A used car can feel like a bargain, possibly saving you thousands versus the cost of purchasing brand new. Happy days. Until something starts rattling under the bonnet three hours into a road trip, or blinking on the dashboard, and you’re left wondering, “Is this covered under warranty?”.
Whether you’ve found yourself in an unwelcome situation like this, or you’re looking at buying a second hand car in the near future, this practical guide can help you understand what a used car warranty typically covers – and where that cover ends. We’ll also dig into how auto warranties for used cars vary across Australia, things that may void an auto used car warranty, and how car insurance fits into the picture – so you can get back on the road without that strange clunking noise.
What is a car warranty?
A warranty is a voluntary promise from a car manufacturer or dealer about what they will do if something goes wrong with your newly purchased car, for a specific period of time.1 New car manufacturer warranties often cover extensive repairs for a number of years, while warranties on used cars are typically more limited in scope and duration.1
For example, say you purchase a used car that is less than 10 years old and with fewer than 160,000 kilometres from a licensed motor dealer in Victoria. Within a month, the engine has a major failure. Legally, the dealer is obliged to remedy the situation at no additional cost to you under the statutory warranty.2
Do all used cars come with a warranty?
Most second hand cars purchased from a licensed dealer will be covered by a statutory warranty.3 As of June 30, 2025 there were more than 10,000 licensed car dealers in Australia4 – but which used cars are eligible for a statutory warranty will depend on where you live. For more information on your state or territory, see the table further on in this article.
“A statutory warranty is a contract from either a dealer or warranty provider to repair or replace certain components if they fail within a set period, depending on the vehicle’s age, kilometres and price,” says Karla Leach, Executive Manager of Marketing and Communications at the Victorian Automotive Chamber of Commerce (VACC).
Aside from a used car warranty, or statutory warranty, there are two other warranties for second hand cars in Australia:
- Manufacturer’s warranty: Also known as a factory warranty, all new cars usually come with this, and it’s typically included in the car’s sale price. In some cases, a manufacturer’s warranty can be transferred to a new owner if the car is sold.3
- Extended warranty: This is an optional warranty that may be offered by a dealer at an additional cost. It might extend the cover provided by the original manufacturer’s warranty if it’s still valid when you buy the car, or you may be able to buy a dealer or third-party extended warranty.1,3
Throughout the rest of this guide, we’ll mainly be focusing on statutory warranties.
Can a used car be covered under a factory warranty?
If you buy a near-new second hand car, it may still be under factory warranty – especially if the manufacturer offered a longer term of coverage, such as seven or 10 years. The car’s service book will include information about the manufacturer’s warranty that originally came with the car.5
Most warranties require a full service history, which means that missing even a single service could potentially render it void. For this reason, it’s a good idea to review the service logbook and records to check that every service has been completed.5
What about if you buy a used car from a private seller?
While private sellers are obliged to provide guarantees that the car isn’t stolen and doesn’t have any outstanding finance owing, state and territory statutory warranty requirements and most Australian Consumer Law obligations don’t apply to private sellers.4
However, while most state and territory consumer protection agencies only have limited powers to pursue private sellers, there are one or two exceptions.4
For example, South Australia, Queensland, Victoria, New South Wales, Western Australia and the Australian Capital Territory all have laws and penalties that apply to private sellers – and dealers – who lower a car’s mileage or odometer reading, known as odometer tampering.4
Used car marketplace platforms such as carsales often recommend getting a vehicle history report to check there’s no outstanding finance owing on the car, it hasn’t been written off or stolen, and that the mileage is accurate.6
What is covered under a used car warranty?
Generally, statutory car warranties for used cars cover the worst things that were unforeseen – by both yourself and the used car dealer, explains Leach.
“Statutory warranties usually cover major mechanical components such as the engine, transmission and driveline, but often exclude wear-and-tear items like brakes, clutches, tyres and batteries,” she says
“Coverage varies significantly, which is why the VACC urges buyers to confirm exactly what is included.”
Some examples of what may not be covered under statutory warranty – using Victoria as an example – include:2
- Damage incurred after taking delivery of the car
- Damage caused by misuse or negligence after delivery
- Consumables such as tyres, batteries and light globes
- Audio systems
- Telephone systems and kits
- Satellite navigation
- Power outlets including cigarette lighters
- Non-standard alarms.2
If you’re looking to buy a car at a public auction, or a second hand vehicle that isn’t a car, it’s a good idea to check the applicable eligibility for statutory warranties in your state or territory. In Victoria, for example, motorcycles and commercial vehicles, as well as cars sold at public auction, are exempt from a statutory warranty.7 In Queensland, caravans do not have a statutory warranty, but motorhomes generally do.8
When a statutory warranty is provided, Leach recommends reading the fine print carefully and asking questions before signing any paperwork.
“Check the details – exclusions, claim limits, servicing requirements and whether labour, diagnostics or parts caps apply,” she says.
Does car insurance cover mechanical faults?
No, your car insurance typically doesn’t cover mechanical failures or breakdowns, says Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“Standard car insurance doesn’t cover electrical failures or damage related to wear and tear,” she adds.
“Instead, depending on your policy, your car insurance is designed to cover your car for incidents such as accidents, theft, and damage caused by severe weather.”
Some car insurance policies do include roadside assistance as standard or optional.9
“At Youi, Roadside Assist is automatically included with our Comprehensive car insurance,” says Jackson. “So, if your car breaks down due to a mechanical failure, a flat battery or a flat tyre – or if you simply run out of fuel somewhere inconvenient – help is just a phone call away.”10
How long does a statutory warranty last across Australia?
