It doesn’t matter whether it’s a sizzling sports car or a milquetoast economy sedan; eventually, it breaks down.

The question is how much the owner will then be on the hook for – and, increasingly, the answer is favoring consumers.

Warranties are becoming more important as the slowing economy forces more consumers to hold on to cars longer. The median age of cars on U.S. roads last year was 9.2 years, which ties the previous year’s record high, according to a recent report by R.L. Polk, an automotive consulting firm.

First, there were five-year, 50,000-mile warranties. Then deals covering seven years or 70,000 miles of driving, and even 10-year, 100,000-mile deals.

In the clearest example yet of how automotive warranties are becoming turbocharged, Chrysler is offering a lifetime powertrain warranty, which protects the engine, transmission and drivetrain.

“It’s really good news for consumers and benefits them much more than moonroofs and special interiors,” said Jack Gillis, a spokesman for the Consumer Federation of America, an advocacy group in Washington.

General Motors, Ford and Chrysler have upgraded their warranties during the past two years, to counter impressions that the quality of their cars doesn’t match competitors such as Toyota and Honda, said Phil Reed, senior consultant for Edmunds.com, an automotive research Web site.

“The warranty is a reflection of the perception of the car, not necessarily the reliability of the car,” Reed said. “Buick is as reliable or more reliable than Toyota.”

As more car models become similar in price, style and features, a better warranty can become crucial to a car buyer’s choice, eliminating the pressure to buy an extended-service contract, which typically costs between $750 and $1,500.

About 5 million people buy extended warranties every year, according to the Service Contract Industry Council. The contracts cover components outside of a factory warranty such as air conditioning units or electronics.

It can be difficult for consumers to compare new-car warranties. Chrysler, for example, says its lifetime powertrain warranty is the best in the industry. Meanwhile, Korean automaker Hyundai says it has “America’s best warranty,” a five-year, 60,000-mile guarantee that covers most parts of a car and 10-year, 100,000-mile coverage of the engine.

For consumers, the key is to read the details, especially a warranty’s exclusions, said Jack Nerad, executive editorial director for Kelley Blue Book, an automotive research guide.

“It might have a deductible, coverage limits, and might require adhering to some kind of maintenance schedule,” Nerad said.

Not getting the oil changed at the recommended times, for example, can void the warranty and take the automaker off the hook.

Even a lifetime warranty has strings attached. In Chrysler’s case, the warranty cannot be transferred to a second owner.

One thing customers should consider when shopping for a warranty is how long they expect to keep the car, said Thom Blackett, senior road test editor for MyRide.com.

“If you are going to drive the car into the ground, then a lifetime warranty is perfect for you,” he said. “If you are going to trade it in after a few years, then you might want a longer basic warranty.”

Strong warranties are useful devices for car dealers, says Tom Libby, director of automotive analysis for the consumer-research firm J.D. Power & Associates. “It’s a way to become more competitive for relatively low cost,” he said. “If you have someone sitting across from you, trying to decide between car A and car B, it can help close the sale with a lifetime warranty.”

Chrysler would not quantify how its lifetime warranty has improved sales.

“It has improved our closing rates, which produces sales,” said Chrysler spokesman Patti Georgevich. Chrysler sold 2.07 million vehicles last year, down 3 percent from the previous year.

Hyundai first offered a 100,000-mile powertrain warranty in 1998 because of perceptions about the brand’s quality, which have since improved dramatically.

The Consumer Federation rates Hyundai’s basic warranty “very good” along with those offered by Mitsubishi, Saab, Audi, Volkswagen and BMW. Chrysler’s is rated “average.”

Hyundai’s warranty helped boost the Korean automaker’s sales fourfold since 1998, to more than 467,000 vehicles last year, said John Krafcik, vice president of product development and strategic planning for Hyundai.

Chrysler’s Georgevich pointed out Hyundai’s basic warranty covers paint and radios for three years, not five. Defending Chrysler’s warranty, she said, “Most of the significant and costly repairs to a vehicle are in the powertrain.”

Hyundai’s Krafcik said that doesn’t matter. “What consumers tell us is they prefer a longer bumper-to-bumper warranty and a 100,000-mile powertrain warranty,” he said. “Very few people hold onto their cars for more than 10 years, and Chrysler knows that.”

Japanese automakers mostly do not offer long warranties. The Consumer Federation rated Honda’s overall warranty, which covers the powertrain for 60,000 miles, “very poor.”

“Honda typically has the worst warranty every year,” Gillis said.

Honda spokesman Chris Naughton said people don’t buy Hondas for the warranty. “We are held to a high standard by our customer for the quality of the car,” he said.

JM END PERONE

(Joseph R. Perone is a staff writer for The Star-Ledger of Newark, N.J. He can be contacted at jperone(at)starledger.com.)

2008-03-03-NEWCAR-WARRANTIES

AP-NY-03-04-08 1104EST