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Mechanical warranties

Help with the cost of an unexpected breakdown, arranged across New Zealand with or without a loan from us.

Get a warranty quote Call 0800 995 014

The short answer

What is a mechanical warranty and do I need one?

A mechanical warranty helps pay for repairs when listed mechanical or electrical parts of your vehicle fail unexpectedly. Whether you need one depends on the vehicle’s age and kilometres, and on how you would cover a large repair bill. Finance Made Easy arranges a mechanical warranty in New Zealand through a range of warranty providers, with or without a loan.

Last updated

Why arrange it with us

One conversation, whether or not you borrow.

We arrange the warranty through a range of warranty providers and explain it. The cover itself is provided on the provider's own terms.

With or without a loan

You do not need a loan to get a warranty: we arrange one whether or not you are borrowing. If you are arranging vehicle finance with us, ask about a warranty in the same conversation.

Explained before you commit

We go through what is covered, what is not, any limits or excess and the price in plain English, and you get the terms to read yourself.

Across New Zealand, online or by phone

We work with people right across New Zealand. Get a warranty quote online, call 0800 995 014 or email info@fmefinance.co.nz.

What it covers

What is included in a mechanical warranty?

An older man pointing into the engine bay of a silver hatchback while a younger woman with a service booklet listens

A mechanical warranty typically covers the repair or replacement of listed mechanical and electrical parts that fail suddenly, rather than parts that simply wear out.

Each warranty has its own list, and the cover level you choose decides how long that list is. The parts warranties in New Zealand commonly name include:

  • Engine internals, such as pistons, valves and the oil pump
  • Gearbox, transmission and drive components
  • The cooling and fuel systems
  • Steering and suspension components
  • Electrical parts, such as the alternator and starter motor

Used vehicles

What does a mechanical warranty cover on a used car?

On a used car, a mechanical warranty usually covers the same kind of sudden mechanical or electrical failure, but whether a vehicle qualifies, and for which cover level, often depends on its age and kilometres.

Once a vehicle is outside its manufacturer’s warranty, a failed gearbox or engine part is usually paid for by the owner. A mechanical warranty can take some of that cost off your hands for the parts it lists.

If you bought from a dealer, you may also have rights under the Consumer Guarantees Act. Consumer NZ explains how they work.

Buying with one of our car loans? Ask about a warranty at the same time, so both are sorted before you drive away.

What is not covered

What are two items typically not covered in a car warranty?

Wear and tear parts and routine servicing are the two things most car warranties leave out: parts that wear with normal use, like brake pads and tyres, and the scheduled servicing that keeps the vehicle running.

Other common exclusions are below. The provider’s own terms are what apply to your cover, and we go through them with you before you sign.

  • Wear and tear parts: brake pads and discs, tyres, clutch plates, wiper blades and bulbs
  • Servicing and consumables, such as oil, filters and spark plugs
  • Damage from an accident, misuse, neglect or modifications
  • Faults that existed before the cover started
  • Failures linked to missed servicing: many warranties ask for servicing on schedule, with the records kept

Cost

How much is a mechanical warranty in New Zealand?

It depends on the vehicle and the cover you choose, so there is no single price. The make, model, age and kilometres of the vehicle, the length of cover, and any claim limits and excess all shape the cost.

The quickest way to a real figure is to get a warranty quote. We come back with the options for your vehicle and the price of each before you commit to anything. To start, have these handy:

  • The make, model and year of the vehicle
  • The current odometer reading
  • The registration (rego) number

Is it worth it

Is it worth getting mechanical breakdown insurance?

It depends on how you would pay for a large, unexpected repair. Mechanical breakdown insurance, or a mechanical warranty, trades a known cost now for help with an unknown one later.

Some people value that certainty, especially with an older vehicle they rely on every day. Others prefer to put money aside and cover repairs themselves. These questions can help you weigh it up:

  • Could you cover a major engine or gearbox repair from savings?
  • Is the vehicle outside its manufacturer’s warranty, or close to it?
  • How much do you rely on it for work, school runs or getting around?
  • Do the parts listed in the cover match the repairs you are worried about?

How it works

How do I get a mechanical warranty quote?

Five steps, and nothing is arranged until you say so. More warranty questions are answered on our FAQ page.

  1. 01

    Tell us about the vehicle

    Use the quote form or call 0800 995 014 with the make, model, year, kilometres and rego.

  2. 02

    We come back with options

    We set out the cover available for your vehicle from the providers we work with, and the price of each.

  3. 03

    An inspection, if needed

    Depending on the provider and the vehicle, a mechanical inspection may be needed before cover can start. If it is, we tell you how to get it done.

  4. 04

    Read the terms

    We walk you through what is covered, what is not and how claims work, and answer any questions.

  5. 05

    You decide

    If you want to go ahead, we arrange it. If you are also borrowing with us, both can be sorted together.

Side by side

Mechanical warranty or mechanical breakdown insurance?

The two terms are often used as if they mean the same thing, and they work in a similar way. The difference is mostly in who stands behind the promise.

Mechanical warrantyMechanical breakdown insurance
What it isA contract with a warranty provider to pay for, or carry out, repairs to listed parts that fail during the term.An insurance policy that pays for repairs to listed parts after a sudden mechanical or electrical breakdown.
Who stands behind itThe warranty provider named in the contract.An insurer.
Cover and exclusionsListed parts, by cover level. Wear and tear, servicing and accident damage are usually excluded.Much the same: listed parts, with wear and tear, servicing and accident damage usually excluded.
ClaimsUsually approved before repairs start, within the limits and excess in the terms.Usually approved before repairs start, within the limits and excess in the policy.

General comparison only. Terms differ between products, and the wording of the product you choose is what counts. We confirm how the product you choose works, and its terms, before you commit.

Questions

Warranties, answered.

Short answers to what people ask us most. For anything specific to your vehicle, give us a call.

No. We arrange mechanical warranties with or without a loan, so you can get cover even if you are not borrowing. If you are also looking at vehicle finance, we can sort out both at the same time.

Usually wear and tear parts such as brake pads, tyres and clutch plates, routine servicing, accident damage, misuse or modifications, and faults that were there before cover started. Each policy lists its own exclusions, so the wording is what counts.

We arrange cover through a range of warranty providers, and each provides its cover on its own terms. Finance Made Easy arranges it, explains the options and the terms in plain English, and is your first point of contact. Depending on the provider and the vehicle, a mechanical inspection may be needed before cover can start.

Ask us when you apply. Whether a warranty can be included in the amount you borrow depends on the lender and is subject to lender criteria. You can also pay for it separately.

Ask us with the make, model, year, kilometres and rego. Whether a vehicle qualifies, and for which cover level, depends on the warranty provider’s criteria, usually including the vehicle’s age and kilometres.

Applications are not an offer of finance. All lending is subject to lender criteria, affordability, verification and responsible lending checks. Calculator results are estimates only. This page is general information, not financial advice.

Finance Made Easy is a trading name of TrueNorth Financial Services Limited, FSP1011270, and a member of Financial Services Complaints Ltd (FSCL), membership 9517.

Request a call back

Rather we call you?

Answer a few quick questions and we aim to call you within 15 minutes during business hours. It is an enquiry with no obligation, and it is not an offer of finance. Ready to go? Apply online now.

  • Vehicle loans, personal loans and mechanical warranties
  • Plain English, no jargon
  • We aim to call you within 15 minutes during business hours
Prefer to talk? 0800 995 014 info@fmefinance.co.nz

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