Mechanical Warranties v CGA

[GTTpower]

Dont know if this has been covered before but are dealer mechanical warranties worth it?
Looking at getting a car from a dealer and was under the impression they were similar to all other types of warranties , and made irrelevent since they are covered under the CGA anyway.

[Leon]

The level of "deniability" on mechanical wear and tear is so high ("I'm not fixing that, what do you expect the car has done 120,000km and it worked when I looked at it, you must have been thrashing it"), that I'd suggest that mechanical warranties on a car would be about 100 times easier to deal with than attempting CGA fights with a car dealer.

Unless we are talking a brand new car of course.

[dnalunchie]

What does the warranty cover and what does it not cover.

EG Engine, Transmission, turbo, etc etc etc

Also consider what the excess is, some companies have no excess some companies have an excess as high as $500

Also consider the cost of the warranty vs the cost of normal maintenance.

Consider buying a warranty for 3 years for $2000 which is what AA charges


For this situation we will assume an excess of $400.

Lets say that during the course of the warranty your transmission fails.

The warranty companies says no worries, we will fix it.

So you fork out 400 and they fix it, then you get sent a bill for consumables (such as oil etc as warranty doesnt cover this).

Lets say they charge you 100 for consumables.

That comes out at a total cost of $2500

Now I am not saying that buying the warranty is a bad idea I am merely saying that it is a good idea to consider how the cost of buying and USING the warranty vs just budgeting a small amount for repairs.



(For what its worth i would deffinatly buy a warranty, CGA doesnt really apply to used goods)

[Alex B]

Most retailers would have you belive it doesn't apply to new goods either.

[dnalunchie]

Most retailers would have you belive it doesn't apply to new goods either.

yeah, luckily the good ones simply present both sides of the story and let the customer decide......

[matt dunn]

Depends on the car.

What vehicle?

[Sick Puppy]

The other issue with warranties is that they may commit you to using a particular repairer.

Not car-related, but my TV and DVD players were under warranties that I purchased (at the time I thought it was a moment of naivety, three repairs later... ), and there was only one repairer in Wellington I was allowed to take it to. Next electronics - look them up on google, the biggest bunch of unprofessional semi-trained monkeys you'll ever come across. No communication, poor to deal with, unprofessional receptionists, staff generally had no idea how the repair was progressing or anything.
[/rant]

Anyhow, you have no control over who does the repair, or the quality of that repair... should be all good, but...

[Leon]

If I was buying a Corolla (oh wait, I always buy a Corolla!) then I'd probably not bother with a warranty. But if I was buying something like an Sti or an Evo, then I wouldn't hesitate about getting a warranty.

[Bling]

The other issue with warranties is that they may commit you to using a particular repairer.

Not car-related, but my TV and DVD players were under warranties that I purchased (at the time I thought it was a moment of naivety, three repairs later... ), and there was only one repairer in Wellington I was allowed to take it to. Next electronics - look them up on google, the biggest bunch of unprofessional semi-trained monkeys you'll ever come across. No communication, poor to deal with, unprofessional receptionists, staff generally had no idea how the repair was progressing or anything.
[/rant]

Anyhow, you have no control over who does the repair, or the quality of that repair... should be all good, but...

I got a tv from Harvey Norman down here, got the extra warranty (not my call) and it was sweet. It played up so the repair company picked it up and delivered it back. No hassle to me what so ever. So yes, valid point, check what is required of you come claim time and who you can and can't use for said repairs.

[BZG Wagon]

I use to sell the warranties on electical products when I worked in retail. Personally, I don't think they are worth it for a guy like me (talking retail goods here), although you'll find some of these warranties go beyond the minimum.

For example - some cover wear & tear, some of the fridge warranties will cover food spoilage, and because they keep your details on record, you don't have to go searching for a reciept (so long as you remember). Also with some of these you don't need to bring the goods into a store, they'll just send a courier to you, and some will give you a temp replacement while your things are being fixed. Also a 'no fault no charge' option which is good should you send it away and they determine nothing is wrong with it. They make a butt load of money from this stuff, so they want you to have a good experience.

Yes, the law is on your side once the "twelve month warranty" has expired but in most cases you'll have to argue to death with some retail sales person who thinks s/he knows everything about the law. Which then means you need to talk to the store manager, and depending on how s/he feels you'll end up talking to their head office who will cave regardless, just to keep you happy as a customer. Is it worth the hassle - probably not.

Yes, the CGA covers second hand goods (so cars), but it's so ambigious how is anyone going to determine whether the goods (in this case a car) were in a fair condition for the price?

[Looonie]

As a generalised rule, mechanical warranties are worth purchasing.

As I'm sure everybody on here is well aware, there are a substantial amount of moving and electrical components on an automobile, any of which can fail at any time, especially if the vehicle has done more than a few thousand km's.

Under the CGA, yes you have cover, however the downsides are that you need to file a complaint with either MTA or disputes tribunal, await a hearing date, pay costs of hearing etc etc all while you still have no vehicle, no compensation and no guaranteed chance of a finding in your favour.

With a decent mechanical warranty (I can only comment on Autosure as that's all I will sell because I prefer to sell things I can stand behind) you are required to have the vehicle serviced yearly at an MTA approved workshop (so they are doing their bit to ensure the vehicle is looked after) and you will have far less hassles and delays while arranging for a repair. You merely drive into your MTA workshop, hand them your policy document and say "fix it" then pay the excess upon collection of your repaired vehicle.

Presuming of course its a genuine mechanical/electrical failure.

The list of Autosure covered components is fairly extensive (fills an A4 sheet in 4 columns with pretty small font size) and the Extreme policy covers additional further items and includes some wear and tear components.

