THE FINE PRINT

Over and above the terms of your manufacturer’s new car warranty are the rights you have under the Australian Consumer Law. These are called consumer guarantees. According to the Australian Competition and Consumer Commission, if your car has a major problem — which includes it being unfit for purpose, unsafe or a problem that would have stopped you buying the car if you had known about it beforehand and can’t easily be fixed within a reasonable time — you are entitled to ask the dealer for a replacement car or a refund. This applies even if your car is still covered by the maker’s warranty.

Under the Australian Consumer Law, the dealer cannot refuse to help you by sending you to the manufacturer.

A dealer or manufacturer is not allowed to claim that your warranty is valid only if you have your new car serviced at the dealer.

Optional extended warranties referred to here are factory branded and backed, so you can buy them with confidence. Be wary, though, about extended warranties offered by dealers on behalf of third parties such as insurance companies. Many car buyers have had problems claiming under these warranties.

The ACCC also advises that consumer guarantees can apply after the manufacturer’s new car warranty has expired. Dealers should not mislead you into paying for rights that you already have under the consumer guarantees when they are trying to sell you an extended warranty. You should ask the dealer what an extended warranty gives you over and above your consumer guarantees.