How Do Car Warranties Work?

  • A new car manufacturer's warranty usually lasts from five to seven years
  • A lot of used cars offered by dealers include three-month/5000km of warranty.
  • Warranties do not protect against wear and wear as well as damage caused to the vehicle
  • You don't need to get your car repaired by a dealership to keep your manufacturer's warranty in force.

Understanding the coverage of the car warranty and the way an extended warranty operates is important when purchasing a vehicle.


What is a warranty for cars?


The term "warranty" refers to a commitment by the manufacturer of the vehicle to correct any faults that might be discovered during the warranty that includes both parts and labor.

One of the major benefits of purchasing a new automobile is that it comes with a warranty. It generally provides coverage for a lengthy amount of time and extended length. It is a promise that you will not have to pay for any defects during the warranty period.



A warranty typically covers a car and all accessories installed at the factory or the dealer. Still, it's worth studying the warranty documents carefully to make sure you understand the specifics of what's covered.


What's covered under an auto warranty?


The warranty of your car, regardless of whether it's manufacturer's or dealer extended or used-car guarantee, generally covers the car as well as its accessories concerning reliability, safety, and roadworthiness. However, it does not provide coverage for cosmetic damage or wear and tear that is normal. Extended warranties for cars are different. Be sure to know what's covered, along with any fees and terms.


A car warranty typically will cover:

  • Remediation of the defect within a specified time
  • The manufacturer's warranty for new cars typically lasts between five and seven years/100,000km
  • Used cars that dealers sell typically come with a 3-month and 5000km of warranty
  • Independent car servicing companies like Motorserve insofar as authentic parts are employed

The warranty on a car doesn't include:

  • Damage resulting from an accident, abuse of the vehicle, or adjustments to the automobile
  • Normal wear items like brake pads and tires
  • Routine maintenance and services
  • Routine maintenance and services

Is the battery in my car protected under warranty?


The battery of your vehicle may be an item that might are not covered. For confirmation, read the warranty documentation. The manufacturer's warranty usually covers the battery. However, it is not covered by a used-car warranty or dealer warranty.

However, replacement batteries come with a manufacturer's warranty for batteries made by the NRMA, for instance, are covered by a three-year warranty beginning from the initial purchase date. They also include free installation and delivery for NRMA Members.


Do I need to service my car at a dealer to maintain my warranty?


To preserve the manufacturer's warranty, it is unnecessary to maintain your vehicle at the dealership that you purchased it from (or any of the company's service departments). However, the facility you choose to take it to must utilize authentic and Original Equipment Manufacturer (OEM) components, or else you'll be void of the manufacturer's warranty.

This service, also known as logbook service, includes the replacement of vital lubricants and fluids per the manufacturer's specifications.


Certain extended warranties for dealers require maintenance to be completed by the dealer. Therefore, ensure that you go through the warranty documentation before signing up, as the cost over time could exceed the benefits.

However, you are required to maintain your vehicle per the manufacturer's service interval to satisfy the terms of the warranty.


Car service at an independent auto mechanic, like Motorserve, is more affordable than the dealer service.


What are the different kinds of warranties on cars?


Manufacturer's guarantee for new cars


Every new car comes with an assurance from the manufacturer. For the vast majority of vehicles, you'll be covered by a five to seven years 100,000km or 100,000km warranty, whichever comes first. Certain brands offer an unlimited-kilometer warranty which can be transferred to the next owner if you decide to sell your car.

If a defect develops during the warranty period, the dealer has to resolve the issue at no cost to you, ensuring that your vehicle is in good shape with its age. The time needed to repair the defect is added to your warranty time.


A warranty for new cars that is statutory


The warranty for new cars is statutory and covers the car for 12 months, or up to 20,000 miles, whichever is first. The warranty will, in the majority of instances, cover any defective item on your car. It is legally required for vehicles below the threshold of luxury car tax that is $68,740 (or $77,565 for fuel-efficient vehicles that use 7.0L/100km or less in the government-owned combined cycle).


The statutory warranty for used cars


A used car's legally binding warranty applies to all passenger cars sold by dealers that have not more than 160,000km are not more than 10 years old, and don't exceed the tax on luxury cars threshold. The warranty lasts 3 months or 5 years after the day of the purchase. This warranty covers most things on a vehicle related to safety, reliability, and roadworthiness.


What are the extended warranties on an automobile?


The NRMA recommends that you carefully study the extended warranty documentation to understand what it covers and the terms that apply. They're diverse.


An extended warranty from the manufacturer is often offered as a benefit. It usually has the same coverage and terms as the standard manufacturer's warranty. This kind extends the warranty and is generally beneficial to have.


An extended warranty from a dealer is, however, could come at an expense, but it will only cover certain items up to a specific amount. It could need you to maintain your vehicle only at the dealer, which might not be the most economical choice.

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