Isn’t a mechanical warranty on a car just a waste of money?

The Finance Lady - Isn’t a mechanical warranty on a car just a waste of money?

Isn’t a mechanical warranty on a car just a waste of money?

I’ve been in the car industry for 20 years now, and I tell every friend and family member ALWAYS get a mechanical warranty with a vehicle purchase.

I read research from an insurance company years ago that said you are actually 17 times more likely to claim on a mechanical warranty for a car, than you ever are to claim on house or contents insurance. We’d never dream of not insuring our house, but think our car, with its hundreds of moving pieces, will be fine!

If you purchase a used car from a registered motor vehicle dealer, the Consumer Guarantees Act (CGA) applies ONLY if you are purchasing as a private person. If you purchase through your business name, the CGA does not apply. And, due to a law change a few years ago, there is no longer legally any time frame associated with a dealers obligations under CGA. Instead “what is regarded as fair and reasonable” applies. The difficulty here is, what a client regards as fair and reasonable, a dealer may not. Hence the Disputes Tribunal….   The majority of registered dealers are very honourable; but laws without time frames can be frustrating and hard for some to comprehend on both sides of the fence.

 

A mechanical warranty can be financed in your finance contract, and, depending on the term, may only cost you an extra $1 per day in repayments. At The Finance Lady we can supply you mechanical warranties for any year/make/model/km of car (within reason) through our excellent relationship with long term warranty provider Autosure.