Extended car warranty: should you or shouldn't you?

Thinking about buying a new or used car? Then it’s time to have a think about whether you want to purchase an extended vehicle warranty.

Cars are one of our most expensive assets, so it’s important we have a safeguard in place should something go wrong. Given this, a new or used extended vehicle warranty that covers thousands of parts is something you should really consider. They can save you a huge amount of money - and headaches - should something electrical or mechanical in your car fail once the standard car warranty has lapsed (Murphy’s Law dictates it happens a day out).

To get started, though, let’s take a look at what standard vehicle warranties cover.

Standard car warranties

A vehicle warranty is a guarantee that your vehicle will be repaired if certain problems occur during a fixed period of time.

Australia has varying standards when it comes to standard vehicle warranties for used cars, depending on the state you’re in (see table below). New car warranties can also differ slightly based on the make you buy.

Dealer Statutory Warranties for Used Vehicles

* Motor vehicles must have a purchase price of $4000 or more.

** Warranty doesn't apply to cars that are sold for $3,000 or less, cars that have travelled over 200,000 km, nor cars that were first registered more than 15 years ago.

Looking at the top five car brands according to VFACTS sales data in 2019 (as reported by Carsales), we can see there’s no difference between new car standard warranties. Toyota, Mazda, Hyundai and Ford all offer 5 year/unlimited kilometre warranties, Mitsubishi a five year/100,000 kilometre warranty.

Benefits of getting an extended warranty for your vehicle

There are a few reasons why we strongly suggest opting for an extended car warranty. Best of all, perhaps, is that because you know you’re covered if there are any issues, you have total peace of mind.

Plus, if and when you decide to sell, you’ll receive a pro-rata refund for your remaining cover. Alternatively, you can sell with a transferable warranty which can be great for resale value.

What’s the best extended car warranty out there?

There are quite a few options out there to choose from, each with different inclusions and conditions and with varied prices. So, while it’s pretty difficult to say what the best extended car warranty in Australia is for you and your specific needs, we recommend doing plenty of research before making your choice.

Funnily enough, we actually offer an exclusive 5-Star Platinum Extended Warranty which provides an additional three years/100,000 or 200,000 kilometre (your choice) warranty above and beyond your standard warranty. We can work with you whether you’re buying new or used and can develop a package to match your requirements.

Chat with us about vehicle extended warranty now

Keen for a chat to find out more about the extended warranty we offer? Give our friendly team here at Stratton Finance a call now on 1300 787 288. Alternatively, send us an online message and we’ll respond to you soon.

We’ll also help you get into your new car hassle-free. Our far-reaching network of lenders and car dealerships means we’ll not only find the best price on the make and model you’re after - we can get you the best car financing deal for you. To start, get your obligation-free quote here!

Buying a new car? Speak to none other than our new car buying partner carconnect who can source your car for the best price in the market.