I purchased a car 2 months ago from a local dealer, and also purchased a 3 year extended warranty (think it's Protecta off the top of my head).
Importantly, the car also came with a 3 month dealer warranty. No conditions - as far as I am aware - were attached to the 3 month warranty.
Last week, the car suffered a massive failure of some yet-to-be-specified drivetrain component while I was on a roadtrip. Luckily, it happened about 10km from my destination, and not in the middle of nowhere with no reception.
AA came to the rescue, and sorted me out with a rental car as well as transporting the vehicle back home (due to the distance of over 500km it has to be done on a car transporter and not a normal tow truck to keep cost down).
I've gone back to the dealer and informed them that the vehicle has had what I believe to be a serious fault (it also had a "moderate" fault 12 hours after I picked it up, which took them over a month to fix).
I've also said that my preference will be to reject the vehicle as it's not of acceptable quality based on performance to date, but obviously it needs to be assessed first by the mechanic.
The dealer has basically said that any cost of repair (as they are pushing for it to be fixed, not refunded) will be met by the extended warranty company. \ However, this seems a bit "off" to me as they have a three month warranty they have placed on it themselves, notwithstanding CGA obligations.
In effect, they are asking me to use my money (as I paid for the extended warranty of course - it's not like they gave it to me for free) to contract out of their obligations both under their dealer warranty and then CGA, which trumps that anyway.
How would you proceed here? In some respects, I'd like to say "if you want to fix as opposed to refund, then I don't want you to use my extended warranty - wear the cost yourselves".
intrade,
Nov 25, 8:05pm
kazban should be able to help. Also next time buy your car from millars cars in henderson auckland. Recommended by loads of people on here.
trouser,
Nov 25, 8:27pm
They cannot use your extended warranty to fix faults that should be their problem. My recommendation would be to get the repair estimate and ask the dealer to r we pair under cga provisions. If they won't then send them notice that you are rejecting the vehicle and would like a refund. If they don't then take them to the mvdt. Cheap to file and if things are as you say they are you will win
samthesituation,
Nov 25, 8:38pm
Thanks, this is the approach I will take.
gamefisher,
Nov 25, 9:17pm
Extended means "extended", primary warranty take first precident in my oppinion.
clark20,
Nov 26, 7:21am
yeah I love the way some dealers use the warranty to get them out of any responsibility under the CGA, smart for them but covers up their obligations.
stevo2,
Nov 26, 7:29am
I've never had an extended warranty so I might be wrong but do some policies state that you can have x amount of claims per year or x amount of dollars of claims? You don't want to risk having your next claim refused because you have been over you $ limit for the year.
curlcrown,
Nov 26, 7:35am
Notwithstanding the extended warranty you must first allow the dealer an opportunity to assess and if they chose to repair the vehicle within a reasonable time, this would be done at a place of their choosing. Regarding the warranty you may find that it actually costs nothing to use it, they usually have a limit per claim, not a total limit over the duration of the warranty. IN the case, if you use it the dealer would usually pay the excess. If you use the warranty you can go to a place of your choosing.
curlcrown,
Nov 26, 7:39am
Usually a limit per claim, not a total limit over the warranty period.
kazbanz,
Nov 26, 9:53am
Ok we have a few questions/issues all rolled into one post. It is impossible to give a total 100% accurate response without knowing the Year / Make /model / miles travelled of the vehicle concerned-Simply because a 1985 500000km car will have a different cover under cga etc than a 2019 2000km vehicle. So response is generic. First of all you are DEFINITELY within you rights to ask to reject the vehicle. The process is outlined on the MVDT website. You do need to reject the vehicle in black and white-e mail or pen/paper though so there is no question you have done so.I would ensure there is definite proof you have rejected the vehicle. You will by the sound of things need to go to MVDT if the dealer refuses to refund. MVDT will determine if the failure is substantial enough to accept that rejection. In that letter you need to be clear you do NOT give them permission to carry out repairs using the warranty. Second a dealer offering a three month dealer warranty is nice and all good for feel good BUT they cannot in any way contract out of their responsibilities/obligations under the SOGA and CGA. Or in a nutshell I feel (without knowing vehicle details) MOST LIKELY they are responsible for the repairs to the vehicle. -as in 99% chance. No way you should be unwillingly using your warranty to pay for repairs. Just to clarify what you have -you have purchased INSURANCE -as in mechanical breakdown insurance from "protecta" You will find that you have a total claim limit PER CLAIM generally unlimited number of claims. That you will have an excess to pay -ie you pay the first 100-$400 per claim and you pay for consumables-oils/fluids etc. The dealer using your MBI to pay for repairs IMO isn't "dodgy" as such. As long as they cover all costs associated with the MBI and you give permission. The second part is important. Just a note re rejection. MVDT can refuse rejection and offer another solution if the vehicle has had any damage. -ie a ding/dent etc.
kazbanz,
Nov 26, 10:02am
If the op is going down the reject the vehicle path then the nature of the failure does need to be assessed but often by the person rejecting the vehicle not the dealer. also MBI ALWAYS costs you to claim in some way. Be it fluids.cost of not being able to transfer the warranty. the excess or a mixture of all three. personally if going the reject path I would be rejecting then lodge a MVDT claim then see what assessment is ordered by MVDT--and make very very sure what mvdt "request" is carried out
curlcrown,
Nov 26, 10:13am
Yes, but a reasonable dealer would offer to pay the excess and fluids etc directly acciated with the repair if it occurs within a reasonable time after purchase. Even if rejecting the vehicle the dealer must be able to examine the car themselves before refunding. Surely most dealers are reasonable people and there are rights and responsibilities of dealers and buyers. Most dealers don't like this sort of thing and want to sort it out fairly. I've personally seen people who have bought cars being quoted thousands of dollars to fix "faults" after purchase which resulted in the dealer spending just a few hundred to sort it ending in satisfaction for both parties.
