Special: Extended warranty and scheduled servicing costs

[Arctra]

Hi guys

I test drove a Tiguan at Barloworld Five Dock yesterday, and the sales woman mentioned that next week they'll be running a special:

Free 3 year extended warranty to make it 6 years in total (or 160,000km - whichever comes first), and free scheduled servicing costs for 3 years.


Now to be honest, I didn't confirm whether that was an extention on the factory warranty, or a watered down extention, but it's better than a kick in the guts.

Also, I know there is debate over whether free scheduled servicing costs are a good thing or not, as you don't want them doing a shoddy job on the cheap to stay within budget, but in the first 3 years there shouldn't be too much concern with that. Where they might ping you is on "non-standard" servicing spares such as new brake pads, etc., so reading the fine print is probably advisable as no doubt you'll be tied to servicing with them only to keep the warranty.

Still, if you're looking for something like this to get you over the line, maybe it's your best option.

[Pullstarter]

That's a pretty good offer, but as you say as long as it's extended factory warranty and not some worthless driveline only warranty.

[clip]

I got the 6 year Premium cover with mine thrown in as well. The book lists a Standard cover too, but it does not cover as much (so make sure get the Premium one ). In simple terms, they will repair the parts covered, if you have the vehicle serviced by them, and them only. And the servicing must be in accordance with the specs laid out in the owners manual.

Basically it covers everything including Suspension, Fuel managment, Transmission (except clutch for us), colling system, electronics and electro-mechanical (that's all your doors, windows, rain sensing wipers etc), steering, Air conditioning, body and interior (the Standard cover does not include any interior cover), engine (all internally lubricated parts, but excludes block and blown head gaskets), Diff and drive line, brakes.

So they get 6 years full servicing from, you get a little more peace of mind. 2015 sounds like a long way off though!

[Pullstarter]

No offence to VW dealers in general but my local dealer isn't touching my car unless it's a warranty issue. I'm more than happy with the service I get from Canberra VW Centre < free plug

[Transporter]

For the first 3 years (factory warranty) you don't have to go to dealer for servicing.

Extracted from ACCC document.

Please have a read about what the ACCC had to say about your NEW CAR WARRANTY !!
"A common concern for new car buyers is their right to have someone, other than the dealer, service the car without putting warranties at risk. Judging by the large number of calls received by the ACCC many buyers are uncertain.
To put the record straight, dealers cannot declare a warranty void if the buyer has the vehicle serviced by someone else. The buyer, however, has an obligation to ensure that the selected service centre employs qualified staff, that servicing matches manufacturer’s specifications and only genuine or appropriate quality parts are used. If the centre implies that it can perform genuine servicing but falls below expectations then the customer have rights and remedies against it regardless of staff qualifications
Where a problem arises (other than in servicing) and it is covered by the warranty, the vehicle should be taken to the dealer for repair.
Under the Trade Practices Act dealers cannot limit their warranty obligations or claim the warranty is void if the vehicle is serviced by someone other than the dealer or its agent. The statutory warranty applies to new and second hand cars. A consumer expects a second hand car to run effectively without repairs although, depending on price and age, it may not be expected to last as long as, or perform to the same standard as a new car. The warranty does not apply to cars sold for spare parts or one bought at an auction. At auctions the seller’s only obligation is to give clear title with no legal restriction on ownership.
The Act prohibits anti-competitive exclusive dealing which can involve a business attaching conditions to the sale of goods thereby restricting the buyer’s freedom to choose who they deal with; in the case of a vehicle, who will service it. One particular type of exclusive dealing is third line forcing when the supply of a good is conditional on the purchaser acquiring other goods from a third party. In the motor trade an example would be the car dealer directing a customer to a particular finance company to raise the purchase price.
Third line forcing is unlawful.
A dealer may offer consumers “express” warranties as a way to attract sales by showing that they stand by their vehicles. Express warranties do not override statutory warranties in any way. They may be given on the basis of “money back, no questions asked” or there may be conditions attached such as regular servicing or time limits on claims. A consumer may void an express warranty if, for example, the car is fitted with non-genuine parts. This is something to check before purchase.
If a manufacturer, retailer or service provider chooses to give a voluntary express warranty then the law requires that they honor it.
The car industry is not the only part of commerce where there is some confusion about warranties and refunds. There is widespread misunderstanding by both buyers and sellers of the real nature of warranties and the difference between statutory and extended warranties.
The statutory warranties entitles the purchaser to seek a refund, compensation, repair or replacement if the goods are faulty, fail to do the job intended or do not match the sample shown or have hidden defects.
Some retailers encourage consumers to buy an extended warranty offering additional benefits for extra cost. Consumers should check that the protection offered is more than that available under the statutory warranty.
Remember you are not entitled to a refund if you change your mind or discover the product is cheaper elsewhere".
By Professor Allan Fels, (former) Chairman of the Australian Competition and Consumer Commission.

