Car Extended Warranty & Servicing at Dealerships

Hi All. Long time lurker 1st time poster!

I recently bought a 3yr old VW Passat privately which still has 2yrs of extended warranty to run on it. Had this warranty transferred into my name, so all good on that front.
The conditions for the warranty state that you have to service the vehicle at a VW dealership to maintain warranty status, although it doesnt say antyhing more specific.

Wanted to ask if anyone here knows - is it important exactly when you get this service performed? The next service is meant to be the 45,000km service and my car is at 42,000km right now. The sticker (from a VW dealer) on the window says next service is on 25th July 2017 and/or 52,000km, and my car computer tells me the service is due in 2 days. Which is right?! If i dont service before any of these particular dates, would VW have grounds to void my extended warranty? Can i be a little late?
I'd very much rather service at a cheap local place, but looks like i'm stuck with pricey dealer servicing till the warranty runs out.

thanks for any insights!

Comments

  • If it's the dealer extended warranty check that it transfers over to you. Pretty sure mine (non VW) only applies to the original owner.

  • +2

    In dealer speak you have the Harrier handcuffs. With the dealer extended warranties you have to have servicing done at the dealer if purchase and it needs to be done ON TIME, meaning you can't be a week late, over by 2000KM, or any other excuse or they will void the warranty.
    Good news is that most of these warranties don't cover full costs of repairs, e.g: transmissions are usually limited to $1000-2000 'assistance' so if your tranny costs $5000 you're up for the rest. This means you can get it serviced anywhere you want, your choice if you think the car will developed a fault and how much you will have to cover the repair vs how much you save at an independent mechanic.

  • I'm just recalling this from memory, so I could be wrong.

    Many years ago, there was a fuss about whether cars needed to be serviced by the actual dealers for the Warranty to be valid vs having it serviced at an authorised servicing mechanic.

    If I remember correctly, the Warranty can only be void if the dealer can show that a the fault that Warranty is being claimed for was caused by a non-dealer servicing mechanic.

    For example, if a windscreen wiper was replaced by a non-dealer service and the transmission conked out later on, then the dealer can't deny warranty based on the fact that the car wasn't serviced by them.

    I'm not sure if the extended warranty is treated the same as the original warranty, so you may want to check clarify those terms and conditions.

    Happy for someone to correct my understanding.

    • +1

      Manufacturer Warranty can not be voided by law if you service car using another mechanic
      Dealer extended warranty can require you to have car serviced by the dealer to maintain the warranty, and it almost always requires the car be serviced by the selling dealer.

      https://www.youtube.com/watch?v=uNyGUqrKBjQ
      Watch the part regarding new cars where it covers the warranty rules (it also points out extended warranty is almost never transferable)

      • Dealer extended warranty is more like an insurance policy. They use lots of fine print to wriggle out of claims. Read and know your fine print if you want to continue with your warranty.

        I've purchased a couple of those dealer warranty extensions and it has paid off, using a local dealer. Our latest car got a 'free' warranty extension, but the dealer was too far away to bother getting the car serviced by them. The distance to the dealer also meant we didn't buy any extension and gambled on the car being OK. So far, so good.

  • +2

    please check the PDS and contact the company involved, there's a good chance that they will do anything no to honor the warranty.

    http://www.smh.com.au/national/extended-warranties-useless-a…

    http://consumeraction.org.au/almost-completely-worthless-use…

    • I would second this.

      I would firstly read the PDS of their 3rd Party Insurance provider (Yes, an external insurance is used) about all the terms and conditions, what is covered and is not covered.

      Then factor the servicing costs to approximate issues that you may have an what can the insurance provide.
      You can ask in advance the cost of a minor an major service and factor changes of cost over time ~ +5% PA.

      Then look at what is covered with the insurance (Like what @Test Tickles said which is correct) which is minuscule. The insurance is designed to take and not give much back, and when you claim .. ummming and arring to pay you.

      Your car is practically new as 45K Km is really nothing for a 3 year old car.

      IMO, I would give the dealer the boot and go to a reputable mechanic and save heaps.

      Cheers

    • +1

      https://www.youtube.com/watch?v=uNyGUqrKBjQ

      Was recently covered by our friends at the checkout also

  • +1

    READ THE CONTRACT

  • +2

    Definitely double check that the warranty transferred to you. If it's now in the "extended warranty" period there may be different restrictions on it.

    My VW dealer lied through their teeth to get me to buy the extended warranty, and then took 5 weeks and 4 emails from me (they don't return phone calls evidently) to actually initiate it. Apart from quoting me inconsistent random prices each time I asked about it, they claimed flat out that it was just an extension of the factory VW warranty. Well later I found out it's actually a 3rd party warranty which has nothing to do with VW and has certain limitations. They denied any wrong doing ofcourse and the manager insisted "this is not how my staff conduct business!" … Avoid Berwick Volkswagen.

  • If it's an extended Manufacturer Warranty you can get it serviced anywhere by a qualified mechanic. Just make sure you follow the service book and have done by either kms or date (whichever comes first). Don't use the window sticker or car computer to determine when you should do it.

    If it's an extended Dealer Warranty then it's probably not worth the paper it's written on - so you can get it serviced anywhere.

  • Thanks for your replies, guys.
    Just checked the paperwork, it's VW manufacturers extended warranty, underwritten by Allianz.
    It's definitely in my name, i paid a transfer fee to move it over and have the paperwork with my name on it.
    Looks like they'll fix any reasonable defect, as per policy wording:

    "If, during the period of insurance, your vehicle requires
    repair or the replacement of component(s) being
    component(s) which would have normally been
    covered by the original manufacturers new vehicle
    warranty if it had not expired, excluding normal wear,
    we will, at our option, either:
    a. repair; or
    b. ensure that the authorised dealers replace the
    parts requiring repair or replacement with
    Volkswagen Geniune Parts"

    It does claim that i must service at a VW authorised centre "in a timely manner according to manufacturer recommendations". Unfortunately, i believe i'm currently 2 days late for this (just moved house, was too busy to organise a service). I might go to an authorised service centre and get them to sign a letter which says my warranty will still be valid, otherwise i'd just take it to a regular mechanic.

    • +2

      2 days late would be within a 'timely manner' in most situations, unless you've done several thousand kms in those two extra days.

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