Extended Warranty on a Used Car from a Dealer?

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LostBoyNZ

584 posts

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#103307 3-Jun-2012 20:47

I'll be buying a fresh import 2005 Prius this month from a dealer. They offer a 2 year warranty for $500. It also includes an AA safety check + certified odometer, neither of which (if I understand it right?) should be needed because they had to do such checks to be able to import the vehicle. Plus it'll be fully groomed, new oil & filter.

What do people think about buying warranties from dealers? I know it'll be less of a headache if I do get it and something goes wrong... but $500 is a lot to pay for 'peace of mind'.

Does anyone know what I could expect from the Consumer Guarantees Act? Although the document is vague, a $13,000 car isn't a "cheap car".

Any thoughts or experiences? Thanks!!

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Batman

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#635212 3-Jun-2012 21:02

i suggest you read the fine prints ... there are about only 20 things that is covered and there is a limit on coverage which is not much more than $500 and only a few people are allowed to touch your car - on the contrary there are about 10,000 things that aren't covered ...

usually ...

Batman

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#635213 3-Jun-2012 21:02

oh and to keep being covered you have to scale mount everest every 6 months ...

usually ...

plod

272 posts

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#635227 3-Jun-2012 21:33

Warrants generally only cover mechanical faults, does not cover wear and tear, and let's face it, the majority of stuff that goes wrong with cars is caused by wear and tear. As for Everett being mentioned, failing to keep up with services, even 50km over due could void your warranty. Not getting things fixed during the service that have been pointed out to you could also void the warranty, even if it's not related to a fault you are trying to claim for.

mattwnz

20164 posts

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#635235 3-Jun-2012 22:03

LostBoyNZ: I'll be buying a fresh import 2005 Prius this month from a dealer. They offer a 2 year warranty for $500. It also includes an AA safety check +?certified?odometer, neither of which (if I understand it right?) should be needed because they had to do such checks to be able to import the?vehicle. Plus it'll be fully groomed, new oil & filter.

What do people think about buying warranties from dealers? I know it'll be less of a headache if I do get it and something goes wrong... but $500 is a lot to pay for 'peace of mind'.

Does anyone know what I could expect from the Consumer Guarantees Act? Although the document is?vague, a $13,000 car isn't a "cheap car".

Any thoughts or experiences? Thanks!!

Not sure a second hand Prius of that era is the best idea. I know someone who purchased a second hand one and had all sorts of problems with the battery system, and not sure if an extended warranty would cover that either. You may be better with something like a corolla or a honda civic. There is also a honda civic hyrid, but I don't think it is as sophistcated as the toyota. I was told to avoid CVT transmissions too by my mechanic.

LostBoyNZ

584 posts

Ultimate Geek

#635271 3-Jun-2012 23:45

Thanks for that, I think I'll give that option a BIG miss!

About reliability though, that's some bad luck with the Prius there. Typically though, they do have a very good reputation for being reliable (using message boards and car fault reporting websites as sources). Many owners also stick with the Prius brand, just updating every so many years, which is typically a good sign. I might also get unlucky though, but I might with any car. Tough call, but I'm happy to give this a go.

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plod

272 posts

Ultimate Geek

#635306 4-Jun-2012 07:48

LostBoyNZ: Thanks for that, I think I'll give that option a BIG miss!

About reliability though, that's some bad luck with the Prius there. Typically though, they do have a very good reputation for being reliable (using message boards and car fault reporting websites as sources). Many owners also stick with the Prius brand, just updating every so many years, which is typically a good sign. I might also get unlucky though, but I might with any car. Tough call, but I'm happy to give this a go.

i wouldn't say miss it, but do read the fine print

LostBoyNZ

584 posts

Ultimate Geek

#635311 4-Jun-2012 08:22

As you mentioned there's a massive number of exclusions, but also the excess on a $505 warranty is $350 and the maximum amount of $ they'll cover isn't that high either.

http://www.olgomotors.co.nz/pdf/Optimum%20Policy_V3_11_10%20FINAL%204.11.2010.pdf

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plod

272 posts

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#635507 4-Jun-2012 16:12

Warranty also don't cover fluids or cleaning of parts

nate

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#635516 4-Jun-2012 16:26

Word of warning, mate bought an extended warranty and the company went out of business three months later.

Do your homework thoroughly before buying.

martyyn

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#635522 4-Jun-2012 16:34

Ive only ever been involved with warranties for BMW's but $500 for two years sounds incredibly cheap. What exactly are they covering for that amount ?

mattwnz

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#635532 4-Jun-2012 16:45

LostBoyNZ: Thanks for that, I think I'll give that option a BIG miss!

About reliability though, that's some bad luck with the Prius there. Typically though, they do have a very good reputation for being reliable (using message boards and car fault reporting websites as sources). Many owners also stick with the Prius brand, just updating every so many years, which is typically a good sign. I might also get unlucky though, but I might with any car. Tough call, but I'm happy to give this a go.

Toyotas are definitely near or at the top when it comes to reliability. However Prius's are different from other toyotas, in that they do have expensive batteries, which will need replacing at some stage. I am not sure what the life cycle is of them, and I guess it also may depend on how much use it has had. I would get the battery checked on it by a professional, who should be able to tell how much life it still has in it.

nzkiwiman

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#635846 5-Jun-2012 09:41

My Father just brought a 2007 Mini Cooper S with a 2 year warranty included, and then paid another $350 to have it topped up for another year. Unsure of what the pros/cons of such moves are, although I know they blocked me from driving the car with the regular insurance policy.