Warranty question
Discussion
I’m after a bit of advice if possible.
Long story short(ish): I purchased a 2005 A3 3.2 run around earlier on in the year, when I was between cars. I paid fair market price and the dealer threw in a third party warranty with the car (max £1500 liability but included things like recovery, car hire, etc), indicating that it was as good as they get. I tried negotiating the price down without the warranty but he was insistent it had to be part of the deal.
Anyway, in very short order the car developed a significant knocking (within a few days) I contacted the dealer and he asked that I open a claim with the warranty company which I done. Their advice was to get it to a garage and checked over. I arranged to take it into the local Audi main dealer, who diagnosed cam chain stretch – engine and gearbox out job circa £3-£4k. The warranty company at this point refused the claim on the basis on it not being mechanical failure, but preventative.
After a lot of discussion with the seller, the car was recovered from Audi to a local to the selling dealer Audi independent garage. The car was reported to me as fixed, although when I travelled to collect the car, it clearly wasn’t and the problem was still there although the dealer did have receipts for the work done. (The cam chain replacement is supposed to be a mare of a job so not surprised that it wasn’t done properly, I had this concern with their “specialist†doing it as they looked more like a general all marques spanner monkey, rather than VAG specialist.)
After taking it for a quick test drive, I formally rejected the car and requested a full refund under the SOGA, after a bit of firm discussion this was agreed and confirmed by email the following day with the dealer. I supplied the log book, history and spare key, he immediately refunded by bank transfer. The arrangement was that the full purchase price and a small (£150) contribution towards my costs (which amounted to over £850 for the cost of the Audi diagnostic, car hire, recovery of the car originally and trains to and from him). What was also agreed is that if the dealer did manage to get any money from the warranty company, this would be shared with me - recorded in the agreement of full and final settlement email.
Fast forward 10 weeks, out of the blue I get a letter from the warranty company accompanied by a cheque for £500 in settlement of my claim, made out to me on my policy number. I have to be honest, I didn’t expect to get anything so was pleasantly surprised and duly cashed the cheque.
Fast forward a further 4 weeks (yesterday afternoon) and I get a missed call and voicemail from the warranty company, indicating that there has been a processing error and the cheque should not be issued to me and can I send a refund.
Before I go back to them, I just wondered if anyone has a view on where I stand?
Long story short(ish): I purchased a 2005 A3 3.2 run around earlier on in the year, when I was between cars. I paid fair market price and the dealer threw in a third party warranty with the car (max £1500 liability but included things like recovery, car hire, etc), indicating that it was as good as they get. I tried negotiating the price down without the warranty but he was insistent it had to be part of the deal.
Anyway, in very short order the car developed a significant knocking (within a few days) I contacted the dealer and he asked that I open a claim with the warranty company which I done. Their advice was to get it to a garage and checked over. I arranged to take it into the local Audi main dealer, who diagnosed cam chain stretch – engine and gearbox out job circa £3-£4k. The warranty company at this point refused the claim on the basis on it not being mechanical failure, but preventative.
After a lot of discussion with the seller, the car was recovered from Audi to a local to the selling dealer Audi independent garage. The car was reported to me as fixed, although when I travelled to collect the car, it clearly wasn’t and the problem was still there although the dealer did have receipts for the work done. (The cam chain replacement is supposed to be a mare of a job so not surprised that it wasn’t done properly, I had this concern with their “specialist†doing it as they looked more like a general all marques spanner monkey, rather than VAG specialist.)
After taking it for a quick test drive, I formally rejected the car and requested a full refund under the SOGA, after a bit of firm discussion this was agreed and confirmed by email the following day with the dealer. I supplied the log book, history and spare key, he immediately refunded by bank transfer. The arrangement was that the full purchase price and a small (£150) contribution towards my costs (which amounted to over £850 for the cost of the Audi diagnostic, car hire, recovery of the car originally and trains to and from him). What was also agreed is that if the dealer did manage to get any money from the warranty company, this would be shared with me - recorded in the agreement of full and final settlement email.
Fast forward 10 weeks, out of the blue I get a letter from the warranty company accompanied by a cheque for £500 in settlement of my claim, made out to me on my policy number. I have to be honest, I didn’t expect to get anything so was pleasantly surprised and duly cashed the cheque.
Fast forward a further 4 weeks (yesterday afternoon) and I get a missed call and voicemail from the warranty company, indicating that there has been a processing error and the cheque should not be issued to me and can I send a refund.
Before I go back to them, I just wondered if anyone has a view on where I stand?
Edited by VeegasS4 on Wednesday 17th December 08:59
REALIST123 said:
Sounds like you knowingly cashed a cheque that you weren't entitled to.
The right thing, both morally and to avoid trouble, would be to pay them back.
He lodged a claim, warranty company dodged it but then he receives a £500 contribution towards his £850 costs from them? fThe right thing, both morally and to avoid trouble, would be to pay them back.
k 'em, I'd say.thanks for the replies so far.
I suppose to clarify:
My suspicion is that the dealer has been on at the warranty company ever since for a refund to him for the cost of repairs, and they’ve relented and he wanted the payment out to him. As the warranty policy was in my name, they automatically sent it out to me.
I could be a bit of an arse with it; the company is regulated by the FCA, so I’d be really interested to hear how they were going to make a payment to a third party when I, as policy holder had not expressly authorised this.
Some of the mitigating factors are: with a full and total refund, you could argue that the cost of the policy had been fully covered by the dealer. Also I did agree with the dealer that if they managed to get any money from the warranty this would be shared so he could be entitled to all or some of it.
I suppose from my point of view, I’m annoyed that the dealer has not notified me that they have achieved a payment out and would he have shared this – I sincerely doubt it.
I suppose to clarify:
My suspicion is that the dealer has been on at the warranty company ever since for a refund to him for the cost of repairs, and they’ve relented and he wanted the payment out to him. As the warranty policy was in my name, they automatically sent it out to me.
I could be a bit of an arse with it; the company is regulated by the FCA, so I’d be really interested to hear how they were going to make a payment to a third party when I, as policy holder had not expressly authorised this.
Some of the mitigating factors are: with a full and total refund, you could argue that the cost of the policy had been fully covered by the dealer. Also I did agree with the dealer that if they managed to get any money from the warranty this would be shared so he could be entitled to all or some of it.
I suppose from my point of view, I’m annoyed that the dealer has not notified me that they have achieved a payment out and would he have shared this – I sincerely doubt it.
VeegasS4 said:
I could be a bit of an arse with it; the company is regulated by the FCA, so I’d be really interested to hear how they were going to make a payment to a third party when I, as policy holder had not expressly authorised this.
You don't authorise your car insurance company to pay 3rd parties. Indeed you can them not to, and they'll ignore you.VeegasS4 said:
I suppose from my point of view, I’m annoyed that the dealer has not notified me that they have achieved a payment out and would he have shared this – I sincerely doubt it.
The dealer may not even know. Or perhaps this is your share.VeegasS4 said:
The arrangement was that the full purchase price and a small (£150) contribution towards my costs (which amounted to over £850 for the cost of the Audi diagnostic, car hire, recovery of the car originally and trains to and from him). What was also agreed is that if the dealer did manage to get any money from the warranty company, this would be shared with me - recorded in the agreement of full and final settlement email.
If you've agreed to split the money from any warranty claim, then that's what you should do.Do a three way email between the warranty co and the dealer, asking who you send £250 to.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff