My parents are trying to get a used car and they offered the Integrity Extended Warranty backed by Wesfamers. They said its unlimited claims, unlimited kms, transferable, nation wide and is identical to a manufacturer warranty. I find it really suspicious. Another important factor they mentioned was, after 2017, the government stepped in to regulate this mess, so it is worth getting now. There is really not enough information online, and I would only trust the Ozbargain community on this. Is used car warranty right now worth getting? Has anyone dealt with Integrity? I know they were bad, but what about now? It is more expensive than the others for sure. Thank you so much.
Is Integrity Extended Warranty Worth Getting?
Exorcist on 21/02/2018 - 21:24
Comments
How much is this warranty? Usually it's not worth it.
All well and good until there's something wrong, then they don't know you!I don't remember the exact price as I wasn't paying attention. But it was about 1k per year, seems expensive to me. They said the warranty polices changed since the government stepped in, so I assumed it is something useful now? But I doubt it.
I honestly would be really doubtful about what they tell you. When your car is broken down, you're not gonna have time to argue with them and wait months for due process.
How likely is there going to be something wrong that costs over $1000 to fix in the first year? Or something that costs over $2000 in the second year to fix?
The only real thing would be the transmission. When that goes wrong, you're better off getting a new car. Once they open it and put it back together, the car never feels the same.
Extended warranties are typically not worth it in the long or short run. The standard manufacturer warranty is all you need. Even then, if you report a fault to them they might entertain the idea of trying to solve it, but can often end with "it's a common issue, only a mild inconvenience/noise that doesn't harm any components". With cars there is a lot that they can and will deem as "wear and tear" to get out of replacing things. Don't forget that if there's a major issue, it usually results in a recall. So you won't be left high and dry.
That fuel filter that should have lasted you 10+ years?
Well, maybe you just drove lots, or clogged it up with low quality fuel/other contaminants.Gearbox dead?
You change gears a lot, have bad habits, etc.You see where I'm going here.
Save the money. If/when things go wrong with the car, deal with them as they come. I see no point in paying for something that you can never actually get a valid claim on.
the car was sold to the dealer when the manufacturer warranty expired. Would it be too expensive to repair if say the engine broke down?
Might be more useful to tell us the year, make, and model of the car.
Any second hand car that you are seriously considering buying, you should always get checked out by an independent mechanic. For example, don't let the private seller talk you into them taking it to their uncle who likes servicing cars on the weekend to give you a full breakdown of the issues.
If the car is a Toyota, tell them you want them to take it to Toyota to get a pre-purchase inspection done, at your own cost. If they deny this, they either don't want to sell the car badly enough or have something to hide from you that they're worried Toyota will find and tell you about.The pre-purchase inspections are usually less than $100. They often don't report on paint or interior quality, just mechanical things. So make sure you're okay with the aesthetics before you get the inspection done.
It is an old Merc from late 2014, E200 I think. I was afraid that my dad will be tricked into buying the warranty since they were really really pushy. They said it will cost way more than that to repair things like engine and transmission. I don't know about cars myself but I do know the great Ozbargain community.
old merc from late 2014
That's not really "old". You can call it old when it's 7-10+ years. =]
I highly doubt you would experience engine or transmission failures before the 10 year old mark. As long as you keep on top of the scheduled servicing, report any new noises or issues when they come up and get it all dealt with before it snowballs into $$$$ bills, then you'll be sweet. Buying a relatively new car like this means you save on the "brand new" costs, and still reap most of the "new car" benefits at a lower price.
I would strongly advise you to just get the car, forget about the extended warranty entirely. I've never bought a second hand car from a dealership before, but if you can get the car checked over by another mechanic (not their in house mechanic) then do that before committing.
Alternatively, don't buy a European car at all. =P
@hamsummation:
If you are already being warned that the engine and transmission needs to be repaired, I'd be walking away or using that as a bargaining chip."So it cost a lot to fix the engine and gearbox, and from the sounds of it, it can happen. I feel like the current price isn't worth the difference of a brand new car…"
@rloos: Everything you said was just spot on. They said it's OLD and needs "almost identical manufacturer warranty". They offered a discounted inspection from "an independent mechanic". It is clearer now haha
"So it cost a lot to fix the engine and gearbox, and from the sounds of it, it can happen. I feel like the current price isn't worth the difference of a brand new car…"
“Good point sir. Let me show you this 2018 model”
I have just lodged my NSW Fair Trading complaint over these guys …
The second hand car dealer gave me the 'today only' line … more than 50% discount on Integrity Extended Warranty … here, sign this !!
Basic story is, Integrity Car Care will DECLINE each and every claim you attempt to make, if you haven't had the car serviced at 10,000 kms WHETHER IT NEEDS IT OR NOT !!
My BMW was serviced at 14,000 kms
Alternator packed up, and car towed to NRMA recommended auto-electrician. I have waisted an entire week, stuffing around with Integrity's 'assessment' of my claim. I use my car for business, and I have lost MORE than I paid for their Extended Warranty.
Waiting on NSW Fair Trading to decide what's fair …. IT'S JUST NOT WORTH IT !!! DO NOT PURCHASE THIS PRODUCT FROM INTEGRITY !!!
if you haven't had the car serviced at 10,000 kms WHETHER IT NEEDS IT OR NOT !!
FYI service requirements are always in the terms for any brand of extended warranty
And that’s where you need to read the fine print. If the ‘warranty’ states 10,000km/6month intervals but the manufacture say 15,000/12months you still need to have it done at 10,000 or 6months because it’s a condition for the ‘warranty’.
Yes, they will likely give you a little leeway with the 10k, but not 40%, more like 10%.
Either way, if you want to maintain the ‘warranty’ meet the conditions because it’s not really a warranty but an insurance policy.
Lack of Integrity
Buyer Beware!
Check out the negative reviews for an extended car warranty with Integrity Car Care.
Note: Ignore the fake positive reviews:
https://www.productreview.com.au/listings/integrity-extended…Anyone who has been scammed by Integrity Car Care’s extended car warranty, join this Facebook group to educate others to beware of this extended car warranty scam:
https://www.facebook.com/groups/996512364742302/?ref=share_g…
There is not a single extended warranty that I can think of that is worth getting.
A dealer sold second hand car has dealership warranty. Trying to get the dealer and/or insurer to pay for major warranty work requires some serious strong arming. They'll try (and likely succeed) at attributing all claims to either normal wear and tear, misuse or negligence.
And of course the per-item limit will be well below the real repair / replace cost for any failed components. Like $300 for the gearbox.
A dealer sold second hand car has dealership warranty.
Maximum length - 3 months or 5,000km, whichever comes first
And that's not a 'bumper to bumper' warranty. Doesn't even cover a battery if it's flat.
True but extended warranty may not help either.
Just 2c. It's not hard to make a lemon run 3 months/5,000kms.
There's a whole race about it. Super fun.
It's not hard to make a lemon run 3 months/5,000kms.
I know, but it's deceptive to say that every second hand car has a warranty, without explaining further. False sense of confidence there.
Statutory warranties are pretty clear cut, with little room for error. Barely worth the paper they're written on. It's better for OP to drive out thinking he basically has no warranty (except for major engine components), than to think he has some factory warranty.
I usually ignore buying extended warranties. The theory being if you can afford to self insure it is better to do this. From my perspective travel insurance is to cover me for health expenses overseas, everything else I could deal with myself. Any cancellation, baggage, etc is just a bonus and I will look for the cheapest insurance that has a big health component.
I did buy extended warranty for a fridge once and I would've used it because it broke in the fifth year; but the manufacturer replaced it for free anyway because there was a fault with the model.
For the car warranty find out "exactly" what this would cover - there may be a lot of "wear and tear" clauses that will make it useless.
