What Does A Car Warranty Cover?

Car Warranty Coverage

In the event your car warranty covers it, you can repair vehicle problems, as car warranties typically cover a limited area. Both new and used cars purchased from a dealer come with warranties, but the terms of the warranties for new and used cars are different.

In the event of mechanical or design flaws, a new car warranty will cover the repair or replacement costs, as well as any accessories the car's manufacturer or dealer has installed. A car warranty does not cover damage caused by accidents, normal wear and tear, or regular services and maintenance.

The manufacturer's warranty that comes with a new car specifies which defects the manufacturer agrees to repair and under what conditions. For the most part, factory warranties are only valid for a specific period of time and for a particular number of kilometres.

Accessories installed after the vehicle leaves the showroom may void its warranty, so be careful with what you install. Let's look at what car warranties cover in more detail.

What Does It Mean To Have A Car Warranty?

When you have a warranty on your car, this means that the automobile manufacturer promises to fix any problems that may arise during the warranty period, which includes both parts and labour for repairs. Buying a new car comes with a warranty that typically covers you for a long time.

Within that time period, you will not have to pay for any defects. When purchasing a vehicle, it's a good idea to thoroughly review the warranty document to ensure that you understand precisely what is covered and what isn't.

Any time there is evidence that regular maintenance was not performed, work performed by an unaffiliated repairer caused the problem, or a non-genuine replacement part caused the problem, a vehicle manufacturer has the right to refuse a warranty claim.

Types Of Car Warranties

In order to know what your warranty does and does not cover; you must first understand what kind of warranty your vehicle has. Factory warranties, extended warranties, bumper-to-bumper warranties, and powertrain warranties are the most common types of warranties. All new cars, as well as some pre-owned or used vehicles, are subject to these regulations.

Factory warranty

The first warranty your vehicle receives after it has been released to you is the factory warranty. According to the model purchased, there will be different warranties coverage compared to what you would get if you bought a vehicle from the same manufacturer. In the event of defective parts, the factory warranty is given to new owners to cover the cost of repairs. This and the bumper-to-bumper warranty are two of the most common warranties in Australia.

Extended warranty

The extended warranty is an added layer of protection. Once your factory warranty expires, you have the option of purchasing a warranty extension. It will have the same amount of coverage as the factory warranty, but the manufacturer may exclude some items.

Bumper-to-bumper warranty

A bumper-to-bumper warranty is also known as an exclusionary warranty because it excludes a few parts of the vehicle. Both factory and extended warranties are often included in this type of warranty. Bumper-to-bumper warranties are typically good for three to five years and a specific amount of mileage. Until the designated year of coverage or the mileage limit is met, these will be valid.

Roadside assistance warranty

A roadside assistance warranty is for times when a vehicle is unable to move on its own and must be taken to the nearest service station. If you have a warranty like this, you won't have to pay much, if anything, to have your car towed.

Powertrain warranty

This includes the engine, transmission, axles, driveshafts, seals, gaskets, transfer case if your vehicle has one, and other specific powertrain components. The powertrain warranty will typically last for about five years, depending on how far you drive or if you run out of battery power altogether. Manufacturers vary on whether or not they've included this as part of their bumper-to-bumper warranties.

Does A Dealer Need To Service Your New Car?

You are not required to have your car serviced by a dealership during the standard factory warranty period, according to Australian Consumer Law. You can take your vehicle to an independent repair shop while it's still covered by warranty, and you don't have to worry about voiding the warranty in the process. In order for the work to be done correctly, it must be done with good quality parts, trained technicians, and in accordance with the vehicle's service schedule.

The service logbook of a car will usually have a record of any of these issues. An automobile warranty or any material provided by the manufacturer, including a logbook or other documents, must not make false claims about dealers being required to perform servicing and repairs during the warranty period.

Even if a vehicle is sold with a capped-price service plan or any other kind of service deal, this is still true. Customers should compare prices for maintenance and repairs before making a purchase. If the vehicle needs warranty repairs, you'll have to take it back to the dealer so the manufacturer can pay for the work.

It is probable for the vehicle owner to seek reimbursement for 'reasonable costs' if the dealer refuses to make the repairs within an acceptable timeframe or does not make them at all. This is true even if the manufacturer's warranty covers the repair.

Extended Warranties

What is an extended warranty for a new vehicle?

For an additional fee, you may be offered an extended warranty when purchasing a new car. Extended car warranties are contracts between you and the dealership that provides extra protection. However, extending the duration of the original manufacturers or government warranty may not provide the same level of protection as the original warranty. There may be additional terms and conditions to be aware of.

Is it a good idea to have an extended car warranty?

It is essential to check the terms of the warranty before purchasing an extended warranty for your new car to see if the extra coverage is worth it. Extended warranties can come with strings attached, regardless of whether you pay for them or the dealer offers them for free as an additional incentive for you to buy.

When purchasing an extended warranty, you may be required to have the vehicle serviced at a specific dealership every six months or face additional charges for some repairs if necessary. If you're shopping for extended warranties, make sure you read the fine print and understand precisely what's included before you buy.

Toyota, for example, provides a ten-year/100,000-mile (160,934 km) new car warranty starting in 2020. At the time of purchase, this warranty does not charge an additional fee. However, it does require the vehicle to be returned to the dealership for service. Because the extended ten-year warranty is voided and reverts to the standard five-year and 50,000-mile (80,467 km) warranty if the vehicle is serviced at an independent workshop.

