subject: Buyer's Guide to Melbourne Used Car Warranties [print this page] Common questions about warranties answered
Cars are a fairly significant and important purchasing decision ... even when you get an amazing bargain on a used car in Melbourne! Having a warranty on your used car is a vital part of the buying decision for many, and there is often confusion about the types of warranties which can be applicable. Today we answer some of the most common queries about car's city warranties.
What are the main warranties available?
There are three main types of warranties on cars that you purchase:
New car statutory warranties: These cover any defects or problems with the car within the first 12 months or 20,000km, which ever occurs first.
New car manufacturer's warranty: These usually exceed the statutory warranty, and often come in multiples of 12 months/20,000km,
Melbourne used car statutory warranties: These are only applicable to some types of used car that you purchase in Melbourne - see below. They are valid from 3 months or 5000km from the purchase date
Used car dealer warranty: Some Melbourne used car dealers will offer a longer-than-statutory warranty, which would be fulfilled through the dealer, not the car manufacturer.
When is a Melbourne used car statutory warranty applicable?
These are applicable to used cars that fulfil these conditions:
Sold by a licensed city car dealer
Less than 160,000km travelled
Less than 10 years old
With a purchase price not exceeding the current luxury car tax threshold
If you purchase a car privately, there is no statutory warranty applicable ... which is why you should take far greater precautions when buying a vehicle privately than through a dealer.
Extended warranties
Just as you can with televisions, computers and whitegoods, you can usually purchase extended warranties for your used cars Melbourne. These may be offered through the dealer themselves, or by third party services who offer warranties only to certain types of vehicles. You'll need to be aware of certain issues with extended warranties:
Prices will vary between different providers - there is no set price per month or per kilometre.
Make sure you confirm any statements about the extended warranty in writing - you should get a Product Disclosure Statement or similar document.
Some finance companies actually require you to purchase an extended warranty as a pre-condition of financing your car. It is usually in the interests of Melbourne used car buyers to look for finance without preconditions like this attached.
There may be exclusions and restrictions regarding what will be fixed
There may be claim limits or excess fees
Specialist warranties
Some Melbourne used car dealers and extended warranty providers offer special coverage for certain parts of your car. For example, you may be able to purchase paint 'insurance' or a paint warranty, or a battery warranty. For most consumers, these are unnecessary - they provide peace of mind, but rarely a financial payback. Naturally though, the decision is solely yours.
If you need further information on Melbourne used car warranties, contact the Office of Consumer Affairs; car city purchasers in other states can get in touch either with the Department of Fair Trading, Department of Justice or their own Office of Consumer/Business Affairs.
