Of course, it is ultimately up to the buyer to decide whether or not to take out a used car warranty, and this is where carsguide.news.com.au and OzFreeOnline.com will be able to assist you with hints on buying used cars. The risks are either you buy the wrong car warranty or if you do not need to make a claim then you will lose out. At the end of the day, buying the right car warranty definitely beats out not buying one at all.
Used cars sold by dealers have different warranties. These usually depend on the price of the vehicle.
Kinds of Warranty
There are two: Inclusion car warranties wherein all the items that are covered under the warranty are listed, and Exclusion car warranties wherein the items listed are those not covered in the warranty. At first glance, inclusion warranty might seem the ideal warranty to avail of. Be careful however and make sure you agree with the items that are not covered, compared to the Exclusion type.
What a Good Warranty Lists
Usually a car warranty states that the car must be serviced at intervals as specified by the manufacturer. For example, an intermediate service for every 20,000 kilometres. The car warranty may also specify that only manufacturer's parts can be fitted into the vehicle and that the engine or system in general cannot be modified or altered. Of course when you buy your vehicle through the pages of OzFreeOnline.com or carsguide.com.au, you can check whatever you need to find out through the NRMA or RACV while online.
It is also important to keep a record of all servicing work that has been done. This will be needed when making a claim. The use of a vehicle may also be restricted. For instance, exclusions might apply if the car is used for towing a trailer or for use on unmade roads. Be aware that any pre-existing or known faults will not be covered by a used car warranty.
What is covered?
A comprehensive used car warranty will cover failure of the following items: Engine, brakes, gearbox, suspension, steering, electrical system, ignition system, and cooling system. Car warranties do not normally cover wear and tear items such as tyres.
Limitations on claims
The total amount of any claims made will usually be limited to the value of the vehicle. Additionally, there may be claim limits applied to specific components or systems. It is important to check this out before buying a used car warranty.
Saving up on your used car purchase
Most used car dealers will offer you a used car warranty with the car you plan to buy, of course, commissions taken into account. If you want to spare yourself from having to shell out commissions though, you might want to buy a car warranty yourself and offer the dealer an appropriately reduced price for the car. The trick is to shop around so you get the best car warranty at the best cost.
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