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What is an After Market Mechanical Warranty?

An aftermarket mechanical warranty, sometimes known as car mechanical breakdown policies, protects you in the event of issues with your car. If something on your car covered by your warranty breaks down, the warranty will cover the cost -so you’re not left thousands of dollars out of pocket!

What Car Mechanical Warranties Do


Aftermarket Warranties Are Particularly Popular For Used Vehicles Outside Their New Car Manufacturer Warranty Period. This Includes:

  • Dealer Used Car Sales: The Used Car Dealer Statutory Warranty Varies By State But Typically Protects You From Major Breakdowns Only For 6 Months After Purchase.

  • Private Sales Or Auction Sales, Where Typically It Is 100% ‘buyer Beware’ And There Is No Warranty Protection At All.


Consider how much you would be out of pocket if your cooling system, drivetrain, gearbox or brakes start to fail. Mechanical breakdowns usually aren’t covered by most comprehensive insurance policies. Even if these are covered by your comprehensive insurance company you may have to pay an excess with your insurance carrier to cover the repair. If not, you'd have to pay for the remedy outright.

With car mechanical warranties, you are covered if the damage done isn’t your fault. That means improper manufacture or unexpected malfunctions can be compensated for by the warranty provider. It is never fun to have to handle car problems at the best of times. Having to pay out for them is a different matter entirely!

Is It Worth Taking Out an After Market Mechanical Warranty?


If you are buying a new car outright, it will undoubtedly be worth you considering how much cover you need once you take to the road. We believe the more cover you take out, the better. After all, you never know what’s just around the corner.

Many used vehicles will not be covered by manufacturer warranty, meaning you will need to find the best possible fit for your new ride. Even if you’re buying new, new car warranties can be very limited in their coverage. Bear in mind that new car and dealer statutory warranties may not cover you for the following problems:

  • General wear and tear

  • Interior blockage problems

  • Oil leakage issues

  • Commercial vehicle breakdowns


Therefore, you're going to need to be clued up on what to expect. Some of these issues do cover grey areas; therefore we strongly suggest you discuss your warranty and/or policy needs with your carrier before you put any money down.

Which Parts Can Be Covered?


Despite the above exclusions, the following parts and components will generally be covered by after market mechanical warranties:

  • Engines

  • Cooling systems

  • Brakes

  • Transmission

  • Clutches

  • Steering systems

  • Gearboxes

  • A/C systems

  • Ignition systems

  • Fuel components


Contact Us


At Auto Car Loans we can provide you third party warranties for cars purchased from a dealership and also provide them for private sale purchases. Warranties can also be included in your finance repayments, so for a minimal cost per month you can have peace of mind. It’s always best to discuss your individual situation with a finance broker so we can assess your needs. If you are a new driver or are just getting to grips with car warranties, Auto Car Loans can help. Call our friendly team for advice on 1300 301 051 or apply online with us today.

DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.