Need Some Advice on Extended Warranty

tonka on 20/05/2015 - 03:22

Bought a washing machine a couple years back from Good guys and took the extended warranty repair or replacement.

Machine has crapped itself and they can't get parts within a reasonable time.

Got a call from the local store saying they've received authority to give me a new machine for the equivalent of my original purchase price.

That credit comes no where near covering the price of an equivalent machine at their current prices. ie 7.5kg, it's about $300 short of the same brand and $200 short of the cheapest brand at that capacity.

Anyone dealt with this before?

General Discussion

Comments

  • scrimshaw on 20/05/2015 - 03:33
    +3

    http://www.thegoodguys.com.au/warranty

    Free replacement if we can't economically fix your product

    If your product is too expensive to repair, or not able to be repaired we’ll replace it with a product with similar function up to the value of the original purchase price.

    So exercise your rights:

    • said product must have the same capacity
    • said product must have similar functions
    • you shouldn't have to pay extra money to cover the deficit, since it has been promised that the replacement is free. If you had pay even a cent to get a replacement product, then the contract is broken.

    et cetera, et cetera.

    • tonka on 20/05/2015 - 03:39

      Yeah, this is where I'm stuck. One of these statements is untrue. Free replacement vs value of original purchase price.
      I haven't challenged them yet but I believe the 'value of the original purchase price' as in value should be measured by the goods purchased to negate inflation. Otherwise the replacement guarantee is just misleading.

    • tonka on 20/05/2015 - 03:41
      +1

      Cheers, I will stand my ground tomorrow knowing you have endorsed my perspective.

      • Settero on 20/05/2015 - 08:45
        -1

        your saying you paid x for your machine , and a equivalent replacement would cost x + 200-300 now and they are only offering you x in credit right ?
        i think this is perfectly fair and reasonable..
        the key is "up to the value of the original purchase price."
        it would be very very nice of them to give you the newer more expensive machine so tread carefully with how you approach it.

        • [Deactivated] on 20/05/2015 - 10:05
          +1

          But how much did OP pay for extended warranty? (which, in my opinion is ALWAYS a rort).

          It is not perfectly fair and reasonable.

          OP purchased a washing machine and extended warranty from the Good Guys.

          Washing machine has stopped working within warranty period.

          Good Guys must repair within reasonable time or replace the machine with a similar one. The fact that a similar washing machine now costs more is not relevant. You bought extended warranty for your washing machine, you did not purchase insurance on a dollar amount for the machine.

        • tonka on 20/05/2015 - 10:28

          @woolfenstein: paid $100 bucks for 3 years extended seemed reasonable for the described in home repair or replacement. I probably wouldn't have paid that much if I thought was just a roll of the dice for the purchase price.

        • Settero on 20/05/2015 - 10:29

          @woolfenstein:
          you agreed to the terms of the warranty…
          i think extended warranties are sketchy myself , but if someone gets one and does not read the terms… and then wants something more than the warranty provided… im sorry to say i side with what was agreed to…

          this is not what do you expect from a extended warranty , its what was agreed when the extended warranty was paid for.
          warranty are just like insurance.

          if i insure a object for x value , and it appreciates in value but i still only have x coverage , i can not expect my insurer to pay out x + appreciation.

          it may not be a popular opinion , but it has to be fair to both parties.

          this is assuming that the manufacturers warranty is over.

        • [Deactivated] on 20/05/2015 - 10:59
          +1

          @Settero: The extended warranty doesn't change your minimum entitlements under consumer law, it doesn't matter what the terms and conditions state.

          There is a huge difference between warranty and insurance.

        • [Deactivated] on 20/05/2015 - 11:16

          @tonka: Eh, they should at least take that $100 off your new machine if you have to pay for it right? (Haha, but I really hope you don't pay for it)…

          I hope this has changed your view on the value of extended warranties. The user rxjb points out why they are basically worthless, ACA or some other such ilk has even done stories on this. Then again, maybe I am biased, as I've yet to meet anyone who's had a smooth warranty claim… extended or otherwise… ;D

  • nocure on 20/05/2015 - 09:25
    +4

    Take it to fair trading if you dont get satisfaction….wouldn't be a Samsung front loader by any chance?

    • tonka on 20/05/2015 - 10:21

      Samsung top loader

      • nocure on 20/05/2015 - 11:49
        +2

        we updated our 20 year old simpson (still working) with a samsung and got the extended warranty…8 breakdowns in four years…absolute piece of sh!t.

