extended warranty

Submitted: Saturday, Dec 03, 2016 at 15:02
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G'day All : Is there a extended warranty out there worth buying ?? I.E
Has anyone had any experience with Toyota warranty but not for a Toyota .....
Got a price of about $1100 < 150,000 ks p/yr
getting a manual ranger 4x4 with 85,000 ks on the clock & wld like a safeguard for 1st 12 months or so .....any thoughts on this subject ?
Cheers Nick b
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Reply By: Member - Stephen L (Clare SA) - Saturday, Dec 03, 2016 at 15:26

Saturday, Dec 03, 2016 at 15:26
Hi Nick

If it was me, I would not be wasting my money. It sounds like a case of the salesman wants extra commission by selling you and extended warranty.

85k the car would be just run in and any issues should have well and truely been sorted.

Depending on the age of the vehicle, it still might have remaining original new car warranty.

From what I have seen and heard of in the past, if you have to make a claim, they will use the excuse that that issue is not covered in the fine print.

Just my thoughts on saving you $1100



Cheers






Stephen
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Follow Up By: Shaker - Saturday, Dec 03, 2016 at 15:38

Saturday, Dec 03, 2016 at 15:38
You are quick to condemn sales people, if you read the OP it clearly says
"Getting a manual ranger 4x4 with 85,000 ks on the clock & wld like a safeguard for 1st 12 months or so .....any thoughts on this subject ?"

Extended warranties are purely an insurance policy & often only cover major component failure. It would be better to get a reliable mechanical check & save the balance of the $1100.00
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Follow Up By: Member - Stephen L (Clare SA) - Saturday, Dec 03, 2016 at 16:11

Saturday, Dec 03, 2016 at 16:11
Hi Shaker

Are you involved in sales in the retail Industry?- no by the sounds of it. Have you also read what I fully stated?????, no by the sounds of it.


"85k the car would be just run in and any issues should have well and truely been sorted.

Depending on the age of the vehicle, it still might have remaining original new car warranty."


Trust me, I know how it works. Yes sales people are pushed to use "Add ON" sales to give the company extra dollars from the sale of any product.

Based on the $1100 fee charged by the people or car yard that are selling the product, the salespersons commission for that sale of the policy could be around $50 or more and the company could expect around $300 commission from the company that is selling the warranty.

Consumer Laws these days are very strict and if you do a little more research, many forums that you read will advise that extra "Add On" warranties are just a waste of money and a way to scare people into buying Extended Warranty for added peace of mind.

As I first said, 85k these days is not a lot and if the vehicle was going to gave any major issues, it must have had a very hard life by the previous owner and a car that you would not want to buy.


Cheers



Stephen
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Follow Up By: Shaker - Saturday, Dec 03, 2016 at 19:48

Saturday, Dec 03, 2016 at 19:48
My point was that the OP said that he "would like" the added protection, not that he had been pushed to buy it.
You are also very wrong regarding my experience, I was in the retail motor industry for 18 years, the last 8 years as GM of a Jaguar Rover Honda dealership, in that time I was never pushed & neither did I push my staff to to sell extended warranties. In fact, on one occasion I threw the Wynns extended warranty rep out of the showroom, after he told me that he would get his product into our company whether I wanted it or not.
My further sales experience was 20 years as a Yacht Broker.
Remember almost everybody is a salesman at some time, plumbers, carpenters, electricians have to sell their ability to do jobs, so if they haven't got tools in hand, they have to sell. Even when you apply for employment you have to sell yourself, & as I told my mechanics, if salesman don't sell cars, you have no work!
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Follow Up By: Member - Stephen L (Clare SA) - Saturday, Dec 03, 2016 at 20:19

Saturday, Dec 03, 2016 at 20:19
Hi shaker

All good, but I never said he was being pushed into it. But I still stick with my original comments, 85 k in only low mileage and if the rangers are as tough as they are mad out to be and it has a good service history, I personally feel he is wasting his money.

