Car Loans with Extended Warranties

Buying a car can make you life that little bit easier, providing you with an easy way to get from A to B. While there might be no guarantees the car won’t have faults, there are ways to safeguard your purchase. A manufacturer’s warranty acts as a guarantee of the vehicle’s quality for a certain period of time, usually between two or three years, but what about after that time? If you’re looking at financing your vehicle purchase, and want an extension on the manufacturer's warranty, then you might want to consider a car loan with an extended warranty.

Comparison of car loans with extended warranty available

6 of 6 results

Checked 22 September 2026

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Finder Score	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
7.5 Great RACV Used Car Loans Fixed1 - 7 Years $5,000 - $100,000	7.5 Great	Interest Rate (p.a.) 7.99% to 17.99%	Comp. Rate (p.a.) 8.57% to 18.47%	Application Fee $499	Monthly Fee $0	Monthly Repayment $642.27	Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.	Go to siteView details Compare product selection Compare	loading
Promoted 7.9 Great RACV New Car Loans Fixed1 - 7 Years $5,000 - $100,000	7.9 Great	Interest Rate (p.a.) 6.99% to 18.19%	Comp. Rate (p.a.) 7.57% to 18.29%	Application Fee $499	Monthly Fee $0	Monthly Repayment $632.86	Go to siteView details Compare product selection Compare	loading
8.7 Great Driva Car Loan Fixed or Variable1 - 7 Years $2,001 - $300,000	8.7 Great	Interest Rate (p.a.) 6.57% to 36%	Comp. Rate (p.a.) 6.78% to 36%	Application Fee $0 - $500	Monthly Fee $0	Monthly Repayment $613.62	ContinueView details Compare product selection Compare	loading
8.1 Great RACV Green Car Loan Fixed1 - 7 Years $5,000 - $100,000	8.1 Great	Interest Rate (p.a.) 6.49% to 17.69%	Comp. Rate (p.a.) 7.08% to 17.79%	Application Fee $499	Monthly Fee $0	Monthly Repayment $628.18	ContinueView details Compare product selection Compare	loading
7.6 Great Westpac Car Loan Most LovedFixed1 - 7 Years $10,000 - $130,000	7.6 Great	Interest Rate (p.a.) 6.49% to 12.99%	Comp. Rate (p.a.) 7.9% to 14.34%	Application Fee $250	Monthly Fee $15	Monthly Repayment $635.55	$0 establishment fee: Save $250 when you borrow $10k to $130k with a new secured car loan from Westpac. Apply by 2 July 2026 and be approved and accept the contract by 16 July 2026. T&Cs apply.	ContinueView details Compare product selection Compare	loading
8.7 Great Gateway Bank Car Loan Variable1 - 7 Years $3,000 - $75,000	8.7 Great	Interest Rate (p.a.) 7.69%	Comp. Rate (p.a.) 7.9%	Application Fee $149	Monthly Fee $0	Monthly Repayment $628.52	ContinueView details Compare product selection Compare	loading

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To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.

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What is extended warranty for a car?

When you purchase a new car, the manufacturer will often issue a warranty to guarantee that the car will not break down within an agreed-upon period of time. This is to ensure the quality of the car, and the warranty will make provisions for normal wear and tear.

Once the warranty expires, however, the manufacturer has no responsibility to ensure the quality of the car, despite the fact that you may have been under the impression of the vehicle lasting several years. A car loan with an extended warranty will extend this warranty for a certain amount of time, giving you an additional guarantee for the quality of the car.

How does it work?

Car loans with extended warranties can be offered on new and used vehicles, and work by extended the manufacturer’s guarantee by a certain amount of time, or for a certain number of miles. The typical time of extension is between 12 months and three years.

Extended warranties are referred to as ‘exclusion warranties’, meaning they cover everything on the vehicle excluding some items, such as brakes or tyres. Inclusion warranties are typically offered by dealerships and only cover the parts listed in the policy. Extended warranties differ between providers, so be sure to check the terms offered by your provider to see what is and isn’t covered.

Statutory and manufacturer’s warranties

When you buy a new or used vehicle, you may be entitled to free warranty from the seller. A statutory warranty is a type of ‘inclusion’ warranty, as such only covers the parts listed in the policy.

New cars have a minimum 12-month statutory warranty from the date of sale or 20,000km, whichever comes first. Used cars under 10 years old with less than 160,000km have a 3-month or 5,000km statutory warranty. Both of these warranties must be provided free of charge.

