Warranties on new cars

Manufacturer’s warranties

If you purchase a product or service and find it has a defect, the warranty sets out what you can claim and how you can claim it. 

All new cars come with a manufacturer’s warranty covering any faults and defects. Study the warranty carefully, as details such as the length of the warranty period vary. Identify and correct any faults at the first mechanical service, which should occur soon after delivery. 

Repairs

If repairs are required during the warranty period, we suggest you take the vehicle back to the authorised dealer. However, scheduled services can be done by qualified independent mechanics without affecting the warranty, provided: 

  • the work is done according to its conditions (manufacturer’s specifications), and 
  • genuine parts and lubricants are used. 

The Victorian Automobile Chamber of Commerce (VACC) and RACV can provide more information on mechanics.

Extended warranties

Dealers may also offer extended warranties at the point of sale or at the end of a manufacturer’s warranty. These warranties extend the coverage provided in the original manufacturer's warranty, usually at an additional cost. Note that extended warranties are optional. 

Extended warranties may restrict your choice of mechanic and parts used, or lock you into a service schedule with a specific dealer or group of dealerships.

Note: regardless of the type of warranty you have (or even after a manufacturer's warranty expires), you still have protection under the Australian Consumer Law if you have a problem with your car. For more information, view our Consumer guarantees section and our Warranties section.

Transferring the warranty

Generally, if you sell your car while it is still under the manufacturer's warranty, the remaining warranty period automatically passes onto the new owner (unless the warranty states otherwise). 

However, an extended warranty does not normally pass onto the new owner. In such cases, you may be able to cancel the extended warranty and get a refund for any coverage you had left. You may have to pay an early cancellation fee, but this should be limited to a reasonable amount. 

Problems with a warranty

If you have a problem with a dealer or manufacturer regarding a car under warranty (for example, if you believe they are not honouring the warranty), there are steps you can take - view our Resolve your problem or complaint page

Last updated: 26/09/2016

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