Cheers


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Follow Up By: D-MaxerWA - Saturday, Dec 03, 2016 at 23:09

Saturday, Dec 03, 2016 at 23:09
I bought one of those Wynns warranties 30 odd years ago. I was laughed at when I went to make a claim. I don't buy extended warranties on anything after that experience.
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Follow Up By: Paul E6 - Sunday, Dec 04, 2016 at 00:05

Sunday, Dec 04, 2016 at 00:05
I ha d a fortron warranty once, I recall it came in handy a couple of times.
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Follow Up By: Member - nick b - Sunday, Dec 04, 2016 at 09:31

Sunday, Dec 04, 2016 at 09:31
thanks for your replies ...
I had a extended warranty many years ago and found it be a waste.turned out that it only was covering major items such that didn't give problems .....
but was hoping things my have improved .
But this was a safeguard , ex gov vehicle so was most likely well serviced & looked after i guess .the way cars are these days doesn't take much to cost big $$$$ .
Cheers Nick b
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Follow Up By: Member - shane r1 - Sunday, Dec 04, 2016 at 18:37

Sunday, Dec 04, 2016 at 18:37
Hi Stephen L
I quite like a lot of your comments and information, but sometimes you get on your highhorse a bit quick!
Hi all,
My view on these warranties,
These " extended warranties " that are sold as add ons are mostly just insurance policies and should be considered for merit and value the same as any other insurance policy.
Cheers all
Robbo
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Reply By: Doc - Saturday, Dec 03, 2016 at 16:45

Saturday, Dec 03, 2016 at 16:45
If it's the same warranty as Toyota sell for newish Toyotas, then it will be a lot better than if it's a third-party warranty - ie AWN or similar.

I've had both. I bought an extended warranty from Toyota for a Prado years ago. I bought it just before the standard new car warranty expired, and about a year later the water pump seized, taking the timing belt and other stuff with it. Toyota towed the car to the dealer, and replaced everything required - no cost to me at all. Given the car was about 15,000 km from requiring a new timing belt (and tensioners, water pump etc), I was fully expecting them to ask me to contribute.

I also got an AWN warranty included (for no extra charge) on a grey import nissan a few years back. Got home & read the conditions, and realised it wasn't worth the paper it was written on. The limits and excesses, aling with the service conditions, were beyond ridiculous.

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Follow Up By: rocco2010 - Saturday, Dec 03, 2016 at 19:54

Saturday, Dec 03, 2016 at 19:54
Oh dear.

I recently bought a 2013 Prado with 80k and full service history and passed on the $1500 extended warranty because all I have ever read on here is that Toyotas never break down.

What have I done?

Cheers Rocco
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Reply By: Member - Racey - Saturday, Dec 03, 2016 at 18:02

Saturday, Dec 03, 2016 at 18:02
The genuine Toyota extended warranty on a Toyota vehicle is worth the money. The after market "Insurance Policies " I wouldn't touch the a "dirty" stick. It sound like you're not getting the real deal. Don't waste your money.

Cheers Jon
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Follow Up By: Frank P (NSW) - Saturday, Dec 03, 2016 at 18:36

Saturday, Dec 03, 2016 at 18:36
X2.

I had Toyota's extended bumper to bumper warranty for my Prado. It paid for itself after factory warranty ran out with two sizeable claims and no-one blinked an eye.

Not so rosy with the offering for the BT50. It was a third party insurance scheme with so many restrictions you'd be stupid to accept it.

For an outback tourer, the main one was that after factory warranty had expired, every service and every repair had to be done by my dealer in metro Sydney. No thanks.

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Follow Up By: Les - PK Ranger - Monday, Dec 05, 2016 at 08:00

Monday, Dec 05, 2016 at 08:00
Maybe what is worth considering is something like the extra Club4x4 recovery insurance, after all getting your vehicle out of a situation and home, or to a decently sizable population, can be the most costly item in the event of a breakdown.
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Reply By: TomH - Saturday, Dec 03, 2016 at 18:08

Saturday, Dec 03, 2016 at 18:08
I bought them for my two VW's Cost me about $3000 for the two Due to the fact that at 5 years old one has done 30,000 and the shopping basket has only done 19,000 it has proved to be a waste of money and as said the exclusions far exceed the inclusions.
But then after all the problems VW were having it looked like maybe being worthwhile.

