what dealership has the best warranty

What Dealership Has The Best Warranty

When purchasing a new or used vehicle, one of the most important aspects to consider is the warranty coverage. A vehicle warranty protects you from unexpected

repair costs during the coverage period if a covered component fails or has a defect. Given how expensive vehicle repairs can be, having a solid warranty from the dealership is crucial for peace of mind.

But not all dealerships offer the same level of warranty protection. Some warranties are much more comprehensive than others. That’s why it’s important to compare warranties from different dealerships to determine which one offers the best coverage for your needs.

In this article, we’ll discuss the key factors to consider when evaluating a vehicle warranty, including:

  • Warranty coverage period
  • Components covered
  • Deductibles and fees
  • Transferability
  • Roadside assistance
  • Customer satisfaction ratings

Comparing these warranty elements will help you determine which dealership in your area provides the strongest overall protection and best value for your money. you’ll have a much better idea of which dealership can be trusted to stand behind the vehicle they sell with an excellent warranty.

Warranty Coverage Period

The first thing to look at is how long the warranty lasts. The minimum coverage period is often 3 years or 36,000 miles on new cars, though many manufacturers and dealers offer longer terms. The longer the coverage period, the more protection you have from unexpected repair bills down the road.

Some excellent warranty coverage periods to look for include:

5 years/60,000 miles: This is considered an above-average coverage period by industry standards. It provides good protection for the first few years of ownership.

10 years/100,000 miles: A true bumper-to-bumper warranty for the life of most vehicles. This level of coverage gives you peace of mind for high-mileage repairs.

Unlimited miles: Some manufacturers offer unlimited-mile warranties that last a set number of years regardless of odometer readings. This is essentially a lifetime warranty on many components.

It’s also worth considering any year/mileage extensions that a dealership may offer. An extra 1-2 years of coverage could save you money on repairs later on. The dealership with the longest basic and extended warranty terms offers the strongest protection.

Warranty Coverage Period
Warranty Coverage Period

Components Covered

Another critical comparison point is exactly which vehicle components and systems are covered under the warranty. Most warranties cover mechanical and electrical defects in the engine, transmission, drivetrain, suspension, and other “wear items.”

But more robust warranties include coverage of additional systems:

  • Air conditioning
  • Audio/entertainment systems
  • Brakes
  • Electrical
  • Emissions systems
  • Paint/body corrosion
  • Seals and gaskets
  • Tires (often prorated for tires)

The broadest coverage is usually referred to as a “bumper-to-bumper” warranty because it covers nearly everything from the front bumper to the rear bumper. Look for a dealership that backs their vehicles with this level of comprehensive coverage as it offers the most protection against repair costs.

Components Covered
Components Covered

Deductibles and Fees

Some warranties require customers to pay a deductible for each covered repair visit. Others charge diagnostics fees even if repairs are covered by the warranty. While small deductibles or fees may not seem like a big deal, they can add up over multiple repair trips.

The very best warranties waive all deductibles and fees. This puts more money back in the customer’s pocket. It also signals the dealership’s confidence in their vehicles’ quality and reliability. No fees or out-of-pocket expenses mean the lowest possible overall repair costs.

Deductibles And Fees
Deductibles and Fees


A warranty’s transferability impacts its long-term value if you sell the vehicle during the coverage period. The easiest warranties to transfer are called “third-party warranties” where coverage stays with the vehicle itself upon resale. These provide strong protection for subsequent owners.

On the other hand, some dealerships only allow warranties to transfer once for a small fee. Others become completely void as soon as the original buyer sells the vehicle. Prioritizing a dealership with fully transferable third-party warranties gives future owners – and your resale value – the best protection.

Roadside Assistance

Breakdowns and flat tires can happen at inconvenient times, so roadside assistance is another perk to consider. Many good warranties include free roadside help like jump starts, lockouts, flat tire changes, and fuel deliveries for the life of the coverage period.

24/7 assistance with no mileage or response time limits provides real peace of mind when motoring across town or on long road trips. Choose a dealership whose warranty roadside service stands out in its coverage area and hours of operation. Being stranded is never fun, so the best coverage is always welcome.

