When you encounter a large car repair bill unexpectedly which is a quite bewildering experience, there is a ray of hope for you – it’s extended warranty. With an extended car warranty, you are assured that you have a help at hand to avoid such an unforeseen repair and to protect one of your most precious assets – your car. Getting an extended warranty before the regular manufacturer’s warranty is over gives you a great peace of mind because you are covered for any electrical or mechanical breakdown of the thousands of your car parts, for which you might have to pay thousands out of your own pocket if you don’t have the cover. Please refer to AMMI comprehensive car insurance at Warranty and Insurance, and you will realize the difference extended warranty can make.
Here is some useful information about manufacturer and statutory warranties. You will also know here more about extended warranty, how it works and how it can benefit you, as a car owner and also as a private seller.
What is a Standard Car Warranty?
A standard car warranty is a way to guarantee you that your car will be repaired in case of certain problems occurring within a stipulated period of time.
According to the 1974 Trade Practices Act, buyers are protected when they buy any goods in Australia; these goods include automobiles too and the act entitles the buyers to some specific basic rights, which are called statutory rights.
In addition to this, all new vehicles are available with a wide-ranging manufacturer’s warranty; however, the duration of the warranty varies in terms of age of the vehicle and kilometres driven, up to 5 years or 150,000 km in some cases.
You can get a statutory warranty even if you buy a used car from a licensed automobile dealer. The conditions applied for the requirement of a statutory warranty differ from state to state, and are based on the kilometres driven and the age of the car. In some states, these conditions are also influenced by the purchase price of the car.
What is an Extended Warranty?
With an extended warranty you get a chance to increase the period of time of the original manufacturer’s warranty.
Extended warranty products are available in a wide range at various prices; however, they also come with certain conditions and inclusions. You should see to it that your extended warranty includes a wide range of coverage for various components of your vehicle for electrical and mechanical breakdown. It may also include some other services like roadside assistance.
How does an Extended Warranty Work?
A high quality extended warranty is a kind of insurance for you against the expense of potential repairs and labour.
You can buy an extended warranty at the time of purchase while arranging for the car’s finance as well as insurance cover, or any time during the validity of your manufacturer’s warranty. Don’t worry of the overlapping of the two warranties, because the extended warranty starts only when the manufacturer’s warranty is over.
With the increasing complexity in today’s vehicles with high-performance engineering and computer-associated driving aids, repairs too are becoming increasingly complex. To add to it, labour hours build up quickly; moreover, there are parts. So, the repair cost may quickly pile up into thousands. Check, for example, the Mitsubishi new extended car warranty from Warranty and Insurance.
If you are ready with a high quality extended warranty product, your thousands of bucks can be saved.
Benefits of an Extended Warranty
- Protection of your valuable investment, your car! Your vehicle is covered for an extensive range of electrical and mechanical failures with only a little or even no excess to be paid.
- Win-win situation if you plan to sell the car – great resale value – sell privately with the warranty easily transferred or get a pro-rata refund of your remaining cover.
- Optional roadside assistance available for day-to-day assurance