However never had a claim of any sort
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Reply By: Member - MIKE.G - Saturday, Dec 03, 2016 at 20:30

Saturday, Dec 03, 2016 at 20:30
Bought a 2007 Honda Civic with the extended warranty. We found out the hard way that if the vehicle is not serviced as per the time frame - not the klms - the warranty is null and void. I told the salesman at the time of purchase that it was a second car for my wife and would be pushing to do 6000 k per year. No mention of the time line from the salesman.

Be careful!! Commissions can warp the truth.

Cheers,

Mike
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Follow Up By: TomH - Saturday, Dec 03, 2016 at 23:31

Saturday, Dec 03, 2016 at 23:31
Pays to read the fine print VW need service at 15,000k OR 12 months whichever comes first. My car had its 60,000k check at 26,000k but was 4 years old.

Wifes car has only done 3500k per year but gets serviced every 12 months
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Follow Up By: Les - PK Ranger - Monday, Dec 05, 2016 at 08:03

Monday, Dec 05, 2016 at 08:03
Mike, were they warranty issues caused by deteriorated oil ?
Or something totally unrelated to engine oil ?
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Follow Up By: Member - MIKE.G - Tuesday, Dec 06, 2016 at 20:55

Tuesday, Dec 06, 2016 at 20:55
Les, I contacted the dealer re a service and was told during the conversation that the warranty had lapsed as we had not had the vehicle serviced as per the "agreement" There was no issue to claim against.

Cheers,

Mike
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Reply By: Michael H9 - Saturday, Dec 03, 2016 at 22:12

Saturday, Dec 03, 2016 at 22:12
My experience has been that extended warranties on cars bought new where the extension is through the brand (dealer), are ok even if they are actually provided by a third party because the dealer in my case advertised it as being essentially the same as the initial warranty. Extended warranties on second hand cars are not the same, the list of conditions and maximum payout liabilities usually make them not worth the money. Extended warranties are insurance policies where the premiums are calculated according to what the dealer wants to cover, that's why there is a big range of opinions about whether they are worth it. To put it in perspective, life insurance on a 30 year old is far less expensive than on a 60 year old and the same applies to cars. Two thousand dollars might give you full cover on a car that is 4-5 years old, but will only give nominal cover with a lot of restrictions on a 7-10 year old car.
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Reply By: Member - Steve R (NSW) - Sunday, Dec 04, 2016 at 10:30

Sunday, Dec 04, 2016 at 10:30
I've had both Toyota Extended Factory Warranty and also Toyota Extended Warranty Insurance. Claimed under both - the second one recently for the rain sensor not working on my 200 Series Landcruiser. Cost was $392 covered by the policy. All good.

In regard to the Ford Ranger, my son bought a 2012 Ford Ranger with 84,000kms on the clock and 1.5 yrs original warranty. Just out of warranty the auto transmission failed. Haggled with Ford but to no avail.
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Follow Up By: Member - nick b - Monday, Dec 05, 2016 at 23:22

Monday, Dec 05, 2016 at 23:22
G'Day Steve : the auto trans sound like a common thing with the rangers ...
The cover Im looking at is Toyota's factor extended warranty , and they said it covers what ford would cover in ther warranty ......
Cheers Nick b
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Reply By: Bobjl - Sunday, Dec 04, 2016 at 14:22

Sunday, Dec 04, 2016 at 14:22
Nick, I have read some of the responses [but not all] to your enquiry.
Insurance is mostly about providing peace of mind but is also vital in many cases to ensure our financial security. Extended Warranties have made lots of people [other than claimants] and companies lots of money, in a few cases some consumers have had good experience with extended warranties. ASIC have concerns about most warranty providers, see link below.

