty is a good company to do business with, find out if the warranty is transferable when you sell your car, etc.

Do not be afraid to ask your dealer to do some legwork for you when it comes to extended warranties. Some car manufacturers (like Ford) do offer their own branded extended warranties, but dealers often make less money on those than they do by selling aftermarket extended warranties. If you press them, though, they'll give you the branded extended warranty, which can give you some additional piece of mind that you're getting the "official" version.

Car warranties are not mysterious, but do not assume you'll be getting a good one. Make it part of your car shopping menu so you're shopping for the future of your car, not just for the here and now.