kazbanz,
Nov 26, 11:06am
It depends entirely on the path the OP wants to go down and their view as to the dealer using the MBI to pay for repairs OP feels is the dealers responsibility. -The OP is indicating they have lost faith in the vehicle. Just how substantial the failure is does need to be established regardless but the OP again seems to have lost faith in the dealer so a third party assessor is the likely path I can see a path that would leave everybody the least amount out of sorts and out of pocket. Ie --Im not happy with this vehicle give me another one.
curlcrown,
Nov 26, 12:14pm
In either case the car should be sent back to the dealer as soon as practical for assessment. I'm not saying that the buyer should not reject the vehicle, just not quite yet. If the dealer can repair within a reasonable time then it could be a happy out come, the dealer may also have a similar car to give them as you alluded to. I think the owner needs to have a calm and polite conversation with the owner of the dealership.
cpnnz,
Nov 27, 2:21pm
You did purchase the extended warranty with your own money, so I think you should claim as it's an unforseen sudden failure - that's the point of the coverage. I'd be surprised if the dealer would not help with the excess and any excluded amounts. Was the start date of the extended warranty the car purchase date?
muppet_slayer,
Nov 27, 2:36pm
The cars clearly a LEMON! get rid of it!
kazbanz,
Nov 27, 3:06pm
But why should OP need to claim unless the dealer has gone bust?
tygertung,
Nov 27, 3:16pm
I can't see why the dealer should not repair the vehicle under their obligations as part of the Consumer Guarentees Act, just because the customer has bought an extended warranty, with their own money.
curlcrown,
Nov 27, 3:45pm
The only thing that will achieved by not claiming is to stick it to the dealer. It won't cost the buyer anything if the dealer covers excess, fluids if need be etc. The other way to look at it is why not make the warranty company pay, they charged to take on the risk and usually they come out better off, that is their business model.
msigg,
Nov 27, 5:31pm
With most circumstances you can only have cover by one company. I would call your insurance company and ask them about the situation, they are the ones that will or will not repair, or will tell you your cover start after the warranty period or not, either way they will know how to deal with this. Talk to the experts and the ones paying the bill.Good luck.
tgray,
Nov 27, 6:14pm
Just a thought though. if they fixed it or paid for your excess on your insurance you took out, would you be happy keeping it? Do you really want to reject it?
samthesituation,
Nov 28, 2:08pm
Not really, for three reasons.
1) The extended warranty has a term that if anything is claimed on it, it cannot be transferred to another private owner. Therefore, even if the vehicle is repaired under the extended warranty with dealer paying excess/consumables I'm left in a "diminished" situation because my extended warranty cannot be transferred to a future owner (which is why if it's to be repaired it should be entirely under the auspices of the dealer warranty IMO, so I don't lose out in this regard).
2) I bought a car with a 3 month dealer warranty and a 36 month extended warranty. The dealer is now effectively claiming that there is only a 36 month warranty (I don't see paying any excess on an extended warranty as being the same as offering a warranty of your own). If they aren't going to provide their 3 month warranty, then I have been sold something to different to what I paid for.
3) Because the vehicle has failed twice in two months (with one of those faults being so serious in nature as to require transport home on a flat bed etc) it is clearly not durable and of acceptable quality. Even if it were fixed, I don't want it back. I'm not convinced that I won't be back in this scenario in another 1-2 months time.
tgray,
Nov 28, 5:00pm
Any more updates? Have you rejected it in writing yet?
samthesituation,
Nov 28, 5:35pm
Unfortunately, car still hasn't been transported back yet (AA are sorting, but due it requiring a car transporter and not just a tow truck because of ~500km distance, it's taken longer than expected - been just over a week).
It's due in to the mechanic who will be inspecting early next week.
However, I have said via email to the dealer that I want to reject the vehicle based on its unacceptable reliability to date (firstly throwing an error with the throttle body 12hrs after collection, which took 5 weeks to fix, and then secondly the fact that it broke down in such a spectacular fashion 9 weeks after purchase - I've calculated that of now ~10 weeks of ownership, it has spent only 4 without any kind of fault/error).
They replied that they cannot accept the rejection until it's inspected (which seems fair enough, I just wanted to set out my position early that the vehicle clearly isn't of acceptable quality) and that we have found an arrangement that works for both myself and them.
From earlier emails, the view they have clearly seems to be to get it repaired under extended warranty despite them placing a 3 month warranty on it.
I will update here once I learn more. My view is that once the vehicle is inspected, I will write a proper letter formally rejecting it (unless there is some minor issue, which seems unlikely based on my research, what the attendant AA mechanic said and initial conversation with the inspection agent).
As muppet_slayer says above, the car is a lemon based on its track record to date, and I don't want to spend months playing whack a mole fixing problems on it.
tygertung,
Nov 29, 8:10am
Surely the extended warranty should only kick in once the 3 month warranty runs out. Stands to reason.
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