"The only thing more confusing than a dealership warranty? A magician explaining taxes." - Chase Jordan

Factory Warranty vs Extended Warranty: What’s the Difference and Which One Do You Need?

🤯 So Many Warranties, So Many Questions

You’re buying a car and the dealership hits you with, “Want to add an extended warranty?”

But wait—doesn’t it already come with a warranty?

Let’s break it all down in plain English, so you know exactly what’s covered, what’s not, and when an extended warranty actually makes sense.

🏭 What Is a Factory Warranty?

A factory warranty (also called a manufacturer’s warranty) comes standard with every new car—and sometimes with certified pre-owned cars.

It’s free, well kinda, included in the price, and covers major components for a limited time or mileage.

Here’s what’s typically included:

• Bumper-to-Bumper: Covers most parts and systems (usually 3 years/36,000 miles)

• Powertrain Warranty: Covers engine, transmission, drivetrain (often 5 years/60,000 miles)

• Corrosion & Roadside Assistance: May vary depending on the automaker

⏳ The coverage starts the day the car is first sold, even if you’re the second owner.

🧾 What Is an Extended Warranty?

An extended warranty (a.k.a. Vehicle Service Contract or VSC) is optional and kicks in after your factory warranty expires.

You buy it separately—either from the dealership, a third-party provider, or even later on from your credit union.

What it can include:

• Similar coverage as factory (bumper-to-bumper)

• Some include extras like rental reimbursement, roadside, or trip interruption

• Usually sold in chunks: 3 years/36k miles, 5 years/60k miles, etc.

Cost: Varies widely—can be $1,000 to $3,500 depending on coverage, car type, and mileage

🛑 Do You Even Need an Extended Warranty?

Here’s when it might make sense:

✅ You’re buying a used car outside factory warranty
✅ You plan to keep the car past 100,000 miles
✅ You want peace of mind for potential repairs
✅ You negotiate a good price on the warranty upfront

🚫 Skip it if:

• Your car is still under full factory warranty

• You plan to trade or sell in 2-3 years

• You don’t want to finance the cost into your loan

💡Deal Guard Pro Tip: Don’t feel pressured to buy an extended warranty on the spot.

You can often buy later!

🔒 How Deal Guard Has Your Back

As the most trusted car buying concierge in Canada and the US, Deal Guard helps you:

• Review warranty contracts BEFORE you commit

• Compare coverage terms between brands and providers

• Avoid overpriced or unnecessary extras

• Decide if an extended warranty fits your driving habits

We’re your personal car buying advocate—protecting your time, money, and long-term peace of mind.

👉 Learn how Deal Guard protects you from shady warranty pitches

🧠 Final Thought

The best warranty is one you understand—and choose because it fits your real needs, not because it was pushed on you.

With Deal Guard, you’ll always know what’s covered and what’s just sales fluff.

👋 From Chase:

Warranties should protect you—not confuse you.

At Deal Guard, we explain every detail, cut through the fluff, and make sure your deal is smart from start to finish.

🚗 See how we help drivers across the U.S. and Canada buy with confidence at GETDEALGUARD.COM or FUNNEWCAR.COM.

See you out there,
Chase Jordan