Extended Warranty

When you purchase a brand new car, or most brand new items, the manufacturer will provide a warranty with their product and this would in most cases resolve any issues or defects outside of neglect, or fair wear and tear.

Usually those warranties will have a set time in regards to coverage, or with vehicles, the warranty will also expire when it reaches a certain limit on the odometer reading if it occurs prior to the length of time the warranty is applicable.

There are a range of providers that will extend the length and odometer limit of your warranty. These warranties would in most cases mirror what the Manufacturer’s Warranty would cover, taking your warranty to a further 12 months to 36 months past the cover of the manufacturer, dependent on the term you request in your policy. This would be classed as an extension of the Manufacturer’s Warranty.

With an extension of the Manufacturer’s Warranty, they are classed as “exclusion warranties”, and what this means, is the warranty covers all items on the vehicle excluding certain items, which may include things such as brakes, clutch, tyres, etc.

It is important to not confuse this type of warranty with the majority of dealership branded warranties, as they are quite often an “inclusions warranty” and these would cover only the parts listed in the policy and would usually be up to a certain limit in regards to the item covered, or they may have a maximum limit per claim and a limit on how much you can claim, sometimes as low as $1000 per claim, with a maximum limit of $3000 worth of claims.

These warranties are very different to a true extension of the Manufacturer’s Warranty and are often sold by people within dealerships without adequate training and used as a tool for them to profit more in the car, as they are quite cheap to purchase as the coverage is very limited.

They would also in most cases restrict you from servicing the vehicle at any other place, other than the dealership group you purchased the car from, giving them a better chance at having your ongoing servicing with them as a requirement to keep the warranty valid.

Not every true Extended Manufacturer’s Warranty is identical, as some would give you some additional benefits, such as towing, car hire, locksmith services, etc. and some would only allow your odometer reading to be at a maximum of 175,000kms, where others could you take you further than that. It is wise to have a professional guide you through this, to make sure you are getting the best value.

There are also a range of Used Car Warranties and you would find that most of these warranties in the market are “inclusions warranties”, meaning you would have certain items only that are covered noted in the policy, which would most likely not be the most comprehensive and these may restrict on how much you could claim.

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At CarLoans.com.au, we offer “inclusions warranties” on vehicles up to 8 years of age, as long as the odometer has not reached 150,000kms. We will offer true extension of the Manufacturer’s Warranty on vehicles up to 5 years of age, as long as the odometer reading has not reached 100,000kms and the current Manufacturer’s Warranty is still in place. The maximum limit on claims for these warranties is the market value of the vehicle at the time of claim and the limit per claim on the Extension of the Manufacturer’s Warranty is also the market value and up to $5000 per claim on a Used Car Warranty.

All our warranties can be paid outright with cash or credit card, paid by monthly installments, or can be added to your finance package and paid over the full term of your loan, subject to finance approval. The list of extra benefits in these warranties includes Towing, Loan Installments, Accommodation, Locksmith Services, Car Rental and Identity Theft Insurance. A key attribute is that our warranties can be purchased no matter how you are buying your next vehicle, whether it is dealer purchased, auction or even through a private seller.