Understanding new-vehicle warranties

The legal warranty: what is it?

The warranty provided by law certifies that the new car you lease or purchase will be free of hidden defects, that it will serve the purpose for which it was designed, and that it will have a reasonable lifespan. The legal warranty is mandatory and free of charge.

What about the manufacturer’s warranty?

The manufacturer’s warranty, also known as a merchant warranty or conventional warranty, covers the cost of repairing defects and breakage that may occur after you purchase the vehicle. Its duration may vary and it contains exclusions—which it’s important to know about and understand. The warranty will be honoured if you make normal use of your vehicle.

Bumper-to-bumper warranty vs. powertrain warranty

Both these warranties are included in the manufacturer’s warranty. They are the two main characteristics to consider, whether you’ve bought a gas-powered, electric or hybrid vehicle. The comprehensive or “bumper-to-bumper” warranty, as its name implies, covers the entire vehicle, while the powertrain warranty covers all the components that make the vehicle move: essentially, the engine and transmission (another way to think of it is that it covers any parts that are bathed in oil). The other characteristics require your attention as well.

The following chart tells you the most common lengths of warranties for the most important categories. The first number is the length in years; the second is represents distance in kilometres. For example, 3/60 means “3 years or 60,000 kilometres.” Corrosion warranties refer to surface (surf.) rust and perforation (perf.), and sometimes an unlimited number of kilometres (unl.) The warranty expires when either of the numbers (time or distance travelled) is reached.

Buying electric? Check the battery warranty

With electric vehicles (EVs), the warranties covering the hybrid or electric propulsion system components are fairly standard. You need to pay close attention to the details of the battery warranty, however. In the case of a defective battery, rather than install a new one, some manufacturers will replace it with one that corresponds more to the vehicle’s age and odometer reading. Also, whether you’ve bought an EV or a gas-powered vehicle, you should have it inspected before expiry of the warranty: if a part has failed or shows signs of excessive wear, you’ll still have time to have it changed or repaired at no cost.

CAA-Quebec compares auto warranties for you

Whether you buy a gas- or electric-powered car, you should know that CAA-Quebec conducts an annual study of manufacturers' warranties in Canada and puts together a comparative chart. At a glance, you can see all of the coverage options provided industry-wide, and find which warranties offer the best value.

Should you add an extended warranty to your vehicle purchase?

As its name suggests, an extended or supplementary warranty complements the manufacturer’s basic (free) warranty. Its duration varies in time and kilometres, and it can include various groups of components. The extended warranty covers the cost of repairs for breakdowns occurring after expiry of the original mechanical warranty. But should you pay for one? It all depends on the vehicle purchased, the terms of the basic warranty, your tolerance of risk, and the length of time you plan to keep your vehicle. As with any contract you sign, make sure to read everything carefully and understand all the specifics.

You should also know that these warranties are not exclusive to dealerships, and it can be worth it to shop around. If you feel you’re being pressured, ask for time to think about your decision.

Do you have to have all maintenance done at the dealership to remain eligible for the warranty?

Not at all. You can choose to have maintenance done at the dealership or at a repair shop you trust. Just make sure to keep all your invoices, so that you can show them to the manufacturer in case of a problem.

CAA-Quebec and Quebec’s consumer protection office recommend always complying with the schedule maintenance calendar; otherwise the manufacturer may claim that a breakdown or malfunction is due to lack of maintenance.