Types of warranties

Warranties against defects

Warranties against defects are also known as ‘manufacturer’s warranties’.

Businesses may offer a warranty against defects. A warranty against defects is a promise to fix faults or problems and usually comes with a time limit.  The business must give consumers the warranty in writing.

It needs to:

  • state the terms clearly
  • provide the business name, address, phone number and email
  • list any time limits
  • explain details and processes
  • tell consumers the warranty won’t affect their consumer guarantees.

All new cars come with a manufacturer’s warranty covering any faults and defects. Consumers should read the warranty carefully as details may vary.

Before the warranty expires, it’s a good idea to have a mechanic check on the vehicle. This allows problems to be fixed within the warranty period.

Business guarantees

This is when a business guarantees that any promise they make on top of the consumer guarantees are kept. These might be promises about the quality, condition, performance or characteristics of goods.

These are called 'express warranties' and can be spoken or written claims including:

  • whether the good or service is of high quality
  • what state they are in, and how long this will last
  • whether they are in good condition, and how long they will stay like that
  • whether they do their job properly, and for how long
  • what specific characteristics they have, and how long these will last.

A business may also provide a warranty against defects.  This guarantee does not apply to private and auction sales.

Extended warranties

A business might choose to offer an extended warranty. This is an optional warranty that extends the time of an express or manufacturer’s warranty.  A business must be fair and honest about this type of warranty.

They are not allowed to:

  • put pressure on consumers to buy warranties
  • use unfair methods to sell warranties
  • mislead consumers about their rights.

Motor vehicle dealers may offer extended warranties. These warranties extend the coverage of the manufacturer's warranty, but may cost extra. Extended warranties may restrict consumers’ choices of mechanic and parts used. It may also lock the vehicle into a service schedule with a specific dealer or group of dealerships.

Regardless of the type of warranty, consumers still have protection under the Australian Consumer Law.

Statutory warranty on cars

For information on car warranties check out our Statutory warranties on cars page.

Related information

Updated: 25 Jul 2022

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