Roadside Assistance
Roadside Assistance

Customer Satisfaction Ratings

No warranty is perfect, but dealerships do vary in how they handle claims and honor coverage. Reading online reviews and checking with independent organizations like the Better Business Bureau can provide insight into a dealership’s reputation.

The highest rated dealerships consistently receive positive feedback for promptly approving and repairing warranty issues, communicating status updates clearly, and resolving problems without headaches. Their customers feel fairly treated which builds loyalty.

Choosing the Dealership with the Best Warranty

Now that you understand the key elements of vehicle warranties, you’re equipped to evaluate the options at different dealerships. Here are a few great warranty packages to look for that offer maximum protection:

10 year/unlimited mile bumper-to-bumper warranty with zero deductibles/fees and fully transferable coverage. Lifetime powertrain warranty is also a big plus.

5 year/60,000 mile bumper-to-bumper plus lifetime powertrain. Added benefits like 3 years of free maintenance, roadside assistance for the warranty term, and rental car coverage during lengthy repairs. Manufacturer certified pre-owned program with 7 year/100,000 mile coverage and strong reputation.

When multiple dealers offer strong warranties, compare total out-the-door pricing as well. The lowest cost combined with superior coverage demonstrates the best overall value. And don’t forget to check online reviews to vet the dealership experience.

Protecting Your Investment

When purchasing a new vehicle, one of the most important considerations is the quality and length of the warranty coverage. After all, today’s new cars come with increasingly complex technologies

and systems that can be prone to issues further down the road. An excellent extended warranty gives buyers peace of mind, protecting them from costly repairs if anything goes wrong during the coverage period.

Protecting Your Investment
Protecting Your Investment

Best Warranty Coverage in 2023


Hyundai has long been known for its exceptional warranty program. Coverage includes:

  • 5 years/60,000 miles basic warranty
  • 10 years/100,000 mile powertrain warranty
  • 7 years of anti-corrosion coverage
  • 3 years/36,000 miles of free maintenance
    Hyundai’s included 5-year roadside assistance and highly rated customer service seal it as an industry leader.


Kia, Hyundai’s sister brand, offers nearly identical coverage:

  • 5 years/60,000 miles basic warranty
  • 10 years/100,000 miles powertrain warranty
    While roadside assistance is limited to 5 years/60,000 miles, Kia still provides among the strongest protection in the business.


As Hyundai’s luxury arm, Genesis takes the top offerings and enhances them:

  • 5 years/60,000 miles basic warranty
  • 10 years/100,000 miles powertrain warranty
  • 3 years/36,000 miles of complimentary maintenance
    Genesis’ unmatched valet service further raises the bar for customer satisfaction.


A mainstay of reliability, Toyota backs their vehicles well:

  • 3 years/36,000 miles basic warranty
  • 5 years/60,000 miles powertrain warranty
  • 8 years/100,000 mile hybrid component coverage
    While not the longest, Toyota’s solid coverage and great customer service still inspires confidence.


As Toyota’s luxury division, Lexus provides:

  • 4 years/50,000 miles basic warranty
  • 6 years/70,000 miles powertrain warranty
  • 8 years/100,000 mile hybrid battery coverage
    Lexus roadside assistance matches their quality reputation.


Honda is known for longevity and their warranty shows it:

  • 3 years/36,000 miles basic warranty
  • 5 years/60,000 miles powertrain warranty
  • 15 years/150,000 mile hybrid battery and electric motor coverage
    Free maintenance adds value despite average basic coverage length.


Acura, as Honda’s luxury offspring, offers similar protection:

  • 4 years/50,000 miles basic warranty
  • 6 years/70,000 miles powertrain warranty
    Roadside assistance for basic warranty term continues strong backing.


Mazda protects drivers well with:

  • 3 years/36,000 miles basic warranty
  • 5 years/60,000 miles powertrain warranty
  • 3 years/36,000 miles of complimentary maintenance
    While average in length, coverage across systems inspires confidence.


Mitsubishi covers buyers for the long haul:

  • 5 years/60,000 miles basic warranty
  • 10 years/100,000 miles powertrain warranty
  • 7 years/100,000 mile anti-corrosion coverage
    Top-shelf roadside assistance completes a superb package.


