What Is a Powertrain Limited Warranty?

The Magnuson-Moss Act of 1975 -- the lemon law -- regulates the sales of all new products that have a manufacturer's warranty worth over $25. Federal legislation requires that all new cars come with some type of warranty.

General Warranty

• A car warranty is a guarantee that the product meets minimum standards and specifications; otherwise, it can be labeled a lemon and is subject to a required buyback by the manufacturer. The type of warranty and the terms and conditions vary, and buyers should understand them thoroughly before purchasing the vehicle.

Powertrain Limited Warranty

• The powertrain refers to the engine, transmission and drive train assembly of a car. A powertrain limited warranty is a minimal warranty that covers these basic parts.

Terms and Conditions

• Since a powertrain limited warranty only covers about a quarter of the vehicle, the terms -- in mileage or years -- are usually longer than a basic warranty.