5 things you need to know before investing in an extended warranty for your used car purchase

ONE: Check your eligibility

Auto Auto can provide extended car warranty insurance for vehicles that are less than 8 years old provided the vehicle has travelled less than 140,000kms. There are also some other exclusions that may apply to certain makes and models. 

We can provide extended car warranty on vehicles even if the manufacturer warranty has expired subject to a 90-day no commencement period.

You can check your eligibility and get a free quote here.

TWO: Check the condition of the vehicle you are purchasing

This sounds obvious, but you would be the first person to purchase a lemon. An extended car warranty will not cover a pre-existing condition of your vehicle. You are required to have recent service history and are subject to a 90 day no commencement period if purchasing a vehicle that’s not covered under the manufacturer warranty. Just like health insurance, this is for the same reason in order to prevent claims of pre-existing faults. If you are purchasing privately, it is a good idea to get a full-service history. 

THREE: Check your statutory warranty

If you’re purchasing a Used Vehicle from a dealership – you will receive a 3-month statutory warranty. This warranty is a benefit of purchasing from a dealership. This 3-month period is important to note when purchasing an extended car warranty, as you will want your policy to commence the day after the 3-month warranty expires so you can have continual coverage without a gap or overlap. This will give you the longest period of protection for the best value.

For example, you purchased and picked up your 2015 Volkswagen Golf on 01/05/2022 from a dealership. You are covered by that dealership’s warranty until 01/08/2022. You will want your extended car warranty policy to therefore begin the day after on 02/08/2022.

FOUR: Is the vehicle covered under the manufacturer's warranty?

Depending on the make and year of the used vehicle you are purchasing, the manufacturer warranty may still be in effect. To avoid overlap, when purchasing an extended car warranty from our website, select the commencement date to be the day after the manufacturer warranty expires.

For example, you’ve purchased a 2019 Alfa Romeo Giulia. The Alfa Romeo manufacturer warranty expires on 30/06/2022. You are covered until that date, so select the commencement date of your extended car warranty policy to begin on 01/07/2022 (the day after the Alfa Romeo manufacturers warranty expires).

FIVE: What is the current value of the vehicle?

If you are about to purchase a used vehicle – this will be the market value of your car. 

You can get an estimate using online valuation tools such as RedBook and Glass’sGuide.

The benefit of purchasing a quality warranty product offered by Auto Auto – is that you are covered up to the market value of your vehicle (up to $120,000). If you believe repairs on that type of vehicle will be expensive, then you may see value in extended warranty insurance in the event of a claim.