[clip]

Thanks Transporter, good to read it straight from the source.

Unfortunately Arctra, what the dealers are offering is not really an extended warranty (in fact the wording in the docs never mention "warranty). It is called a Mechanical Protection Plan:

"The Mechanical Protection Plan is not an insurance policy. It is our OWN personal Mechanical Protection Plan, designed to ensure that your vehicle is maintained to the highest standard and to protect you from costly repairs."

Under this arrangement, I have been advised that if you do not have your vehicle serviced by them from new - even though by law, you are not under any obligation to do this - failing to do so will void the additional Mechanical Protection Plan provided by them.

I guess, just make sure you don't pay for it and then you don't have to worry which ever way you go.

[Transporter]

Thanks Transporter, good to read it straight from the source.

Unfortunately Arctra, what the dealers are offering is not really an extended warranty (in fact the wording in the docs never mention "warranty). It is called a Mechanical Protection Plan:

"The Mechanical Protection Plan is not an insurance policy. It is our OWN personal Mechanical Protection Plan, designed to ensure that your vehicle is maintained to the highest standard and to protect you from costly repairs."

Under this arrangement, I have been advised that if you do not have your vehicle serviced by them from new - even though by law, you are not under any obligation to do this - failing to do so will void the additional Mechanical Protection Plan provided by them.

I guess, just make sure you don't pay for it and then you don't have to worry which ever way you go.

Hmm, arrangements for making trade practice law illegal, that's interesting.
Under the Trade Practices Act dealers cannot limit their warranty obligations or claim the warranty is void if the vehicle is serviced by someone other than the dealer or its agent.

Mechanical protection plan - yes, but not 3 years manufacturer warranty.
So, it still stands that for first 3 years you go for servicing somewhere else and after that their protection plan takes over and you have to go for servicing to them. If otherwise I would obtain that from them in writing and than see the office of ACCC.

[clip]

Under the Trade Practices Act dealers cannot limit their warranty obligations or claim the warranty is void if the vehicle is serviced by someone other than the dealer or its agent.

It's the other point about the M P Plan that needs clarification. Surely someone has sorted this before?

[clip]

rotflol - I actually just read the "contract" and I quote:

"*Subject to minor economic adjustment (???). Limits of Liability: the maximum amount which can be claimed for any one repair is limited to the value of $1500.00..."

Mind you, I guess it might pay for an Accelerator Pedal or a Glove Box Lock - both of which are specified in the "Parts Covered"

[Spook]

Hi guys

I test drove a Tiguan at Barloworld Five Dock yesterday, and the sales woman mentioned that next week they'll be running a special:

Free 3 year extended warranty to make it 6 years in total (or 160,000km - whichever comes first), and free scheduled servicing costs for 3 years.

Assuming it is the same offer, I saw it advertised in this weekend's SMH. This offer excludes the Golf VI, Tiguan and Passat CC. Only available on cars ordered and delivered before May 31.

