Who buys an extended car warranty in Australia?
On average Australian’s purchase 1 million new vehicles each year (916,968 in 2020, 1,062,867 in 2019). Therefore, a similar number of vehicles will be coming out of new car warranty, which is usually the time an extended car warranty will be considered. The highest-selling brands being Toyota, Mazda and Hyundai.
Auto Auto’s own data shows that whilst presenting the highest volume of car sales – these volume brands don’t reflect the highest uptake of extended car warranty insurance. Conversely, the luxury segment of Mercedes-Benz, BMW and Land Rover take our extended car warranty.
Why do luxury owners take our extended car warranty?
Some of the reasons for this are:
Higher-priced vehicles can have higher associated costs involved in repairs due to the quality of parts and price of labour. This presents a better value for money proposition should a claim be required.
Supply shortages. With delays of up to 24 months for new vehicles (especially luxury vehicles), owners are in a situation where they may need to hold on to their vehicle for longer than expected while waiting to upgrade to a new car. They don’t want to do so without protection.
Prestige European models can be seen as less reliable than their Japanese counterparts.
Extended car warranty products in Australia vary in their claim limits and benefits. Auto Auto only offers a comprehensive extension that covers you up to the market value of your vehicle. This naturally is more attractive to those with higher-priced vehicles.
If you’re considering if an extended car warranty is right for you, read more here to help you make an informed decision.