Extended warranty

[SK00LD]

I read through the PDS of the Allianz 2 year VW branded extended warranty, and the Allianz generic 3 year extended warranty, and they're pretty much identical. Only real difference I could see if the VW branded one includes roadside assist. The Allianz warranty is the only one I'd go with. The Swann warranty requires you to service at a dealership, and all the other ones are pretty much worthless.

I have been told by a dealer that VW is going to re-introduce their own factory backed warranty in the next 12 months.

I can't find the VW branded (Allianz backed) warranty. I assume only dealers can sell these? I'll see what my dealer says on Monday. I have 5 months to decide so plenty of time to shop around. No extended warranty is still an option too...

[blergen]

Yep. I think the dealers only have access to the VW branded one. Keep in mind that the premium may go up as the car ages / nears warranty expiry.

[SK00LD]

Dealer offered

2 years - VW branded - Unlimited kms - $2900
2 years - Allianz New Car - 50,000km limit - $2256 (matched broker)

If roadside is included in VW branded then that will save me the $100 per year I pay NRMA so technically makes is $450 difference between the two.

I'm still leaning towards the VW branded option but really wish I had the balls to just get none haha.

[Jozzy]

Yep. I think the dealers only have access to the VW branded one. Keep in mind that the premium may go up as the car ages / nears warranty expiry.

Are you referring to insurance premiums going up when the car ends warranty?

[Jozzy]

Dealer offered

2 years - VW branded - Unlimited kms - $2900
2 years - Allianz New Car - 50,000km limit - $2256 (matched broker)

Seems a lot for the slim chance that something might break within that 2 year period. Run the chance and save the money or if something does go wrong is it going to be much more than $3000 to replace?

[Johnbu]

Seems a lot for the slim chance that something might break within that 2 year period. Run the chance and save the money or if something does go wrong is it going to be much more than $3000 to replace?

Iike any insurance you have to work out what the benefits vs cost are.

At nearly $3k, I'd decline and take the risk.

Don't forget, on average the claims will be much less than the premium as VW, the insurer and dealer all make money.

Also don't forget, 6, even 12 months after warranty expires there's still a good chance VW will pay for a large portion of the repairs or discount the repairs (you'll have to pay for the diagnosis by the dealer).

I've never been one to buy extended warranty on appliances, these days with statutory warranty, there is little need.

[cappuccino]

Stop buying extended warranty and worrying about 'contracts' that limit warranty.

1. Under Australian consumer law, there is no minimum or maximum time for warranty, it rests on the type of good and what is a reasonable time a good should last. For example, given that a car is replaced every 6-7 years, it is reasonable for a consumer to expect that car to be free of manufacturing defects for 6-7 years.
2. A seller is obligated to fix faults regardless of time.
3. If they refuse, simply lodge a case in the small claims court making the point in 1. and 2., you are pretty much certain to get a judgement in favour. this only costs $100ish

If you read the many judgements from small claims, they have always ruled in favour of the consumer.

for example, a case where a flat screen TV died in the 3rd year, the warranty was for 2 years, the court made the case that a TV should last 6-7 years since that is the average time people replace them, and as such, the seller had to either replace, repair or refund 4/7 of the price paid (as the buyer only got 3 years of use from what should have beeen 7).

hence when buying new goods, i never buy warranty, you are already protected from faults under consumer law.

consumer law agencies have already said many times, extended warranty is a waste of money, and that limits to warranty is not fool proof, cosnumer law always overrides attempts to limit warranty.

[sisilet]

I have purchased extended warranty with allianz and recently got clutch shudder. The dealer upgraded the software for me and still found the same issue. they told me there is problem with the clutch. They contacted allianz to get a claim pre-approval, but allianz came back to them and asked them for some photos of the clutch to prove this is not natural wearing. The dealer quotes me $1000 to dissemble the gear box to take the photos. Worse things is that allianz may say the clutch is just natural wearing, and the clutch will then be replace on my own cost which is almost $5000.

Does anyone have the similar problem before with allianz? how did you deal with it?