[Arctra]

Assuming it is the same offer, I saw it advertised in this weekend's SMH. This offer excludes the Golf VI, Tiguan and Passat CC. Only available on cars ordered and delivered before May 31.

Maybe it's currently limited to those vehicles, but she definitely mentioned it in relation to the Tig, coz it's all we looked at with them. Maybe they are extending it?

[Transporter]

If the Tig is well build and I assume it is I wouldn't be worry too much about additional 3 years warranty.

The things to consider with such warranty plans are:
Does it cover servicing under severe driving conditions or will you have to pay for intermediate servicing (every 7,500km)? If yes. How much?

What about if you chip or re-flash ECU?

Will you keep it longer than 3years?

Is the 6 years protection plan taking away any bargaining when purchasing the vehicle? I would rather get $2000.00 off the price than free servicing for 3years, because I'm sure that they will recover their money in the following 3 years.

Nothing is free. Not even the death.

[clip]

... Express warranties do not override statutory warranties in any way. They may be given on the basis of “money back, no questions asked” or there may be conditions attached such as regular servicing or time limits on claims.

There is widespread misunderstanding by both buyers and sellers of the real nature of warranties and the difference between statutory and extended warranties.

The statutory warranties entitles the purchaser to seek a refund, compensation, repair or replacement if the goods are faulty, fail to do the job intended or do not match the sample shown or have hidden defects.

After conversations with ACCC about this issue, this is what has been relayed to me:

Statutory warranties are NOT manufacturers warranties. In fact, there is NO specified "time limit" on statutory warranties - from my understanding, the law of reasonableness applies. So the 1, 2, 3 etc year manufacturers warranty is not necessarily "statutory" (which explains a whole lot if anyone has owned a Mercedes Benz or an Aprilia recently).

As far as "Express" or "Mechanical Protection Plan" go, quite simply, that is a personal contract between you and the dealer, and the dealer is entitled to put whatever conditions they like into the contract- as long as it does not contravene the statutory conditions. But that does not necessarily mean that you can take your car and have it serviced by anyone for the first 3 years just because there is a manufacturers 3 year warranty, because that may not necessarily be considered statutory warranty requirements. So failing to abide by the conditions of the contract between yourself and the dealer with the Express or Mechanical Protection Plan, you may be hard pressed to argue if you did not abide by their conditions of having the car serviced exclusively by them.

Fortunately or unfortunately, the laws around statutory warranties are not quite as prescriptive as I assumed.

[Transporter]

After conversations with ACCC about this issue, this is what has been relayed to me:

Statutory warranties are NOT manufacturers warranties. In fact, there is NO specified "time limit" on statutory warranties - from my understanding, the law of reasonableness applies. So the 1, 2, 3 etc year manufacturers warranty is not necessarily "statutory" (which explains a whole lot if anyone has owned a Mercedes Benz or an Aprilia recently).

As far as "Express" or "Mechanical Protection Plan" go, quite simply, that is a personal contract between you and the dealer, and the dealer is entitled to put whatever conditions they like into the contract- as long as it does not contravene the statutory conditions. But that does not necessarily mean that you can take your car and have it serviced by anyone for the first 3 years just because there is a manufacturers 3 year warranty, because that may not necessarily be considered statutory warranty requirements. So failing to abide by the conditions of the contract between yourself and the dealer with the Express or Mechanical Protection Plan, you may be hard pressed to argue if you did not abide by their conditions of having the car serviced exclusively by them.

Fortunately or unfortunately, the laws around statutory warranties are not quite as prescriptive as I assumed.

I don't have a problem with this I service all our cars myself and dealer does only warranty repairs. I would never sign any contract like that.

P.S. You could have had a conversation with someone at ACCC, but fortunetely what is on the paper that counts.

[clip]

I would never sign any contract like that.

well, there's actually no problem in signing one, just be aware of the conditions - and if you are being charged for it, maybe think it through first. Personally, I wouldn't pay for one.