Overview of boat warranties
Warranty, guarantee, our promise – these terms often appear in advertising and marketing for a range of products. Often this hype may give the buyer the impression that they are being offered something special, an additional extra with the purchase. So what how do you separate the hype from the actual help in a boat warranty or guarantee? We’ve prepared this overview with information from government and reputable sources to put perspective on your boat purchase.
Boat Warranty v Guarantee
For starters, a warranty is a type of guarantee but is separate from a consumer guarantee. A warranty is essentially defined as a voluntary promise made, usually in writing, by either the manufacturer or seller or both. A warranty is a promise to replace or repair defective products and is limited to a set timeframe and under a set of conditions, as stipulated in the warranty.
In the case of boats, which in Australia are sold mostly through dealers, you will find the warranties are issued by the manufacturer but the dealer or seller may issue a separate guarantee or promise associated with the sale.
A consumer guarantee is a right you receive as a purchaser of goods in Australia, which is legislated under the Australian Consumer Law. Warranties and guarantees fall under the area of interest of both the Australian Competition and Consumer Commission, the ACCC on a national basis and under individual state government departments, ie Fair Trading and Consumer Affairs. The national law covers purchases made after 1 January 2011.
So when purchasing a boat, you do have automatic guarantees under these laws, but these may vary depending on who you are purchasing from and vary for new and used boats. A warranty becomes enforceable under the law once the purchase is completed.
Multiple Boat Warranties
Due to the nature of boat building, there will often be separate warranties issued for new boats, to cover individual parts of the boat and for individual items of componentry. The ‘brand’ name or builder, may issue a warranty for their part of the work, ie hull and structure, the engine or power plant would be covered under that manufacturer’s warranty as would certain electronics and other componentry.
When comparing a number of boats with a view to purchase, it may be wise to ask the dealer for details of the all the warranties so you can truly compare the quality of the deal you are being offered. The dealer may offer a separate warranty or guarantee in addition to the manufacturer warranties to make the deal even more attractive.
When making the decision to undertake a major purchase such as your dream boat or even a basic small runabout, you would understandably have an expectation of what should happen if something go wrong with the boat. But your personal expectations may differ from what you are legally entitled to under the warranty or consumer guarantee.
New boats and used boats sold through a licensed dealer are covered under statutory laws, however, purchases through private sellers are not covered under the same laws. Check with your state fair trading department for your rights when purchasing a used boat from a private seller.
New boats usually come with all the warranties. When purchasing a used boat, you will want to check if the warranties on certain parts have expired or are current and ensure that these warranties are transferable from the original purchaser to you. Warranty coverage for used boats is also available for purchase through some insurance style companies.
So there is some help in the hype, but also some hype in the help as you automatically have certain rights as a boat buyer.
Read other articles on our Jade Boat Loans website for more information on how to optimise your boat warranty and visit both the ACCC and your state government websites for specific details on boat warranties and guarantees.
Of course your Jade Boat Loans consultant will be on hand to provide whatever assistance they can in explaining terms and directing you to the appropriate sources for information. This is all part of the quality service you receive when dealing with our qualified marine boat finance brokers.
Jade Boat Loans are specialists in marine finance for all types of boats and will source a great new boat loan deal for you.
Disclaimer: The information contained in this article is sourced from government and reputable sources, however, it is intended as a guide for general information.