Warranty Creep: How Carmakers Are Quietly Undermining Your Right To Repair
“We’ll have to void your warranty if you don’t service with us.” “You must use genuine parts.” “Only our technicians are trained to do it properly.”
These are the kinds of statements Australians hear every day when they purchase a new car — especially if that car is electric.
They sound official. Legal. Final. But often, they’re not just misleading – they are wrong.
Welcome to the world of warranty creep, where car manufacturers stretch the boundaries of warranty conditions to control the post-sale market, lock out independent workshops, and limit consumer choice.
What is warranty creep?
Warranty creep refers to the gradual expansion of warranty conditions – often through fine print or verbal pressure at the dealership – that appear to limit a consumer’s rights.
It typically involves:
- Requirements to use only “genuine” parts;
- Claims that servicing and repairs must be done by authorised dealers;
- And, increasingly, “extended warranties” that sound generous but are only valid if the customer stays within the dealer network.
It is a quiet but effective strategy which undermines Australia’s independent repair sector, and it is on the rise.
The “extended” warranty trap
Several carmakers are now offering extended warranty programs of up to ten years, but with significant strings attached.
- Nissan advertises a 10-year extended warranty, but access to the full term is conditional on servicing at Nissan dealerships.
- Mitsubishi’s 10-year warranty comes with the same requirement.
- MG promotes a 10-year/250,000 km warranty – again, tied to dealership servicing for the full duration.
These warranties are promoted as “peace of mind,” but what they actually do is restrict consumer choice and discourage independent servicing.
For many customers, this link between warranty and dealership loyalty isn’t made clear until after purchase.
What the law says – and what carmakers don’t tell you
Under the Australian Consumer Law (ACL):
- You are entitled to have your vehicle serviced by any qualified mechanic;
- You do not have to use “genuine” parts – only parts that are fit for purpose;
- A manufacturer cannot void your warranty simply because you choose an independent workshop.
These rights apply to all vehicles – petrol, hybrid, or electric.
As the ACCC puts it: A warranty does not override your consumer guarantee rights, which apply regardless of what the manufacturer says or whether you use a dealer for servicing.
And yet, we continue to see warranty documents and marketing materials that suggest otherwise.
This creates confusion, reinforces a false sense of obligation, and places unfair pressure on consumers.
Why it matters: control, not safety
This isn’t about protecting vehicle safety or ensuring quality work. It is about controlling the post-sale ecosystem.
As vehicles become more complex – particularly with software-driven systems and EV platforms – access to data, software updates, and diagnostics is as valuable as access to the physical parts.
Warranty conditions are increasingly used as leverage to:
- Restrict access to service and repair information;
- Withhold scan tool compatibility and telematics data;
- And lock customers into dealer networks by creating fear and uncertainty about their rights.
Industry surveys show that more than 40 percent of consumers believe they will lose their warranty if they don’t service with the dealer – a belief that benefits carmakers but is not supported by the law.
What comes next — and what we’re doing about it
At the Australian Automotive Aftermarket Association, we’ve raised our concerns directly with the ACCC, and we’ll continue to press for action.
We strongly object to the rise of extended warranties that are conditional on dealership servicing.
They may look like generous offers, but in practice they mislead consumers, reduce competition, and lock out independent service providers who do high-quality work.
We’ve warned regulators that unless they intervene, this tactic will become even more widespread – especially as EVs and software-controlled vehicles become the norm.
Independent workshops have a critical role to play here – not just in providing competitive and skilled servicing, but also in helping educate customers about their rights.
When trusted local mechanics explain what the law really says, it empowers consumers to make confident, informed decisions.
Because at the end of the day, fair competition, honest information, and freedom of choice are worth protecting – and we intend to keep fighting for them.
If you would like to offer your thoughts on this subject, please email advocacy@aaaa.com.au