The dealership warranty myth - what the ACCC actually says

If you have bought a new car in the last decade, you have probably been told - by a salesperson, by a service advisor, or by another driver who heard it from somewhere - that you must have it serviced by the dealership to keep your warranty intact.

This is, in plain terms, not true. And the ACCC has been saying so, in writing, for over a decade.

What the law actually requires

The manufacturer's warranty obligates them to repair or replace defective components for the warranty period - usually 5 to 7 years for a new car. In return, you the owner agree to service the car to the manufacturer's published schedule, using parts and fluids that meet the manufacturer's specification.

Critically, the law does not say who has to perform that servicing. The ACCC has stated this explicitly in multiple guidance documents:

"Consumers can have their new vehicles serviced by an independent repairer of their choice without affecting the manufacturer's warranty, provided the work is carried out according to the manufacturer's specifications using appropriate parts and fluids."

Where the myth comes from

Three places, mostly:

1. Genuine confusion at dealerships - some service advisors believe it themselves because that is what they were told during training.
2. "Capped-price servicing" plans that lock you into the dealership for the duration of the warranty period. These are commercial arrangements, not warranty conditions.
3. Recall and goodwill repairs, which dealerships can sometimes do for free where an independent shop cannot. This is real, but rare, and applies only to specific known issues.

What you actually need to keep warranty intact

• Service the car to the logbook schedule (intervals and items).
• Use parts and fluids that meet manufacturer specification (not necessarily branded - just matching the spec).
• Have a qualified mechanic do the work.
• Keep records - stamped logbook plus itemised invoices showing parts and fluids used.

That is it. Any qualified independent mechanic - mobile or workshop-based - who follows those four rules will keep your warranty valid. The dealership has no special status under the warranty itself.

Why this matters financially

Dealership servicing typically runs 30-60% more expensive than an equivalent independent service for the same work, parts and time. Over the warranty period of a typical new car, that adds up to several thousand dollars. Knowing your rights here is worth real money.

If you want to verify any of this directly, the ACCC's website has a dedicated page on new car retailing and consumer guarantees - link on our Resources page.