Extended Car Warranty Question

So why did you waste money on this warranty? You're covered anyway by CGA from dealers.
If you can't come to an agreement, and you must let the dealer have the chance to fix it, you can take it to Motor Vehicle Disputes.

The primary benefit of the extended warranty is to reduce the impact of the CGA on the dealer. ironic that buyers pay for it.

Both the extended warranty and the 3 months warranty appear to be irrelevant in this case, based on what the buyer has told us, the vehicle is not of acceptable quality.

The fact that is needed to be towed does not necessarily mean it has suffered a serious fault. Minor failures can also result in the car being unable to drive, ie/ sensors, leads, electrical issues etc and some can be easily remedied.
It will be interesting to hear what the actual failure was from the OP as it has a direct bearing as to whether there is a strong case or not for rejection.

I haven't ploughed through the comments but is this a Japanese vehicle?

Offering a 3 month warranty means absolutely nothing and is misleading which may be breaking the Fair Trading Act. It implies that after 3 months your on your own and should then claim through your extended warranty rather than go back to the dealer.
Yes the CGA would almost always last longer than 3 months, unless perhaps you bought a very old car with very high K's for next to nothing and your expectations as far as durability was extremely limited.

Nope--that's not how they arem structured--Buyer has three years cover from date of purchase. -besides which a 3 month warranty is contracting out of the CGA etc.

You make two points.The first I don't agree with A MBI is always structured to start at purchase date so arguably the first 2-12 months (depending ion the specifics of the vehicle) are a waste of money because you are covered under the CGA etc. BUT its the time after that where the MBI in effect should pay for itself if you have a mechanical failure. That said with the financial state of play for dealers currently I'd be taking a MBI to protect myself in case a dealer shuts up shop.
Your second point I agree with. Based on the OP's statement the vehicle is not of acceptable quality

Sam--did you read my post ?
1) we need the Year/make/model /miles to be certain the advice we are offering is correct in your specific case.Price paid may also be relevant
2) You are FULLY covered under the CGA/SOGA so the dealer warranty or any extended warranty has zero value at this point in time.
I must note to avoid being called a hypocrite that we put 6 months dealer warranty on all cars we sell but we clearly explain that's above and beyond CGA in no way offered as an alternative,.
3) A rejection of a vehicle either a yes I reject it or No I don't. Its not conditional. So you need to be clear that regardless of what is found you reject the vehicle.
4) You need to be clear with the dealer that you do not give them permission to utilise the MBI you purchased. I would suggest you make that clear in the letter of rejection.
5) further to 4 YOU own the MBI so if you go down this path I'd suggest contacting the MBI company and making it clear you do not want to claim for something that the dealer should be covering.
6) All transportation costs for the vehicle are initially your responsibility but often they are awarded to you by the MVDT.

ALL THAT SAID. Although in my experience the advice I'm offering is LEGALLY correct id also suggest there's an alternative you may want to consider.
Make an appointment with the "person in charge" -DP or the manager.
Make it clear that you do not want the car back but you are prepared to be reasonable. Have them supply you another car to the same value with the same MBI etc included. Make it clear you don't care what happens to the old car regarding repair etc but that you are wanting nothing more to do with it and expect to contribute nothing financially.
It gets a bit more complicated if there is finance involved but its possible to sort it.
This gives the dealer an out that is likely to be palatable.
if they say no then state. "I then have no alternative but to reject the vehicle"

3 questions re the above quote:

1. What was the 'moderate fault' the dealer took over a month to fix 12 hours after you bought it?
2. Did they take the car back and have it for over a month while they fixed it or did you keep it and drive it about for that time?
3. If they took it back 12 hours after purchase, did they give you a loan car for that month or were you without a car?

I feel these are all relevant questions as far as your intent to reject it.

1. It was a failure of some component of the throttle body (entire throttle body required replacing).
2. No, I kept the vehicle and used on occasion as the mechanic that they use informed that the vehicle would be ok to drive around town while awaiting repair.
3. No loan car provided as I kept the car during this time.

The first fault with the car wasn't particularly serious in nature (more just concerning insomuch that it occurred so soon after purchase, and it took over a month to get sorted).

It's more that the combination of this plus the second, more serious fault (rendering the vehicle totally inoperable) in such a short space of time leads me to believe that it is a "lemon".

For what it's worth, the vehicle is a 2007 Volkswagen Touareg v6, 130k kms, purchased for $11000 incl 3 year warranty and installation of an aftermarket stereo/reverse camera. I believe it's a Japanese import originally as well, and the dealer took it as a trade-in on another vehicle (in some respects I am sympathetic to the dealer; they took a trade in in order to win some business, and they took a punt on it being a reliable car - I wish for all parties it had worked out that way)

I don't expect a 2007 VW with over 100k kms to last forever. To another comment above, this is why I took out the extended warranty. Had this problem occurred even 12 months after purchase, I wouldn't be attempting to reject the vehicle and wouldn't expect the dealer to contribute.

However, I do expect more than 2 months service out of it, and am sure most reasonable consumers would as well. I also expect that if I am given a 3 month warranty, that I get to benefit from that too.

And thats the best advice anyone can give.!

I must have BO because OP is ignoring me .--ahh well horse/water.

Sorry I thought I replied up above with car make/model etc? I'm not so au fait with Trademe comments.

Your advice is excellent and I'll take that pathway.

I'll be rejecting as per your advice.