Factory warranty expired? Here’s what smart used car buyers do next

Most people who buy a used car do their homework. They check the PPSR, get a pre-purchase inspection, negotiate hard on price. What they often don’t think about until something goes wrong is what happens when the car breaks down and there’s no warranty left to call on.

A failed gearbox, a faulty fuel injector, a dying air conditioning compressor – these are the kinds of repairs that run into thousands of dollars and arrive without warning. And if your vehicle is out of its manufacturer’s warranty, that bill lands squarely on you.

Auto Auto Australia was built to solve exactly that problem. It offers an online mechanical and electrical breakdown warranty for used vehicles – covering the components that would have been covered under your car’s original manufacturer warranty, for as long as three years or up to 200,000km*. No dealership visit required. No pressure from a salesperson. Just straightforward cover you can arrange at your own pace, from your phone or laptop.

The argument for buying used has never been stronger. New cars depreciate sharply the moment they leave the lot – typically losing somewhere between 15 and 25 per cent of their value in the first year alone. Buying a vehicle that’s three to five years old lets someone else absorb that depreciation hit while you get most of the same car for considerably less money.

A used Mercedes-Benz, BMW or Ford Ranger bought in the right condition can represent genuine value. The catch, historically, has been that once the factory warranty expires, you’re on your own for repair costs. Auto Auto Australia changes that equation.

Auto Auto Australia’s product covers the mechanical and electrical components that would have been protected under your vehicle’s original manufacturer warranty*. That includes the engine, transmission, differential, electrical systems, steering, suspension, brakes, air conditioning and more.

A few specifics worth noting:

The warranty also includes a Customer Care Package for covered breakdowns, which can help with towing costs, emergency accommodation if you’re more than 400km from home, and car hire if repairs take more than 48 hours.

Most extended warranty products are sold at the point of sale – through a dealership, broker or insurer – where the buying environment isn’t always conducive to careful decision-making. Auto Auto Australia is different. It’s the only place in Australia where you can purchase this kind of breakdown warranty entirely online, on your terms and in your own time.

That matters. There’s no sales pressure, no bundling into a finance package, and no need to make a decision on the spot. You read the product, understand what’s covered, and buy when you’re ready. The product is underwritten by Australian Warranty Network (AWN Insurance), which holds an Australian Financial Services Licence and has been in the business of warranty administration for decades.

One of the more exciting features of the Auto Auto Australia product is how you can pay for it. Rather than requiring a large upfront premium, the warranty is available via monthly subscription payments – which you can cancel at any time.

That payment model reflects a genuine confidence in the product. If the cover wasn’t delivering value, customers would simply cancel. The fact that they don’t is telling.

For small business owners, there’s also a potential tax angle worth exploring with your accountant. Vehicles used for business purposes may allow you to claim warranty-related expenses – adding another layer of value to a product that’s already competitively priced against the cost of a single major repair.

The Auto Auto Australia warranty is designed for used vehicles where the manufacturer’s warranty has expired or is coming to an end – typically vehicles from around 2018 to 2021 model years. It suits buyers who want the financial security of warranty cover without paying new-car prices.

That might be someone buying a used prestige vehicle and wanting protection against the higher repair costs those cars can carry. It might be a small business owner who relies on their vehicle for work and can’t afford unexpected downtime. Or it might simply be a buyer who wants to know that if something goes wrong, they won’t be left holding a repair bill they weren’t expecting.

Excluded from coverage are certain vehicle types and use cases – including vehicles used for hire, courier or delivery services, racing or competitive events, and high-end exotic vehicles. The full eligibility criteria are set out on the Auto Auto Australia website.

The process is straightforward. Click here to check your vehicle’s eligibility, select your cover term, and complete the purchase online. Cover commences after any existing manufacturer or statutory warranty has expired, so there’s no gap and no overlap.

If you have questions about the product before buying, the team is contactable through the website. And if you decide the product isn’t right for you within the first 30 days, there’s a cooling-off period that allows you to cancel and receive a refund, provided no claim has been made.

For more information, visit autoauto.com.au.

*3-year Mechanical and Electrical Breakdown Warranty provides protection for your vehicle until it has travelled 200,000kms. Subject to terms, conditions and exclusions.?

This extended warranty product is offered as an Authorised Representative of AWN Insurance, ABN 78 075 483 206, holder of AFS Licence No. 246469. This website offers general advice only on extended warranty products, and it does not take into account your personal financial circumstances. The products on this website are only available to motor vehicles within the states and territories of Australia. Terms and conditions apply. Please read the Product Disclosure Statement?

AUTOAUTO Australia offers these extended warranty products as an Authorised Representative of AWN Insurance, ABN 78 075 483 206, holder of AFS Licence No. 246469. AUTOAUTO Australia offers general advice only on extended warranty products, and does not take into account your personal financial circumstances. All products referred on this website are only available to Motor Vehicles within the States and Territories of Australia.