        • zoinks on 20/05/2015 - 15:40
          +1

          Our Samsung front loader had one breakdown less than a year outside of warranty (cant remember the exact amount of months) so it went to the tip

  • msmhw on 20/05/2015 - 09:48

    May be try to ask for refund if they can't replace it for you totally free.

  • rxjb on 20/05/2015 - 10:28
    +1

    Statutory warranty. Would expect a washing machine to last at least 5 years. If Good Guys dont help, go after the manufacturer with a statutory warranty claim.

  • ukmark on 20/05/2015 - 10:33

    "What's an equivalent replacement?"

    An equivalent replacement is a replacement product that has the same or similar function (determined by us) to the product you originally purchased to a value not exceeding the purchase price of the original product. This is based on the products features, not the price you paid. You can be assured that the replacement you receive will be as good if not better than the original product.

    "What if you don't have an equivalent replacement to replace my product?"

    If we can’t supply you with an equivalent replacement product, we’ll provide you with a Gift Card from The Good Guys, to the value of your original product price, to buy an alternative product.

    Looks like they have this water tight for their extended warranty. This does not affect your statutory warranty though. How old is the machine? Probably the best outcome you can expect is a refund in cash, not gift cards. Sometimes though statutory warranty can vary the refund you get - based on age of the product. E.g. If the ruling is that a washing machine should last 8 years, and you have had 3 years use - you get a refund of 5/8 of your purchase price.

    I would probably just push for a refund and if they won't budge after you threaten statutory warranty, take the gift cards and buy a new machine. Not worth the hassle for $200-$300 to go through Fair trading, or your state's equivalent.

  • spackbace on 20/05/2015 - 10:53
    +3

    See what they can do on the price before you get too worried. Research that model, find the best price you possibly can, see what they'll do etc. Might only come down to $150 more, and in the scheme of things thats not a bad upgrade cost for a 3-5yo machine to get a brand new one!

    Please just talk to them, nicely, and see what they'll do for you if you keep your business with them (likelihood is that it will be store credit offered, as the extended warranty is bought through them, not through Samsung). The stores are all franchised, so nothing to say you cant take those gift cards elsewhere… leave that option till last when seriously haggling.

    So:
    1) Research prices of the equivalent machine that you want
    2) Tell them you will agree to the refund of the purchase price
    3) Oh, I'm looking at this model, saw you have it marked at $X, can you do something better for me?
    4) Oh is that all? I've seen it advertised 'here' for $Y, you sure that's all you can do?
    5) (If price is better) Ok take off another $50 and I'll take it, saves me going to the Good Guys closer to home/work
    (If price is worse) Ok no worries I'll go check with the Good Guys closer to home/work

    • [Deactivated] on 20/05/2015 - 11:25
      +2

      +1 for talking nicely; I'll go out of my way to help out Sally Smiles and do minimum requirement for Shitey Sam.

      • tonka on 20/05/2015 - 18:12
        +1

        Unfortunately you are unique. I am always polite and try to engage people and not all the time but maybe 85% all I get is scripted response 'computer says go away'.
        Only after you insist and put some steel in the voice do you end up getting anything close to customer service.

        To the 15% of people doing a good job and being helpful you are awesome.

  • tonka on 20/05/2015 - 15:12

    Insurance company wouldn't budge. So I get a store credit $300 less than what it will cost me to get another machine.

    Gonna chase the manufacturers statutory warranty.

    As far as I can tell the extended warranty is simply gambling on what timeframe the product will breakdown.

    • spackbace on 20/05/2015 - 15:17

      Gonna chase the manufacturers statutory warranty.

      I'd say since you accepted the offer, you won't be able to achieve anything now

  • 1bug on 01/06/2015 - 21:13

    You should have ignored the extended warranty and gone for your rights under Consumer Guarantees.

    From page 12 of the Guide (PDF) - http://www.accc.gov.au/publications/consumer-guarantees-a-gu…

    Extended warranties
    Suppliers or manufacturers may offer extended warranties to provide additional protection or to lengthen the coverage of their manufacturer’s warranty. You will normally have to pay extra for these warranties when you make the purchase.

    It is important to understand that these warranties do not cancel your right to make claims under the consumer guarantees.

    • tonka on 01/06/2015 - 22:21
      +2

      Thanks, that's what I did thanks to some of the advice here. Finally paid off today and machine was fixed under manufacturers warranty.

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