Extended Warranty?? - Austrian Wonky Network

[Crazy Dazz]

I think I already know the answer, but I'm asking anyway. Are the warranties provided by this company worth anything, or just a complete scam?

I am looking at a couple of vehicle purchases, and the idea of an extended warranty is attractive. The cars are of an age when I KNOW things will go wrong, and one of the cars could be bloody expensive to fix.
Honestly I can’t understand why somebody can’t offer a decent extended warranty. In principle, it is simply an insurance policy, whereby the risk is effectively shared by all policy holders.
Firstly the wording of this policy is the worst I have ever seen. It blatantly says that regardless of anything else, any claim is only payable at their absolute discretion.
On the whole, the exclusions seem reasonable, although some are a worry. VVT componentry is excluded (how many modern cars don’t have VVT?) Cylinder head damage is not covered if there is ANY evidence of corrosion or overheating, only the aicron compressor is covered, etc.
Water pumps are covered, but water leaks aren’t, so if your pump is leaking???
Excluded “pre-existing” conditions include anything that might be reasonably assumed to have existed, whether you knew about it or not. So if something fails 6 months into the warranty, it could be “reasonably assumed” that there was some fault there at the start.
Consequential damage, including covered components is completely excluded, so if the cylinder pin fails, that’s covered, but if the conrod then punches through the block that isn’t?

Furthermore the administrative requirements are onerous. Not only must you complete 6 monthly servicing, but you have to post a coupon to them each time within 7 days or void the policy. Once the car hits 10 years, it must have a safety inspection every 3 months. And the procedure to actually get a claim approved is laborious.

Of course I have read some horror stories about this company on the net. Anyone here had any direct dealings?

I must give credit where due (and this may well be the ultimate warning) despite advertising the product on their website, the guys at Prickles have seemed almost reluctant to sell me one of these warranties.

[Kryton]

If your that concerned about it, or cant afford to fix any issues yourself that may arise, the simplest solution is to not buy that car.
If you cant afford to maintain it, you cant afford to own it.
Save up more or look at something else.
FWIW, i have had an AWN warranty and the biggest issue i had was finding a mechanic that wanted to do the work when they were notified who was paying for it.

[EB#]

I reckon all those warranties are a roll of the dice. Your own opening post
presents a thorough and detailed argument for not doing it.

An older car will need fixing. Budget for it and then fix it. If it's a euro car,
then make the budget larger. Also, as kryton says, if you don't want the hassle
don't buy it at all.

[MattSAU2XR8]

A better use of the money would be go pay a mechanic to do a thorough mechanical and general inspection of the car including compression test and CK head test (looking for exhaust gas in the cooling system). Ask the mechanic to then tell you:
- Is there anything that will need to be repaired in the foreseeable future?
- Is the price they are asking a fair price for this sort of car, not necessarily a bargain, but fair, since if its a fundamentally good car then may not need to sell it to you for a bargain, although that would be nice?
- Is this type of car prone to any problems which won't show up until they break, eg. CVT transmissions in Nissans, transcooler in radiator in many cars?

It could take up to 3 hours if the mechanic includes the compression test depending on how many cylinders, so this might cost about $300 give or take, but its highly likely that he will find at least some small problems that you can get the price reduced for, eg. worn engine mount or marginal suspension rubbers or exhaust on the way out etc...

I should have done this when I bought my XR8 since shortly after buying it the (roadworthy) exhaust needed replacing, the diff got noticeably more clunky, the boots on the steering rack needed replacing, and a heap of rear suspension rubbers are also in need of replacement.

Another time I was helping a mate buy a car and we found what looked like a good deal on a late model front wheel drive Ford Corsair Ghia (Pintara) wiht about 140 kkms. Car was immaculate and was surprising quick for a pensioner looking car. But we put it in for a check and one of the cylinders wsa down about 40 psi on compression check. Mechanic said it'd likely need a rebuild within two years. So we let it go. Owner was a bit upset :-(

[turbodewd]

Extended warranties are a rort. I never get them for anything. They are only offered because they are a money-making exercise for those offering the product or the warranty.

[wicko]

All these things have conditions that fundamentally favour the warranty provider, not the consumer. They will do whatever they can to avoid or minimise a payout. Imagine water pump lets go and cooks the motor - can't see them paying any more then the water pump.

You flagged the conditions that says you have to have it serviced 6 monthly - what is their definition of a service ? Who has to do the service (factory dealership?), what if you had it serviced 6 months and 1 day or your receipt that you have to send them was delayed by Australia Post - I'd suggest the warranty will lapse. How do you contact these guys, do they have offices throughout Australia, how long have they been in business for?

If you get the warranty for $50 that carries limited risk. If the warranty is 20% of the cars purchase price then that's an expensive cover for car that is not new and is therefore likely to need maintenance.

I'm dealing with an established insurance company for a claim where someone back into us. We have the persons details and the damage is only $500. The headaches I'm going through make me think i'll take my insurance to another business at next renewal.

PS - there is usally a kickback or commission to the people selling the product. If the dealer is trying to talk you out of it then that sends a message.

PPS - For the record I never buy an extended warranty on anything given the life expectancy of most things and the cost of the cover (vs purchase price).

[eb2fairmont]

Save your money. These things are a rip off.

[damo6]

if the paper its written on is of decent qaulity it may be good for wiping ones bum with.

[xisled]

He is buying the car at Pickles Auctions . So I am guessing it is a buy it now or you have won the auction. So the car cannot be really inspected by a mechanic.

Any car that is 5 years old, I would not buy an extended warranty, I would just budget in the price of purchase for repairs.

Being an auction who knows what condition the car is in. It could be great it could be bad. If the price of the car is around what you have to spend on a car, maybe look for something a bit cheaper so you have some left over cash, to spend on repairs.

[Morexbs]

The warranty will not cover anything that is ever likely to fail and will only cover things that will never fail.Don't waste your money.