ASIC's investigation found that over the past three years roughly $1.6 billion in premiums were collected on car insurance add-ons, while only $144 million was paid out in successful claim

Read more: http://www.afr.com/business/insurance/insurance-companies/asic-warning-to-car-buyers-extended-warranties-and-tyre-insurance-a-ripoff-20160912-gre2q8#ixzz4RprI8UV8
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If you were purchasing a Factory backed [a cover offered and underwritten by say the actual vehicle manufacturer], then the coverage may be more likely to do what you need if a sudden electrical or mechanical failure occurs [one that is not excluded]. Somtimes we need to rely on the reputation of the Vehicle and ensure we have an understanding of areas of concern - things that may go wrong and are high cost.

Consider also the scope of your Vehicle Insurance - is accidental damage such as contaminated fuel or the use of wrong fuel covered, those issues can cost many thousands of dollars.

Bob


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Follow Up By: AlbyNSW - Sunday, Dec 04, 2016 at 15:01

Sunday, Dec 04, 2016 at 15:01
The same could be said for car, boat or house or life insurance.

Of course the odds are stacked in the providers favour.....can't be done any other way

If you have a simplistic style vehicle it is not so important but any of the hi tech stuff gets expensive real quick
I have had extended warranty repairs done on two occasions that were big dollars. One was about 7k and the other 12k so I was glad I paid the premiums

I know another fellow with a higher end Mercedes that had a motor replaced due to it developing a knock and the replacement crate motor cost close to 90k plus fitting so there wasn't much change out of 100k when it was finished

It all comes down to whether you think it will provide you with value for money and peace of mind.
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Reply By: skulldug - Sunday, Dec 04, 2016 at 15:15

Sunday, Dec 04, 2016 at 15:15
Nick, I only have personal experience with genuine Toyota (not extended) warranty and they tried very hard to avoid/refuse my claim. The issue was eventually resolved but only after a few anxious weeks of arguing and letter writing.

I couldn't recommend them.

Skull
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Reply By: The Bantam - Tuesday, Dec 06, 2016 at 00:38

Tuesday, Dec 06, 2016 at 00:38
I once baught a warranty on a used car ....... when I got home and read the contract and what it excluded and how much I had to pay and there restrictions on repairers ........ on and on.

Warranties you purchase on used cars are pretty much useless.

read the contract in it's entirety, before you sign.

You will find the very little protection you might get is very very expensive.
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Follow Up By: The Bantam - Tuesday, Dec 06, 2016 at 00:49

Tuesday, Dec 06, 2016 at 00:49
If you have a minor problem , claiming will be more trouble than it's worth, If you have a major engine or transmission failure, the warranty will not even come close to paying for it AND you won't have the choice to shop the repair for the best price.

Na
not good
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Reply By: greybeard - Tuesday, Dec 06, 2016 at 11:17

Tuesday, Dec 06, 2016 at 11:17
Grab a copy of the Australian Consumer Law (specifically the warranty section), a copy of an extended warranty and a chair. Sit yourself down outside a dairy farm milking shed and have a read of both documents (actually read the ACL first and see if you need to read the extended warranty at all). In between count how many Bulls you see walking into the shed with the Cows at milking time.
See if the analogy leaps out at you ;)
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Follow Up By: Member - nick b - Tuesday, Dec 06, 2016 at 12:02

Tuesday, Dec 06, 2016 at 12:02
OMG ... this wld depend on who's milking shed i'm sitting at ....LOL
if my neighbours most likely more bull the cows ...

P.S i'm already confused .....what wld i b like after reading them :-(

Cheers Nick b
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Follow Up By: Shaker - Tuesday, Dec 06, 2016 at 12:48

Tuesday, Dec 06, 2016 at 12:48
It's really quite simple, as in any insurance policy, one party pays a premium & the other party provides protection.
However, it doesn't end there, the insured has other obligations that are laid out in the PDS, unfortunately a lot of policy holders don't uphold their end of the agreement & whinge when the claim is disallowed.

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Reply By: Member - Phil G (SA) - Thursday, Dec 08, 2016 at 22:22

Thursday, Dec 08, 2016 at 22:22
I prefer to self-insure. That way I don't have to make claims or deal with people who have no idea. Toyotas are pretty reliable. Mine's just turned 4 years old with nothing going wrong in that time.
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