What’s Covered in a New Car Warranty in Australia?

🚗 What’s Covered in a New Car Warranty in Australia?

A new car warranty gives you peace of mind when you drive your freshly purchased vehicle off the dealership lot. But what exactly does it cover in Australia? Are all warranties the same? What exclusions apply, and how long is your car protected?

In this extensive guide, we’ll break down everything Aussie car buyers need to know in 2025 about new car warranties—from what's included and excluded to terms, brands, and tips to avoid costly repairs.

🔧 What Is a New Car Warranty?

A new car warranty, also known as a manufacturer’s warranty, is a promise by the vehicle manufacturer that your new car will be free from defects in material or workmanship for a set period (or kilometres driven)—whichever comes first.

In short, if something breaks that shouldn't, and it’s not your fault, the carmaker pays to fix it.

📋 Key Elements Typically Covered

Here’s what most new car warranties in Australia generally cover:

✅ 1. Engine & Drivetrain Components

• Engine block and cylinder heads

• Transmission and gearbox (manual or automatic)

• Drive axles and differentials

• Transfer case (in 4WD and AWD vehicles)

✅ 2. Electrical Systems

• ECU (Electronic Control Unit)

• Alternator

• Starter motor

• Wiring harnesses

✅ 3. Air Conditioning & Climate Control

• Compressor unit

• Condenser

• Evaporator

• Cabin filter systems

✅ 4. Steering & Suspension

• Power steering pump

• Rack and pinion

• Shocks and struts (if fault-based)

✅ 5. Brake System (Not Pads)

• ABS modules

• Brake master cylinder

• Caliper pistons (if defective)

✅ 6. Fuel System

• Fuel pump

• Fuel injectors

• Fuel tank (for leaks or faulty construction)

✅ 7. Safety Systems

• Airbags (for defects)

• Seatbelt pre-tensioners

• Crash sensors

✅ 8. Infotainment System

• Touchscreen head unit

• OEM navigation

• Factory-installed speakers and controls

✅ 9. Paint & Body (Anti-Corrosion)

• Manufacturer’s paint and corrosion perforation warranty, often 5–10 years

• Usually covers rust-through caused by faulty metal or finishing

✅ 10. Roadside Assistance (Brand Dependent)

• Often included free during warranty period

• Coverage varies from basic towing to flat battery, lost keys, fuel top-up

🚫 What’s Not Covered? (Typical Exclusions)

Not every issue or cost is covered by a standard new car warranty. Common exclusions include:

❌ 1. Wear-and-Tear Items

• Brake pads and rotors

• Clutch friction material

• Wiper blades

• Tyres and wheel alignments

• Spark plugs and filters

❌ 2. Damage Caused by Owner Neglect

• Lack of scheduled servicing

• Use of non-approved fluids or fuels

• Modifications or aftermarket parts

❌ 3. Accidental Damage

• Crash damage, regardless of fault

• Cosmetic damage not related to manufacturer defects

❌ 4. Environmental Damage

• Hail

• Bird droppings

• Tree sap

• UV fading

❌ 5. Incorrect Use

• Off-roading in a 2WD not meant for it

• Towing beyond rated capacity

📅 How Long Do New Car Warranties Last in Australia?

As of 2025, warranty terms have improved significantly across the board:

⚠️ Note: Terms may vary if the car is used commercially (e.g., rideshare, delivery, rental).

🆚 Manufacturer vs Dealer vs Extended Warranty

✅ Manufacturer Warranty

• Backed directly by the automaker

• Typically the most trustworthy

• Covers factory defects and builds

✅ Dealer Warranty

• Sometimes offered on top of manufacturer warranty

• Often used as sales incentives

• May include roadside or servicing perks

✅ Extended Warranty

• Paid add-on

• Starts after the manufacturer warranty ends

• May be offered by third parties

• Read fine print—some only cover major components

🛠️ Servicing Requirements to Keep Warranty Valid

To maintain your warranty in Australia:

• Service on time or within distance limits

• Use an authorised service centre (or a licensed mechanic using genuine parts)

• Keep receipts and service logs

• Use the correct oil and parts (e.g., manufacturer-spec filters)

Failure to comply may void your warranty—especially for drivetrain claims.

🧾 What to Expect During a Warranty Claim

1. Identify the issue (warning light, noise, malfunction).

2. Book an appointment with a dealer or authorised service centre.

3. Have proof of purchase and logbook servicing ready.

4. The issue is assessed for warranty eligibility.

5. If approved, parts and labour are covered at no cost.

6. Some dealers provide a loan vehicle during repair.

🧠 Pro Tips: Avoid These Common Warranty Mistakes

• ❌ Don’t skip logbook services—even if the car runs fine

• ❌ Don’t fit aftermarket performance parts

• ❌ Don’t modify ECU tuning

• ❌ Don’t delay reporting a fault (can cause further damage)

🔍 How Warranty Applies to EVs & Hybrids in 2025

Modern EVs and hybrids have additional warranties:

Some brands (like Tesla and BYD) offer different durations based on battery size.

📑 What About Statutory Warranties for Used Cars?

In Australia, dealers must provide a statutory warranty for eligible used cars:

• Vehicle must be less than 10 years old

• Must have travelled under 160,000 km

• Warranty covers 3 months or 5,000 km, whichever comes first

• Covers major mechanical failures (not wear-and-tear)

Private sales have no warranty protections unless agreed in writing.

💡 FAQs – Quick Answers for Aussie Drivers

Q: Is a warranty transferable if I sell the car?
A: Yes, most manufacturer warranties transfer to the next owner automatically if within the coverage period.

Q: What’s the difference between warranty and insurance?
A: Warranty covers faults or failures in car components; insurance covers accidents, theft, and external damage.

Q: Are recalls covered under warranty?
A: Recalls are safety-related and are covered regardless of warranty status. The repair is mandatory and free.

Q: Can I service my car at a private mechanic and keep the warranty?
A: Yes—if the mechanic is licensed and uses parts/fluids as per manufacturer specs.

Q: What voids a car warranty?
A: Modifications, lack of servicing, tampering with mileage, or using the vehicle outside design parameters.

🏁 Final Thoughts – Drive Smart, Stay Protected

In 2025, Australian new car warranties are more competitive and transparent than ever before. Whether you're buying a Toyota, Kia, Tesla, or MG, understanding your warranty means:

• You save money on repairs

• You maintain resale value

• You drive with confidence

But the warranty is a two-way street. Stick to service schedules, read the terms, and report issues early.

If you're shopping for a new ride, don't just focus on the price—look at the warranty too. It could save you thousands over the next few years.

Would you like a follow-up blog comparing “Extended Warranties vs Manufacturer Warranties – Are They Worth It in Australia?” or something else related?