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Extended Car 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?
Grace Motors is here to clear up any questions you may have in mind concerning an extended motor warranty for your vehicle. Our team will give you the advice to help you make an informed decision about the warranty value protection for your car.
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.
Is Third-Party vs Manufacturer Extended Warranty the same?
Whether you’re getting a new car at a dealership or a used car at an auction, you have to do your homework so as not to get bamboozled by fast-talking salespeople. Be informed that there are two kinds of extended m warranty insurance.
Manufacturer extended warranty
You can get this when the car’s manufacturer offers to extend their warranty beyond the usual period of three to five years.
Third-party extended warranty
Dealerships and finance providers usually offer used car warranty in NSW to first-time car buyers.
Generally, manufacturer extended warranties don’t impose any additional restrictions on servicing your car. The latter might, though. Representatives at car dealerships and finance providers can put anything in the extended car warranty contract you sign.
Extended Car Warranties in Australia – Know Your Consumer Rights
Before you consider getting used car warranty in NSW, you have to know your consumer rights. With the Australian Consumer Law, you can get consumer guarantees that the vehicle you buy will do what it’s expected to do. Car manufacturers are required to continue supporting a vehicle for a reasonable period beyond the warranty.
When your warranty is good for three years and your car’s engine breaks down on the fourth year, you will most likely get support from the manufacturer. Since the Australian Consumer Law is supportive of car buyers in terms of manufacturer warranties, an extended motor warranty insurance on a new car may not offer any value.
Grace Motors is Here to Give You Expert Advice
From new mobile phones to computers and even cars, there is an extended warranty option on anything in the market today. So, you should not be pressured into purchasing an extended warranty for your car. Be wary of salespeople telling you what you can do or what you can’t do when buying a car in NSW.
Let Grace Motors guide you when making a vehicle purchase. Got any enquiries about extended car warranty? Get in touch with our team today so we can give you legal advice.