Vehicle Warranty

So, you’re thinking of getting a New or Used car at a dealership. But then, you’re having second thoughts as you heard the term “extended car warranty.” You must have come across this page looking for answers on whether it’s worth buying an extended warranty?

What is an Extended Car Warranty?

This term is a misnomer as it isn’t actually a warranty. Instead, it is an extended vehicle warranty insurance policy or a service contract on a vehicle to safeguard it against expensive repairs. This covers repairs for an agreed-upon period of time and kilometres. To avoid confusion, we’ll stick to the term extended warranty as it is the term used most commonly within the auto industry.
An extended vehicle warranty in Australia can be applied to both new and used car purchases via dealerships. It kicks in after the OEM or Original Equipment Manufacturer’s warranty ends, although its covers might be different.

It’s crucial to read the terms and conditions as well as the product disclosure statement (PDS) as there’s no set list on what an extended warranty covers. The most common used car warranty in NSW includes cover for parts on the engine and transmission, while others offer bumper to bumper policies that cover everything that makes up the car. Regardless of the warranty, normal wear and tear isn’t covered in an extended motor warranty in Australia.

Don't hesitate to contact one of our friendly staff to discuss your warrant options!