Doubt it's unlimited claims, most of these there is a $$ limit per claim, and $$ claim total over the life of the warranty.
Simple option would be to get the PDS, or at least read the brochure.
On a 4+ year old Merc I'd actually say this would be a tough choice. If things go wrong on those they can get expensive. On a 4yo Corolla, meh it's gonna keep going for years, but on a Merc I'd actually suggest you consider it.
But don't pay asking price, say you'll take it at 50% off and see if they get close.
It's not a warranty, it is an insurance policy. You pay a premium and make a claim if there is a mechanical issue that is in the specified categories.
IMO, not normally worth it. Out of 4 cars purchased at a dealer, I've had a couple of items fixed under this type of policy though and one thing that I still had to pay for. One fix was a head replacement, and they aren't cheap or easy to DIY.
I don't think I would purchase one again.
$1,000 per year? I thought they were cheaper than that. But regardless, the principle is the same …..
Car dealers push hard to sell these warranties so they make a commission. So the organisation providing the warranty gets somewhat less than the premium paid. Then, that provider needs to pay for all their overheads and taxes out of that net premium, and still make a profit. How much do you think is allocated to pay for claims?
They will have specialists working out how to legally delay and deny claims. The contract wording will have many loopholes built in, as most people don't read or understand them. Sometimes a consumer will benefit but in most cases it will be a poor financial result.
Friend got conned into buying an extended warranty. Cost a fortune for the premium.
Went to claim for a cracked head on vehicle and the company had that many clauses why they didn't have to pay that it was impossible to get a cent out of them. Ended up costing friend upwards of $4k to get vehicle fixed plus it was off the road until they paid for motor damage out of their own pocket.
Car dealerships get 50% commission and more for selling these worthless policies, steer clear unless you have money to burn.
Terrible companies I have ever dealt with,will not recommend to anyone even though this would be the last company left on this planet. They refused my claim on the first instance saying we don't cover anything that has been fixed by my mechanic. After that, I gave them a call and they said to me the same thing regarding that invoice. Then I went to my dealer and had a word with them and when they gave them a call they said they will do it for my dealer as my dealer is giving them business and integrity company will do it for him just for the future business.I would like to advise everyone not to take their extended warranty. There are so many other companies available in the market even though if your dealer pushes you to take their minimum plan.
they refused my claim on the first instance saying we don't cover anything that has been fixed by my mechanic.
The same thing applies to all warantees though… If you sent your Samsung phone to a random unauthorised tech to open and fix something, that voids the waranty. It's unreasonable to expect them to be responsible to fix a third parties doing.
Stay away from this company - Integrity Car Care, also known as iWarranty. I recently had a car issue covered by their warranty, and the experience has been a nightmare. They've done everything possible to avoid their responsibility, looking for loopholes to reject the claim.
I filed a formal complaint with their dispute team, and a week later, they offered to pay for an aftermarket part that won't restore my car to its original condition. Unacceptable. I've now escalated this to the Office of Fair Trading.
I can't stress this enough – they are incredibly shady. Awful to deal with, and their customer service is terrible. Expect nothing but headaches if you choose to do business with them.
Yesterday, I went to do car maintenance as usual, mechanic found the engine mount needs to be replaced. Integrity authorized car repairer submitted all the required documents to them, with no surprising, Integrity rejected it again (i have been rejected 2 times before with different issues, integrity giving the different rejection reasons). This time, I was told engine mount belongs to Rubbers (excluded part), which supports the suspension system. To be fair & honest, in the exclusion clauses, Integrity does not state it clearly that under Rubbers, what exactly parts are excluded. Integrity tries the best to avoid any claims and take advantage of innocent warranty buyers. When we need the warranty, it’s covered with nothing. PLEASE BE CAREFUL BUYING THIS WARRANTY, MAKE SURE YOU FULLY UNDERSTAND WHAT EXACTLY EXCLUDED.
After market car warranties are not worth the paper they are written on, period.
no