A factory warranty, also known as a manufacturer’s warranty, is offered by the vehicle manufacturer to the buyer at the time of purchase. This warranty covers the cost of repairs or replacement of defective parts that occur during a specific period of time and mileage, like 3 years or 30,000 miles. Factory warranties typically cover major components of the vehicle, such as the engine, transmission, and drivetrain. They may also include other components, such as electrical systems and air conditioning.

While vehicle warranties are commonly incorporated into the purchase of new or certified pre-owned vehicles, they can also be procured independently from third-party providers as extended vehicle warranties for used cars.