What Is and Do I Need Extended Warranty
The team at Unicorn Auto often receives questions from our customers about warranty, unforeseen mechanical breakdowns and if they are covered. So, we are here to easily explain to all potential used car buyers if you should consider purchasing a used car extended warranty. Don’t worry, it is a quick and simple explanation, you will be back to your day in just a few moments!
Firstly, what is an extended warranty?
It is simple, an extended warranty is any customer purchased warranty that covers a vehicle for unforeseeable defects that occur after the expiry of the original vehicle manufacturer’s warranty.
Like the standard factory warranty for a new car purchase, an extended warranty covers the cost of repairing faults (usually electrical or mechanical) in a car during the period the extended warranty is valid.
If I am going to buy a used car from a dealership, does it automatically come with an extended warranty?
This is an important one! Used cars do not come with an extended warranty. However, used cars sold from a dealership come with a limited Statutory Warranty. These Statutory Warranties only provide a maximum of three months and 5,000km of covered warranty for cars under 10 years old and under 160,000km (Class A). For cars over 10 years old or that have over 160,000km, they only have one month and 1,000km warranty cover (Class B). These warranties also only cover a very small amount of potential issues! Again, this is important.
A statutory warranty does not cover defects in:
- tyres or tyre tubes, batteries, fitted airbags or radiator hoses
- lights (other than a warning light or a turn indicator light used as a hazard light)
- installed radio, tape recorder or CD player
- aerial, spark plug, wiper rubber, distributor point, oil or oil filter, heater hose, fuel or air filter
- paintwork or upholstery
- air conditioning (‘class B’ statutory warranties).
Statutory warranty also doesn’t cover:
- accidental damage due to your own misuse or negligence
- anything that you fitted to the vehicle after the time of sale.
For example, if you leave your car light on and your battery dies, this is not covered!
Ok, so Statutory Warranty has limited cover, do I need an extended warranty?
Well, let’s put it this way… When you were young, you didn’t really notice aches or pains. As you get older, and as do your “parts” you find yourself having more trips to doctors, optometrists, and physios, so you get health insurance to cover some of the cost of maintaining your natural “aging” problems. The same goes for cars. The more parts of a car are used, the more burnt out they get and naturally, those parts eventually need replacing or repairing. This is where an extended warranty comes into play. But my car comes with a roadworthy certificate I hear you say to yourself? Yes, it does, but a roadworthy certificate does not mean your vehicle’s parts are in brand new condition, they are used parts that are at point in time roadworthy, but one day may need replacing.
So, should I be considering purchasing an extended warranty for my used car?
Unless you have enough cash lying around to pay for any unforeseen defaults or breakdowns that could potentially cost you hundreds, you should definitely consider getting an extended warranty. It is not up to used car dealerships to cover the upkeep costs of your used car.
How do I get an extended warranty for my used car from Unicorn Auto?
When purchasing your vehicle from Unicorn Auto, make sure you let our team know that you want peace of mind and purchase an extended warranty. Our team will run you through the warranty options eligible for your car, and you can decide if the product is right for you.