What is covered under a used car warranty?

Buying a used car can be a nerve-racking experience. Luckily, used car warranties can make it a little less daunting.


New cars aren't cheap and can be something of a luxury item for those who can afford them. Perhaps one of the main things that attracts buyers to new cars is that they offer peace of mind under their factory warranties. 

A factory warranty covers a wide range of issues that may arise with your car, from switches not working correctly to total engine failure. 

New car warranties are getting longer and longer as manufacturers stand behind their products to guarantee they're the right purchase for you.

But, there is a way to get yourself into a used car with the added peace of mind that you have a warranty to cover you, while capitalising on the depreciation that new cars face after a few years. 

There are plenty of questions surrounding how used car warranties work, what you are covered for, and how to make a warranty claim. Luckily, we have all of the answers for you.

When is a used car covered under a factory warranty?

If you buy a used car that is less than five years old, there's a chance that it may actually still be covered under a factory warranty. Some brands even offer warranties that last up to 10 years or 200,000km. However, it's not as cut and dry as it may seem.

For starters, it always pays to check the service book to see what warranty your newish used car is covered under. While brands like Mitsubishi, Toyota, Nissan, and others offer a long warranty period now, there is a chance they only switched to that cover in the past three years.

For example, if you buy a 2018 car and the brand announces it's extending its warranty from five years to seven years in 2019, it does not mean that you are covered under that warranty; it would only be 2019-onwards models that are covered.

However, suppose you are still under the factory warranty period or the previous owner has paid for an extended warranty. In that case, it can absolutely be transferred to the new owner as it applies to the car and not the owner. 

Most warranties have a clause requiring an up-to-date service record to authorise repairs under warranty. This does not mean that you have to have the car serviced at a brand's dealership, but you will need to have a qualified workshop perform a logbook-specified service with genuine parts. 

It's certainly something to look at when buying a used car that is still under warranty. Comb the logbook to ensure that every single service has been done and is up to date; otherwise, your warranty is void. 

Factory warranties do not cover consumables like car batteries, brake pads, tyres and such if they haven't dramatically failed and are worn out as per usage. However, something such as a battery failing, tyres delaminating or brake pads cracking prematurely could actually be replaced under the part manufacturer warranty. 

Also, an automotive company cannot refuse your warranty if an aftermarket modification you have installed has not caused the warranty claim.

The Australian Automotive Aftermarket Association (AAAA) states "A car fitted with a fit-for-purpose part will not void a warranty. Should a problem result in the vehicle due to the modification, the problem will be covered under the part manufacturer or fitter's warranty".

So, if an unrelated part to what you have installed fails, e.g. a gearbox or brake calliper, the manufacturer cannot refuse your warranty. Say you run into wiring problems, and you have installed an aftermarket stereo, the manufacturer may be able to prove that it is due to your aftermarket stereo. In this event, you would need to take up a warranty claim with the installer or part company. 

Should you encounter any issues with unreasonable warranty rejections, the AAAA has a legal assistance hotline that offers advice and help to those who have questions.

Is there a warranty on used cars?

You may be entitled to some warranty on your used car if you purchase it from a dealership. Tasmania and South Australia have a few slightly different rules, but all states follow the same parameters.

The NRMA says, "Buying a used car from a dealership gives you guaranteed title and a statutory warranty on cars under 10 years old or 160,000km. This warranty is valid for three months or 5000km from the date of purchase and covers items relating to safety, reliability, and roadworthiness".

That means if you buy a car under 10 years old and not covered under the factory warranty, you'll still have some sort of coverage.

For Tasmanian residents, they are covered if the car is under seven years old and has less than 120,000km on the clock. It only applies for three months after purchase or 3000km, whichever is first. 

It can be a bit confusing for South Australians, but the simplified version is that if the car is under 15 years old and has driven less than 200,000km, it is covered under the following guidelines. If the purchase price is under $3000, there is no warranty. If the car is $3001 to $6000, you get a two-month or 3000km statutory warranty. Over $6000, you receive three months or 5000km after the sale to claim your statutory warranty. 

This only extends to used cars purchased from a dealership; private sales have absolutely no warranty, and it is exclusively buyer beware. 

What is covered under a statutory warranty?

The statutory warranty covers most mechanical issues you may face with the car, such as if the car begins to leak oil, stops running, or won't go into gear. However, it does not cover consumables. Tyres, batteries, brake pads, oil changes, and other common service items would not be covered under this temporary warranty. 

It always pays to check out cars that are still within a factory warranty period. You're usually safe to buy something three years or newer and assume that it is under factory warranty. Just check that log book and ensure that everything is up to date.

When in doubt, go for a pre-purchase inspection with a trusted mechanic and they will be able to tell you what warranty you are entitled to.

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Zane Dobie comes from a background of motorcycle journalism, working for notable titles such as Australian Motorcycle News Magazine, Just Bikes and BikeReview. Despite his fresh age, Zane brings a lifetime of racing and hands-on experience. His passion now resides on four wheels as an avid car collector, restorer, drift car pilot and weekend go-kart racer.

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