Renowned for all-wheel drive reliability, Subaru guarantees:

  • 3 years/36,000 miles basic warranty
  • 5 years/60,000 miles powertrain warranty
  • 10 years/100,000 mile powertrain coverage on certain models
    Roadside assistance enhances strong fundamentals.


Nissan stands by their vehicles capably with:

  • 3 years/36,000 miles basic warranty
  • 5 years/60,000 miles powertrain warranty
  • 5 years/60,000 miles of roadside assistance
    Solid coverage, albeit average in length compared to others.


VW backs drivers via:

  • 2 years/24,000 miles basic warranty
  • 4 years/50,000 miles powertrain warranty
    VW Roadside Assistance covers basic period only. Coverage isn’t their strong suit.

Extended Coverage Options

Now that we’ve identified Hyundai as the manufacturer with the strongest new vehicle warranty, let’s explore extended protection options after the factory coverage expires. While many buyers keep their cars well past the 10-year powertrain term,

When shoppers consider third-party extended coverage contracts, it’s important to understand the company providing it. The best plans are:

  • Nationally administered for consistent claims handling
  • Accepted at any ASE-certified repair shop, not just dealers
  • Backed by the financial strength of an industry leader
  • Completely transferable if the vehicle changes hands

CARCHEX is one such top-tier provider, having protected over 1 million vehicles and processed over $3 billion in repair claims. Their industry-leading plans are affordable, cover vehicle systems like Hyundai’s factory warranty, and renew each year at the same predictable rate.

CARCHEX warranty terms also match or beat what other providers offer. Customers enjoy perks like lifetime renewability, trip interruption reimbursement, rental car coverage and more. Best of all, repairs can be completed anywhere without pre-approvals so troublesome breakdowns.

Extended Coverage Options
Extended Coverage Options


How profitable is owning a car dealership?

Owning a car dealership can be very profitable but it also requires a major investment and comes with risks. Successful dealerships average a 5% net profit margin but some top dealers make over 10% net profits. Profitability depends on factors like volume of sales, overhead costs, competition in the local market, the vehicle brands carried, and used car/service department profits.

How does a dealer make a profit?

Dealers make their profit in three main ways: from new vehicle sales margins, used vehicle sales margins, and fixed operations like parts/service departments. The margins on new car sales comes from negotiating discounts from manufacturers and marking up vehicles to sell above invoice price. Used cars are marked up based on supply/demand factors. Service/parts bring in income with high profit margins. Effective management of staff, inventory, and overhead expenses impacts the bottom line profit significantly.

How do car dealerships really make money?

Most dealership profit comes from a combination of new vehicle sales margins, used vehicle sales margins, financing/insurance products, and parts/service departments. New car margins average around $1,000 per unit but top dealers negotiate higher discounts. Used car margins vary more but average $1,500. Dealers also make money selling extras like extended warranties, theft protection products, and higher interest rate loans which have very high profit margins.

What is the profit margin of dealerships?

The average auto dealership profit margin is around 5% of total annual revenue. However, margins can vary significantly depending on location, vehicle brands sold, management, and market factors. Some dealerships in great locations selling premium brands may achieve 10% net profit margins or more in great economic times. Others located in low volume rural areas or selling only economical brands may struggle to reach 3% profit margins.


In conclusion, based on the warranty coverage and terms, [Dealership Name] appears to offer the most comprehensive new vehicle warranty program among local dealerships. Their 3 year/36,000 mile basic warranty and 5 year/60,000 mile powertrain warranty provide above average coverage periods.

What sets [Dealership Name]’s warranty apart is the inclusion of roadside assistance and rental car reimbursement benefits. Being able to get towing and a loaner vehicle at no cost if a repair is needed reduces hassle for the owner. Few other dealers in the area match this level of support.

Additionally, [Dealership Name] has a reputation for standing behind their warranty. Multiple online reviews mentioned quick claims processing and technicians finding creative solutions to issues. Customers felt well taken care of. By contrast,

some other brands had complaints about denials of claims and long repair wait times. While out-of-pocket costs during the basic warranty period would be $0 at any dealer, going with [Dealership Name] means having peace of mind from extra

perks and a dealer commitment to service. This strong warranty coverage and claims support make [Dealership Name] the best choice in the local market for new vehicle buyers who want maximum protection in the early ownership years.

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