Extended warranties: What you need to know

Extended warranties are usually unique offers, so it’s important to read the fine print. These policies may be offered as additional cover to your original warranty, meaning that not everything from your original warranty will be covered. Some typical exclusions for extended warranties include:

• Wear and tear
• Car modifications, such as paint changes, tints, etc.
• Defects that result from misuse of the vehicle, such as overheating or lack of oil
• Some parts of systems which are specified in the policy.

There are also various requirements which must be met for the warranty to be applicable. Some of these include regular services for the car and proper care and maintenance. There’s also likely to be conditions relating to excess payments and payout limits.

Tips on car loans extended warranties

• Compare your loan and warranty options before you apply
• Check the limits on each of the parts, and how much you’ll be able to claim
• Don’t sign the deal on the spot, take the contract home to read through
• Confirm the terms and conditions in writing
• Don’t purchase extended warranty if it is a requirement for your car loan, as you are likely to pay more than its really worth.

How to compare car loans with extended warranty

• Terms of the extended warranty. The terms of the warranty, as mentioned above, will differ between loan providers, and some will be more competitive than others.
• Loan terms and amount. While the extended warranty is the ‘sweetener’ of this offer, you also need to play close attention to the details of the loan. Check the possible terms and amount offered by the lender for the car loan, and if this meets your borrowing needs.
• Fees. Most car loans come with some fees, such as loan establishment fees, monthly fees, or early repayment fees, so see what you will be charged for each of the different features of the loan.
• The lender. The lender’s reputation and how easy they are to contact should also inform your decision as to the loan you apply for.

Pros and cons

Things to watch out for

Before you sign up to a car loan that offers an extended warranty, it’s important to check the fine print. You should avoid taking on one of these loans just for the extended warranty, as this should be seen as an incentive to the loan, rather than a reason to take the loan on. You need to consider the value of the loan in relation to the value of the extended warranty, so avoid applying for the loan before you think about this.

Extended warranties are offered as ‘add-ons’ for a reason, and so you shouldn’t feel pressured into signing up to one if you don’t want it. There are laws against salespeople pressuring car buyers into taking out extended warranties, because they can be costly. Also, many extended warranties are restrictive in what they cover.

Frequently Asked Questions

• Can I include an extended warranty in my car loan?

  Some lenders allow you to roll the cost of an extended warranty into your car loan, while others may require you to pay for it separately. If you do include it, your repayments will increase slightly and you'll pay interest on the warranty cost as part of your loan.

• Does an extended warranty affect my car loan approval?

  Usually, an extended warranty doesn't affect your eligibility for a car loan. However, including the cost in your loan amount may increase your total borrowing and could impact your serviceability assessment.

• Is it better to buy an extended warranty from the dealer or a third party?

  It depends on cost, coverage and convenience. Dealer warranties are often easier to arrange, but third-party providers may offer more flexible or cheaper options. Always compare what's covered and whether servicing conditions are reasonable.

• Can I cancel an extended car warranty after buying it?

  Yes, most providers allow cancellation within a cooling-off period, usually 14 to 30 days, for a full refund. After that, you might be eligible for a partial refund depending on how long you've held the warranty and whether any claims have been made.

• Does an extended warranty transfer if I sell my car?

  Many extended warranties are transferable to a new owner, which can add value when selling your car. You'll usually need to notify the warranty provider and pay a small transfer fee.

• Are extended warranties worth it for used cars?

  They can be, especially if your used car is out of its manufacturer warranty period or has a higher risk of mechanical issues. However, consider the cost against the likelihood of repairs and whether you can afford to cover potential fixes yourself.

• Does an extended warranty cover everything a manufacturer warranty does?

  Not always. Extended warranties often have exclusions for wear-and-tear parts such as tyres, brake pads or batteries. Review the product disclosure statement carefully to understand the specific inclusions and exclusions.

• How long does an extended car warranty last?

  Most extended warranties cover an additional 1 to 5 years after the original manufacturer warranty expires. The duration and conditions depend on the provider and the age or mileage of the car.

• What happens if my car loan is paid off before my extended warranty ends?

  Your extended warranty continues until its expiry date, regardless of your loan status. Once the loan is repaid, you simply keep the warranty documents and contact the provider directly for any claims.

• Can I get an extended warranty for an electric or hybrid car?

  Yes, several providers now offer extended warranties for electric and hybrid vehicles. These often include coverage for electric drivetrains and battery components, though terms and coverage limits may vary.

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Written by

Matt Corke

Head of Publishing Ventures

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Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates. See full bio