[cyam]

Has anyone had good experiences with extended car warranties in Australia? I have had them in the past in the US on high end cars - I extended the new car warranty before it expired, and if you pick the right one they are good.

My 2020 M340i BMW warranty will expire in June.

Have looked at Eric with their "5 star" version. It seems ok but I noticed a lot of exclusions that are worded quite loosely. Which means they can get of things if they want. They charge around $4500 for 3 years -so $1500/year - I'd say it only takes one or two things to go wrong and you'll be close to covering it.

Anyone had good real-world experiences and recommend a used car warranty? Or is it better to pocket the $$ and hope you don't spend more in repairs?

[nm2003]

Originally Posted by cyam

Has anyone had good experiences with extended car warranties in Australia? I have had them in the past in the US on high end cars - I extended the new car warranty before it expired, and if you pick the right one they are good.

My 2020 M340i BMW warranty will expire in June.

Have looked at Eric with their "5 star" version. It seems ok but I noticed a lot of exclusions that are worded quite loosely. Which means they can get of things if they want. They charge around $4500 for 3 years -so $1500/year - I'd say it only takes one or two things to go wrong and you'll be close to covering it.

Anyone had good real-world experiences and recommend a used car warranty? Or is it better to pocket the $$ and hope you don't spend more in repairs?

Most (if not all) of these extended warranties are not worth the price you pay.

I did a quote request for a mythical 2020 M340i from one extended warranty company and after reading the T&Cs, there are too many exclusions, and one big one was that you needed to pay for the repair first, and then submit the repair bill to them before they consider the claim.

And according to the T&Cs, they only pay for the part that failed, not any other damage they failed part may have caused. eg. if a $10 part failed, that caused another $20k of damage, they will only reimburse the $10 for the part that failed.

Think of Extended Warranties like getting a 2nd insurance policy for your car, with a lot more ways they can get out of paying for things, when things go wrong.

Refer to the attachments for the crowd that quoted me.

Absolute - ICC - Pricelist - V2.0.pdf
ABSOLUTE - ICC - Brochure - V1.0.pdf
ABSOLUTE - ICC - V3.2 - TC.pdf

[nm2003]

From the extended warranty provider email:

Notice the sections regarding "Condition Report" and "Waiting Period" below:

"Regarding your vehicle: 2020 BMW 3 series G20 M340i with 80,000kms

This vehicle is classified as a Vehicle Category 2 and qualifies for Levels 1, 2, 3 or 4 given the age and kms (depending on your requirements) under the Absolute Extended Warranty Product (as per vehicle prerequisites in the attached price list).

If the vehicle is being purchased through a private seller, and not a Dealership, you will need to provide a Condition Report completed by a registered mechanic (available on page 20 or 21 of the attached Terms and Conditions), and there would be a 90 day wait period on making any claims on the policy.

Questions required:

Please see below for important information on the requirement of a Condition Report and Waiting Periods. Please also answer YES/NO to the below qualifying questions if you would like to take out either of these extended warranty products:

1. Do you understand that you need to have your vehicle/asset
serviced to maintain your warranty, with requirements detailed
within the terms and conditions of the warranty:

2. Do you understand that this extended warranty has some specific
exclusions listed in the terms and conditions:

3. Are you able to contribute to the repair cost of the vehicle/asset if
the failure is excluded under the warranty terms and conditions:

4. Are you able to contribute to the repair cost of the vehicle/asset if
the total cost exceeds the claim limit or amount approved:

5. Do you understand that you do not have to buy an extended
warranty:

CONDITION REPORT
You are required to complete a Condition Report:

• If the vehicle was purchased privately.
• If you are seeking to extend your current Manufacturer’s Warranty, which has less than 3 months before it’s end date.
• If you have owned the vehicle for some time and there is no current warranty on the vehicle in place.

If any of the above apply to you, you will need to obtain a vehicle Condition Report using the Integrity Condition Report Form (found in the Terms & Conditions attached, page 21). This form must be completed and signed off by a certified mechanic (eg include Redbook, RACV, or other State equivalents, or your local licensed and certified mechanic). The completed Condition Report will need to be submitted with your warranty insurance application.

*Please note that vehicles purchased through a licensed dealership do not require a Condition Report.

WAIT PERIODS
In some instances, there may be a 90 day wait period on all claims made, commencing the first day of your warranty cover. The 90-day waiting period is required when:

• You purchased the vehicle privately; or
• If you have 3 months or less remaining on your current Manufacturer’s Warranty; or
• There is no current manufacturer warranty on the vehicle.

*No waiting periods apply if the vehicle was purchased through a licensed dealership, or you have more than 3 months on the original Manufacturer’s warranty.

Please find attached the Product Disclosure Statement and Price List. If you would like to discuss a longer term of cover, I would be happy to work out a special deal for you."

PS. Extended Warranty providers are like Casinos. The Casino alway wins.
You will always loose money.