A car warranty typically can last between three and five years when the vehicle is new. For used cars, dealers grant a three-month warranty. If you have a warranty covered by the dealership, there may be stipulations about only servicing the vehicle with them to maintain the warranty status.

Loans Unlimited is made up of a team of finance experts that will help you understand what warranties are, their coverage, and extended warranties. These pieces of information are necessary when you buy a car.

Standard or

Manufacturer’s Warranty
vs Extended Warranty

Most people understand that when you buy a product, it comes with certain guarantees of quality and longevity. Warranties are automatically awarded to you when you buy a brand new product. For cars, the warranty period is often applied to parts and labour. The coverage is valid for a significant period and usually up to a certain distance. Warranties provide a guarantee of excellent workmanship. Plus, they give you peace of mind knowing that you do not have to pay for issues should they arise within their duration.

Cars and other accessories installed in the factory or through dealerships are typically covered. You may want to refer to your owner’s manual to know the exact coverage of the warranty.

The conditions differ, but it is normal to find a warranty of at least three years or 100,000km, whichever comes first. There are brands, however, that provide unlimited warranty on kilometres.

On the other hand, an extended warranty works like a bonus. The manufacturer of your car may not offer an extended warranty cover. If you do find that it is present, the coverage usually works just like a regular warranty. Extended warranties are worth having. They work longer than the original warranty that the manufacturer provided you with.

When you want extra coverage or if you think the standard warranty is too short, consider getting extended warranties.

Benefits of

Car Warranties

Warranties are essential since they mainly work like insurance. They protect you from significant costs brought about by car breakdown, specifically those due to mechanical failure. For example, the car has faulty airbags. Such a thing can occur even with reputable brands.

There are various forms of motor vehicle warranties, and all these choices are beneficial for you as the car owner. Simple products are focused on maintenance and repair. Others give you a chance to hold the funds, which means you take the risk on your own. If the car breaks down, you already have the necessary budget for its repair.

Note: Car warranties do not include accidental damage and normal wear and tear. If you need financial assistance for routine maintenance and other services, you may opt for a personal loan. Another alternative is to go for mechanical breakdown insurance if the car is faulty.

Car Warranty FAQs

All new cars are subject to a warranty from the manufacturer, which guarantees that the vehicle is of “acceptable quality” or meets safety, durability, and appearance expectations. The warranty covers repair or rectification costs of defects of the car itself and usually the factory or dealership-fitted accessories.

However, new car warranties have limitations, specifically on normal wear and tear and accidental damages, which are not covered. Taking your new car for regular or scheduled maintenance and servicing is not covered by the warranty.

Check the duration of the warranty, along with what’s covered and what’s not to be certain. Standard factory warranties typically last from three to seven years with a set maximum number of kilometres.

Under the Australian Consumer Law (ACL), you will be granted a warranty with no additional fees upon purchasing a car, whether it is new or used. However, warranties are only for second-hand vehicles purchased from a licenced dealer or chattel auctioneer. This type of warranty is called statutory warranty, which applies to vehicles with less than 160,000km odometer on the day of sale. The car should also have a build date of 10 years or newer before it was sold.

This warranty covers most defects that prevent the vehicle from doing what it is supposed to do. However, it does not entail tyres, batteries, airbags, and radiator hoses.

It’s important that you read the extended warranty’s terms and conditions carefully. Some manufacturers and vehicles have attractive extended warranties, but they are all different. Typically, an extended warranty offers the same coverage as the manufacturer’s standard warranty. This type is usually worth the cost.

On the other hand, if it comes with a hefty price and covers specific items at a minimal cost, you may want to skip it. This extended warranty may even require you to go to one particular dealership for service, which may not be a good option depending on your situation.

In some instances, the vehicle manufacturer may turn down your claim for the warranty. Often, it is due to the evident lack of maintenance.

In many cases, however, warranty claims are refused because the customer has chosen to replace parts of the vehicle with a non-genuine accessory or attachment that may have caused the damage. Similarly, selecting an independent mechanic or repairer, which then led to the malfunction of the vehicle, will prompt the manufacturer to reject the warranty claim.

It is not required to go to only one dealership for your car’s maintenance or repair to keep the vehicle’s warranty. However, you should be certain that the service centre is authorised or licenced. If new accessories or parts will be fitted to your car, they should only be genuine or Original Equipment Manufacturer (OEM) items. If you fail to follow these conditions, your warranty will likely be void automatically.

This rule does not merely apply to the accessories and parts; you should also ensure all lubricants and fluids used are based on the manufacturer’s specifications.

Apart from the vehicle warranty, the consumer may also receive a dealer guarantee. If you have a problem with the vehicle, you can choose where to file the claim, whether under this particular guarantee, the manufacturer’s warranty, or the ACL.

The dealer guarantee places a legal requirement on the dealership that all vehicles they sell should be repaired or rectified to achieve a reasonable condition. This guarantee applies to both new and old cars. In the case of second-hand vehicles, the dealer guarantee cannot be extended to the next owner of the car if ever the buyer chooses to sell it to another person.

How We

Can Help

Loans Unlimited serves as an accredited intermediary for motor vehicle warranties. Our experience in the industry makes it easy for us to look for ways that will help minimise the impacts of unanticipated events. We can help you protect your asset by claiming your motor vehicle warranty correctly.

Contact our team on 1300 212 200 today.

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