Even if all other servicing requirements are met, the warranty is voided. Additionally, consumers need to make sure that Australian Consumer Law covers these paid extended warranties. In order to make an informed decision, always ask for a booklet outlining the terms and conditions and thoroughly review it before making a final decision.

Used Car Warranties

A statutory warranty is included with all dealer-sold used cars costing around $4000 or more, as well as motorcycles costing about $3500 or more. In addition, warranties have limitations based on the vehicle's age and mileage at the time of purchase. When you buy from a private seller, you don't get a statutory warranty.

Licensed motor vehicle dealers are required by law to provide you with documentation outlining the coverage of a used car warranty. In addition to four-wheel drives, station wagons, and dual-cab Utes, these vehicles also include passenger buses and motor homes. Here are some specific details about used car warranties:

• The vehicle is covered for three months or 5000 kilometres if it is under ten years old and less than 150,000 kilometres has been driven (whichever comes first).

• The vehicle will be covered for a month or 1500 kilometres if the car is between 10 and 12 years old and has not exceeded 180,000 kilometres (whichever comes first).

• A statutory warranty is void if the vehicle is more than 12 years old or has travelled more than 180,000 kilometres.

• If your motorcycle is less than eight years old and/or hasn't logged more than 80,000 kilometres, you'll be covered. A three-month or 5000-mile limit applies to your policy.

• More than 80,000 kilometres or eight years old motorcycles are exempt from statutory warranty coverage.

The Broad Scope Of The Statutory Warranty

Items and defects covered by the statutory warranty include defective airbags, structural rust, brakes, gearbox or automatic transmission faults, oil leaks, and engine defects.

The statutory warranty does not cover:

• Customary services

• Tune-ups

• Batteries

• Tires (must be in good condition at the time of purchase)

• Accessories

• Damage to the vehicle as a result of an accident or abuse

Factors Before Claiming A Warranty Service

Before filing a warranty claim, you should think about a number of factors. In the excitement of buying a car, it is easy to overlook the fine print on the warranty pamphlet. It is a good idea to know what your car warranty covers. There is no such thing as a universal warranty. Here are some of the most important things your car warranty covers:

Parts that break under normal use

The warranty usually covers anything that breaks down because of a defect in the manufacturing process rather than because of misuse or abuse on your part. Suppose you buy a brand-new car, and then a few months later, the engine falls out of the bottom as you pull into your driveway.

You may be able to make a claim even if you've only been driving to and from work, the grocery store, and picking up the kids. To cross the Simpson Desert, for example, you'll need a much larger vehicle than the typical hatchback. No one ever said your three-door hatchback could jump over sand dunes, after all.

So, any problems that result from that wouldn't typically be the manufacturer's fault. Major mechanical components such as the engine, transmission, and significant moving parts such as the drive axle will typically be covered under your warranty. The hybrid power system and batteries are sometimes covered by a warranty that comes with the car.

Authorised service workshop

In some scenarios, you may be required to use a specific service centre or a cluster of service centres near the dealership where you purchased your car. Purchases made across state lines or more than one hundred kilometres from where your car is typically driven can be particularly inconvenient in this regard.

In the event of a warranty claim, it's best to find out in advance where the closest service centres are before you buy the car. Capped price service plans that require you to bring your vehicle to a specific service centre are also affected.

Costs of towing, transportation, and lodging

Your warranty provider should cover the cost of towing to the nearest service centre if your vehicle is unsafe or unable to be driven due to a warranty defect. If your car can be repaired quickly so that you can safely drive it again, you may have a roadside assist allowance that you can use to get it fixed and get back on the road.

However, if this doesn't work, some warranties will cover the cost of transportation back home or within a certain number of kilometres. It's possible that your warranty will cover hotel expenses while you wait for your car to be repaired, or you can negotiate an alternate mode of transportation.

Goodwill Warranty Repairs

Even if you believe that you are entitled to a warranty repair, the terms and conditions may not be in your favour. Or, if something significant goes wrong, your warranty may have expired.

You might be able to get a free repair from your dealer instead of having to fork over thousands of dollars. You might be able to get the problem fixed even if you haven't been very careful with your car maintenance. If you bought your car from a dealer or maintained a regular service schedule, you may be eligible for a "thank you" gift from the dealership in the form of a goodwill warranty repair.

Ensure You Have A Car Warranty

It is critical to make sure you have a car warranty and understand what it covers so that your vehicle is covered if something goes wrong. It's understandable that a car purchaser for a new car would prefer not to incur additional maintenance costs after making such a significant financial commitment to the vehicle.

Nothing is more upsetting than being stranded without a car just a few months after buying it and having to shell out thousands of dollars in repairs. Purchasing an extended warranty from the dealer where you bought your used car is one of the simplest ways to protect your investment.

By using these simple guidelines, you can help to ensure that your car purchase goes smoothly and safely. To find cars that come with warranties, check out dealerships or trusted online platforms that facilitate buying and selling of vehicles. Additionally, you can speak to previous customers or friends and family that have made use of a car buying and selling company.

However, it is vital to note that choosing a trusted and reliable car buying company with years of experience and client reviews is critical. By using a reputable company, you are more inclined to receive excellent customer service and assistance whenever you are in need.