At the end of the day, the only person who can decide if its worth it is the person buying it, but personally I think spending $1000-2000 for the peace of mind and saving on time/stress/hassle is money well spent.

[dnalunchie]

The other issue with warranties is that they may commit you to using a particular repairer.

Not car-related, but my TV and DVD players were under warranties that I purchased (at the time I thought it was a moment of naivety, three repairs later... ), and there was only one repairer in Wellington I was allowed to take it to. Next electronics - look them up on google, the biggest bunch of unprofessional semi-trained monkeys you'll ever come across. No communication, poor to deal with, unprofessional receptionists, staff generally had no idea how the repair was progressing or anything.
[/rant]

Anyhow, you have no control over who does the repair, or the quality of that repair... should be all good, but...

I got a tv from Harvey Norman down here, got the extra warranty (not my call) and it was sweet. It played up so the repair company picked it up and delivered it back. No hassle to me what so ever. So yes, valid point, check what is required of you come claim time and who you can and can't use for said repairs.

yeah well Harvey Norman is totally BOSS,

[dnalunchie]

http://www.autosure.co.nz/content/docs/ ... xtreme.pdf


read this

Pretty much covers everything.

If I was buying a warranty I would only go with Autosure as their policies cover up to 12,000 per claim where as most others only go to 5,000. May not be a big issue on a simple car but anyone who owns a 4wd or turbo will know well that a rebuild of engine or Gbox can easily exceed 5,000

[Grrrrrrr!]

If its a daily driver that isn't going to get modified or taken to the track and you don't mind paying for other people to service your car, a warranty is useful.

If you are slack with servicing, lose paperwork or intend to modify (other than cosmetic mods) be prepared to have your claim turned down.

And as the others have said, look at the policies, from what i recall a mechanic mate saying some of them charge you an excess for each component that fails, so it part X dies and takes part Y with it you get charged two excesses, which make your warranty not worth a hell of a lot if the things that fail don't cost much more than the excess.

Then you have the 1/2/3 year thing. It it doesn't fail after a year of your abuse will it fail in the next two or is a bulletproof thing? *shrug*

[rolla_fxgt]

Re Next. Yes agree they are muppets, but I think its the products they are the service agent for too. Kinda made for each other I thought.

CGA is the law, and retailers that try to deny it tend to find they come out worse off, either lawyers/Target/Fair Go/ComCom get involved and it gets messy for them from there.

I had a business law lecturer who loved going in to big box retailers, pretending to want to buy something, say a tv, and would ask about reliability etc, and the sales person would inevitably get around to try and selling him an extended warranty, and he'd say what about the CGA, and usually they'd say it didn't apply. He then took extreme pleasure in telling them how it did apply, and that they were acting illegally in trying to say it didn't, and telling them this in a loud voice so everyone in earshot heard him ripping bits of the sales person.
All ways made me laugh.

I remember a year or so ago Harvey Norman was one retailer singeled out for overselling warrenties, saying otherwise the buyer was on their own. But I must say in my experience they have improved, I haven't been offered an extended warrenty by them in ages.

But for a car I guess it all depends on the terms, and the value/importance of the car, and the value of replacement parts.

[Al]

I don't like mechanical warranties.

Why spend $1000 or sometimes more for a warranty, for a car which you should have had checked out by your trusted mechanic, or yourself after obviously a thorough search for a car that is up to your standards.

Then proceed to pay someone to service and change your oil and filter for you for the next however many years you own the car and have the warranty for.'

IMO just keep the thousand bucks in the bank and add $20 to it each week. If nothing goes wrong with the car, spend it on women and booze, waste the rest.

Mechanical warranties are for kids on minimum wage that can add it to the finance agreement because they can't afford for anything unforeseen to go wrong while they are paying it off at $50 a week for the next four years.

[Bling]

One claim and you will potentially start saving money. I had one for 3 years and required MTA approved service every 15,000km. So one in three i'd pay my friendly mechanic to change the oil and stamp the book. Didn't claim, but that is a good thing really. Was $600 for 3 years and was comprehensive.

Bit like car insurance really, one cracked windscreen and your policy just paid for itself. One blown gearbox and you start to save money. I for one will always pay for certainty on big ticket items.

Each to their own.

[BZG Wagon]

Depends on the price of the warranty. Cars are quite reliable now; assuming you buy something decent to begin with.

I've owned:
* Honda Prelude Si (1 yr). No issues other then a CV joint / boot & cracked top tank. Sold @ 220kms
* Mazda Familia Infini (2 yrs). No issues other then a CV boot. Sold @ 185kms
* Toyota BZ Touring Wagon (2 yrs). No issues other then a thermostat. Sold @ 185kms.
* Toyota Caldina GTT (4 yrs). No issues other then warped manifold. Currently @ 153kms.

The cost of warranties on those cars vs. what I've actually spent on the cars in the last 9 years would indicate they're a waste of time. Yes, it's a bit of insurance if something drastic goes, but seriously what are the chances. Kinda like lotto.

Just don't buy a car raped and moleted by muppets to begin with.

[Elmo]

Ive had mech warrenties on 2 of my cars, one of which I got a new (import) enigine, fitted, including oil (I knew the mechanic), with no excess paid.

Cost 1200 for the warrenty from memory.

Servicing, well I worked for a workshop that was approved to do the lubes, so some free oil, a heavily discounted filter, and some stamps later, my servicing was covered

[Emperor]

I've only had 2 warranties.
One on the Stagea and never claimed through Protecta.

Old Forester was through some other company, claimed 2 gearboxes, a clutch, new turbo and rear diff.... No excess on any claim. They paid for consumables too. Must find out the name of the company..