Car Warranties – Things You Should Know

A warranty refers to a promise that your car manufacturer makes to correct any faults occurring during a specific period (warranty period). While buy used car warranty at Warranty and Insurance, you should be aware of the terms and conditions of the warranty of your vehicle and also other types of warranties like an extended warranty. Cost is also important, e.g. BMW extended warranty cost Australia. It’s interesting to know about various types of car warranties and what they cover.

What does a Warranty Usually Cover?

In general, a warranty covers the vehicle itself along with all its accessories (conditional) built-in at the time of the sale. During the period of warranty, if a fault occurs the dealer is obliged to rectify it without any charge. The time taken to fix the fault is added to the warranty period.

Types of Warranties

New Car Manufacturer’s Warranty: This warranty usually exceeds statutory warranty, i.e. it often is 40,000km/2-year or 60,000km/3-year.

New Car Statutory Warranty: This covers you for 20,000 km or 12 months whichever occurs first. It covers all faulty items on a vehicle in most cases.

Used Car Statutory Warranty: This is applicable to all passenger cars that are sold by dealers and are less than 10 years old and 160,000km and not crossing the luxury car tax threshold. The warranty remains valid for 5,000km or three months from the date of purchase. This type of warranty will cover most parts on a vehicle relating to reliability, roadworthiness and safety.

Is the Car’s Battery Covered?

This actually depends on which kind of warranty you have; however, in general, batteries are covered by warranties only on new cars. However, new replacement batteries come with a manufacturer’s warranty.

Should an Extended Warranty be Purchased?

Today there are many types of extended warranties. You should carefully read the offer document including the fine print to check if the warranty will really meet your needs.

If you have sent your car many times to the repairer during the warranty period, but still it has not fixed and the warranty period expires, it is obligatory for the repairer to repair your car and if that fails, you should contact the Department of Fair Trading at 133 220.

Understand New Car Warranties

Buying a new car has one big advantage and it’s the warranty. This is a guarantee that you won’t have to spend for any fault in the car from your own pocket during the set warranty period.

If your car is below the luxury car tax threshold, you should have 12 months or 20,000 km (whichever is first) statutory warranty at least.

But most new cars are available with a longer warranty than this, i.e. 2-year/40,000km, 3-year/60,000km or even 5-year/100,000km.

However, cars priced above the ‘luxury car tax’ threshold are exception to this.

Extended Warranties

Some dealers provide a Honda extended warranty at Warranty and Insurance for an extra charge. This is beyond the manufacturer’s warranty period. Know about it at the same time when you would invite cheap comprehensive car insurance quotes from Warranty and Insurance, for example. Prior to signing, read the document carefully and check whether it’s really beneficial to you.

Understand Warranties on a Second-hand Car

Statutory warranties on a second-hand car are available only if you purchase through a dealer. Every state has different laws when warranties are concerned.

Under the warranties, you are basically covered for the vehicle and all its accessories built-in at the time of purchase, but don’t get a cover for superficial damages, for example, to upholstery or paint, or ordinary wear and tear.

Also you don’t get a cover for:

  • Items enlisted on the defect notice
  • Tune ups
  • Routine services and adjustments
  • Tyres
  • Batteries
  • Faults occurring due to an accident or misuse of the car (e.g. motorsport)

Joanna S. Tyler

Joanna S. Tyler has designed to allow guest bloggers to post their unique, interesting and informative content for peace park readers. He does blogging himself and contributes to several blogs including

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