An Explanation of Car Warranties in Australia
Finance Funding Australia
Car Finance, Car Finance Melbourne, Car Leasing Melbourne Car Loans Melbourne, Caravan Finance, Caravan Loans, Eq
After you apply and qualify for a car loan, it’s time to start thinking about the costs you may incur during ownership of the vehicle. The purchase price is the first investment you make into the car, and if you couldn’t pay for the car up front then you’re reminded each month about your investment when you have to make your monthly payment. But your car will cost you more than the purchase price if you own it for an extended period. That’s why it’s important to understand the different warranties available to you and whether or not investing in extended warranties is a good idea.
Types of Car Warranties
After you’re done dealing with the finance broker in Melbourne who helped you get a loan, it’s time to talk to the dealership about warranties. A statutory warranty is one that automatically requires a dealership to fix any defective parts for up to a year after purchase. Some statutory warranties may go longer, but most dealerships offer a general one year or 20,000km warranty because that’s the only legal requirement.
A manufacturer’s warranty comes directly from the manufacturer of your vehicle. This warranty extends beyond the statutory warranty, usually lasting anywhere from two to three years after you purchase the vehicle. This warranty will cover all of your vehicle’s operating system including but not limited to the brakes, engine, air conditioning, and steering mechanism. In some cases your car’s battery is also covered, but this warranty is sometimes separate and for a much shorter duration than a manufacturer’s warranty.
If you took out a car loan on a used vehicle, you will still qualify for a statutory warranty of three months or 5,000km. The warranty will cover the same parts as a new car warranty; it just doesn’t last as long. You may also opt for an extended warranty that extends not only the duration of the warranty, but may include parts of the vehicle not included in the original warranty.
Non-Warrantable Cars and Trucks
If you took out a truck loan on a truck that’s more than 10 years old or has over 160,000km on it, you probably won’t qualify for any sort of warranty. The truck will sell with a slip that deems it unwarrantable but able to drive on the roadways. The only warranty that your truck is eligible for is if you put new components on it that come with a manufacturer’s warranty. Once you understand the types of warranties available, it’s important to read the fine print and make sure that the warranty you choose is right for your needs.
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