Dealer guarantees vary by state and territory – and differ again based on how many kilometres the car has driven and how old it is when you purchase it. This table outlines the government-set conditions and what a licensed used car dealer must uphold.
State/territory | Vehicle odometer | Vehicle age | Dealer guarantee |
| New South Wales11 | Less than 160,000km | Less than 10 years | 3 months or 5,000km, whichever comes first |
| Victoria2 | Less than 160,000km | Less than 10 years | 3 months or 5,000km, whichever comes first |
| Queensland12 | Class A – Less than 160,000km Class B – 160,000km or more | Class A – No more than 10 years Class B – More than 10 years | Class A – 3 months or 5,000km, whichever comes first Class B – 1 month or 1,000km, whichever comes first |
| Western Australia (cars with a purchase price of at least $4,000)13 | Category 1 – Not more than 150,000km Category 2 – Between 150,000km and 180,000km | Category 1 – Not more than 10 years Category 2 – More than 10 years but not more than 12 years | Category 1 – 3 months or 5,000km, whichever comes first Category 2 – 1 month or 150,000km, whichever comes first |
| South Australia14 | Less than 200,000km | Less than 15 years | Up to $3,000 sale price – No warranty $3,001-$6,000 – 2 months or 3,000km, whichever comes first More than $6,000 – 3 months or 5,000km, whichever comes first |
| Tasmania15 | Less than 120,000km | Less than 7 years | 3 months or 3,000km, whichever comes first |
| Australian Capital Territory4 | Less than 160,000km | Less than 10 years | 3 months or 5,000km, whichever comes first |
| Northern Territory16 | Less than 160,000km | Less than 10 years | 3 months or 5,000km, whichever comes first |
How does an extended car warranty work?
Your used car dealer may offer you an extended warranty for an additional cost. Extended warranties are optional and may or may not grant any extra rights than you are already entitled to under your state or territory’s statutory warranty.3 Before buying an extended warranty, check that you actually receive benefits beyond what you are already entitled to and read the terms, conditions and limitations closely.3 A business cannot pressure or trick you into buying an extended warranty.17
What can void warranties on used cars?
If you encounter a problem with your used car, the last thing you want to discover is that the warranty you thought you had has become void for some reason.
While arranging repairs on a used car before contacting the dealer you bought it from might void your car’s statutory warranty,7 things that could void any remaining manufacturer’s car warranty on a used car include:
- Failing to service the vehicle on time1
- Using unqualified repairers18
- Adding prohibited modifications to the vehicle.1
Are used car warranties transferable?
If you’re wanting to sell a second hand car, any remaining manufacturer’s warranty may be transferable to the new owner.3
“Some used car warranties are transferable to a new owner, while others are not – this depends on the provider and policy terms,” says Leach. “Consumers should confirm transferability in writing if resale value is important.”
Who can help if you have problems with a used car warranty?
If the car with the concerning noise and blinking lights at the start of the article is yours – and you bought it from a used car dealer, with warranty remaining – you have a few options if things go awry with trying to get it fixed.
“Act quickly, stop driving the vehicle if advised, and contact the warranty provider before authorising repairs,” advises Leach. “We recommend keeping clear records and following the claim process exactly to avoid disputes.”
Even after the car’s warranty expires, you still have rights under Australian Consumer Law that you can rely on if there is a problem with your car.7,18
The level of cover will depend on the car’s age and condition,7 but if you discover a problem that fails one or more of the Australian Competition & Consumer Commission’s consumer guarantees, you may be entitled to a repair, replacement or refund of the car.17 As a first port of call, consider contacting your state or territory’s local consumer protection agency.
As an additional avenue for recompense, consumers in every Australian state and territory – except the NT and Tasmania – can access guarantee, compensation or claim funds from various associations, generally funded by dealer licensing fees.4
If you’re still in the research stage of looking for second hand wheels, you may find some further useful tips in our guide on what to check before buying a used car. Looking for car insurance before you purchase a car? See how Youi compares, consider starting a quote online or give us a call on 13 9684.
1 Source: Canstar – What is a Car Warranty and What Does it Cover in Australia?, April 2025
2 Source: Consumer Affairs Victoria – Motor car trader obligations – used car sales
3 Source: Australian Competition & Consumer Commission – New and second-hand cars
4 Source: Australian Competition & Consumer Commission – Consumer issues in the sale of second-hand cars, December 2025
5 Source: Drive – What is covered under a used car warranty?, May 2024
6 Source: carsales – Vehicle history report
7 Source: Consumer Affairs Victoria – Warranties on used cars
8 Source: Qld Government – Guarantees and warranties for second-hand vehicles
9 Source: Canstar – Cost of owning a car in Australia, June 2025
10 Youi Roadside Assist available with Comprehensive policies only. Exclusions, limits and fees may apply. Cover not available within 24 hours of taking out or upgrading to Comprehensive cover. For more details, see the roadside assistance T&Cs and Car PDS.
11 Source: NSW Government – Dealer guarantees and warranties
12 Source: Office of Fair Trading Queensland – Car Smart
13 Source: WA Government – Car warranties, November 2024
14 Source: Legal Services Commission South Australia – Second-hand motor vehicles
15 Source: Tas Government – Buying a new car, July 2022
16 Source: NT Government – Buying a new or used vehicle
17 Source: Australian Competition & Consumer Commission – Warranties
18 Source: Consumer Affairs Victoria – Warranties on new cars
