While a 12 month/20,000km ‘statutory’ warranty applies by regulation to all new cars sold in Australia, no manufacturer or importer would today dare offer such skimpy consumer protection. Three years is now the typical warranty period for mainstream passenger models, with a 100,000km distance limit. Since then some companies have chosen to offer optional extended warranties or simply not limit the distance travelled during the allotted warranty period.
Parts that wear out in normal use including brake pads, clutch components and belts are not covered unless the fault occurs well before the reasonable life-span of the component.
Tyres, batteries, bulbs and accessories supplied with the vehicle are normally subject to shorter warranty periods. These are sually only covered against manufacturing defects.
New cars must be serviced at specified intervals by someone qualified to carry out that service and who will use lubricants and replacement parts that meet manufacturers’ specifications. This does not compel owners to have their cars serviced by a franchised dealer but the work must be carried out by a workshop qualified for the task.
The franchised dealer versus independent workshop is a difficult area. By letter of the law you can use any 'qualified' workshop to service the car and still be covered. In practice, failing to stay within the franchise dealer system can cause problems if a failure occurs.
Should you choose to service your new car outside of the normal franchised dealer system and the car company attributes the damage to something done, or not done, by an independent workshop, the manufacturer may not honour its warranty. Consider this when making a decision especially with new cars from prestige brands...
If your new car develops a new noise, leak or other indication of a problem you must immediately contact the dealer and arrange an inspection. If you ignore a small problem that results in a major failure the warranty may not be honoured. This potentially exposes you to a large repair bill.
EXTENDING THE WARRANTY
The benefits of a longer warranty period depend on a range of factors. If you plan on keeping the car for at least five years and the standard warranty does not stretch that far it may be worthwhile.
Extended warranties are often provided by an insurance organisation, not the manufacturer. Although not technically an insurance product they are still subject to a Product Disclosure Statement which needs to be read carefully and understood before the offer is accepted.
Owner obligations may be different to those that apply under a standard warranty and may not be transferable should you sell the car.
ROADSIDE ASSISTANCE PACKAGES
Manufacturer Roadside Assistance program are often provided by motoring organisations like NRMA or the RACV. Many new car brands offer these services free of charge – for a period.
If you are asked to buy such a service consider all options. It may be cheaper or more beneficial for an owner to reject a manufacturer or dealer’s assistance package and arrange their own.
Some offer a range of benefits not related to the vehicle including travel and insurance assistance and even medical advice. Read the dealer-supplied brochure to see which package, if any, fits your needs.
A warranty that delivers five years’ cover with a kilometre restriction may be best for someone who will not travel anywhere near 30,000 kilometres annually. People who drive bigger distances or switch vehicles every two or three years may be better served by a Three Year/Unlimited Kilometre warranty.
Interestingly, it is a couple of brands that operate at the lower end of the market – Hyundai and Kia – that currently offer the longest warranty periods (five years with no kilometre limit). Mitsubishi joins the Korean brands in providing five years’ cover but with a 130,000 kilometre limit.
Below and covering those brands that sold more than 5000 passenger cars in Australia during 2011 is a summary the basic warranty terms and benefits. The summary is correct as of September 2012. For full details, contact a franchised dealer for your preferred brand.
Audi
Three Year/Unlimited Kilometres with one-year extension available. Roadside Assistance is included. Audi was a pioneer of body galvanising and offers a 12 Year warranty against body corrosion.
Read the latest news and reviews on your mobile, iPhone or PDA at carsales' mobile site…