We look at what a new car warranty covers and what every car buyer should know to save them money.
Driving to work or getting the kids around, we want to make sure we get from A to B without any hassles or breakdowns. A broken car will end up at the mechanics. You’re then off the road and it can cost quite a bit of money. A lot of the time, we don’t even know if we are being charged a fair price. That’s why many people prefer to buy something new that comes with a new car warranty. We look at what a new car warranty covers and what every car buyer should know to save them money.
What is a new car warranty
When you buy a new car, the maker of the car gives you a warranty that will cover you for problems that the car has when you are driving it. This means that if the car breaks down or has any issues, it will be fixed without you having to pay for it. No hidden surprises.
What should I know
Not all new car warranties are equal. Every car brand gives you a different new car warranty. There are 2 things anyone looking for a new car should know.
- How long is the warranty
- How many kilometers does it cover me for
The length of the warranty is different for each brand. Many offer 3 years but some take it up a notch with a 5 or 7 year warranty. The same goes for the kilometers it covers you for.
The warranty starts from the day your new car is delivered to you. That means if your Toyota breaks down after 4 years, you will be end up paying for the repairs.
Warranty in a new family car
New family cars come with different warranties. Toyota for example is the most popular brand in the Australia but offers a 3 year warranty on their new cars. Kia on the other hand offers a 7 year warranty.
Here is what the top 10 brands offer. They are sorted by the best warranty.
- Kia – 7 years/unlimited kilometers
- Hyundai – 5 years/unlimited kilometers
- Mitsubishi – 5 years or 100,000 kilometers
- Mazda – 5 years/unlimited kilometers
- Subaru – 3 years/unlimited kilometers
- Toyota – 3 years or 100,000 kilometers
- Holden – 5 years or 100,000 kilometers
- Ford – 5 years or 100,000 kilometers
- Volkswagen – 3 years or 100,000 kilometers
- Nissan – 3 years or 100,000 kilometers
Honda is another brand that now offers a 5 year/unlimited kilometers warranty on their new family cars too. They offer a practical family car that’s ideal for parents with up to 2 kids. For more on that, check out first family cars under $25k.
Does it save me money?
A good warranty can save you thousands. We have heard some horror stories where families have paid thousands to get repairs done on cars that were outside of the warranty period.
A problem with the engine or the automatic transmission is something not many people get. If it does happen to you, having the car repaired under warranty will save you thousands.
Buying a near new car – transferring warranty
If you buy a relatively new car, you are more than likely covered for the rest of the warranty on that new car. The best thing to do is to check the date the car was delivered. You can find this in the logbook of the car you are about to buy. Once you have this, contact the brand of the car to see if they will transfer that warranty over to your name.
A simple call can save you thousands.
Can I extend a new car warranty?
With some car brands you can get your new car’s warranty extended. They sell it to you as an add on when you buy the car from a dealership. This is an option and you should not be forced into buying it when you buy a new car.
If you think extended new car warranty is right for you, it’s best to read through the paperwork. Some extended warranties can lock you in to get your car serviced through a group of dealers otherwise the warranty does not cover you.
Free extended warranty
Every now and then you see ads from brands offering free extended warranties on their new cars if they are bought at that time. These are promotions that are generally run to get more sales through the dealerships.
If you take advantage of these free extended warranty offers, be sure to have the warranty terms in writing. This could be the difference between the dealers repairing your broken car for free or sending you hefty bill.
Best new car warranty for car buyers
Whether you are looking at buying a new or used car, it’s worth reading up on car warranties. Every car on carloop will show you the warranty that it comes with. We recommend looking at getting the longest possible warranty to save you any troubles later. Kia, Hyundai, Mitsubishi & Honda offer longer new car warranties on their family cars than some of the other brands.
Save Money when Buying
Another way to save money is when you are about to buy. You sort of have to take matters into your own hands and walk into dealers without knowing the price you should pay. With the right information, anytime is good time to be able to save money.
carloop’s sold price reports, you can do just that by seeing what other owners have paid for their new car. These reports help you save time and money.