Are warranties a scam?
Discussion
My colleague has just agreed to buy a 3 year old VW Golf 2.0 TDI form a VW main dealer. It's done 60,000.
She was sold an AA warranty for £399.
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
Incidentially, they charged a £75 admin fee for the purchase. Don't we love that scam .....
She was sold an AA warranty for £399.
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
Incidentially, they charged a £75 admin fee for the purchase. Don't we love that scam .....
Si_man306 said:
Sounds like she needs to learn to haggle 
Funny you should say that. She did quite well actually getting £9000 part exchange on her car when Parkers says it is only worth £8500. I had discussed it with her as she got well shafted last time she bought a car, and she knew her aim was a cost to change of £1000 on a £10,000 sticker price. In the end the car she bought was up for £9990 and her cost to change was £1200 including the warranty, the admin charge and 6 months road tax (£57).
If it helps; I know the AA warranties are pretty good as the cover is done very differently to most warranty companies.
AA cover a fixed amount against a repair bill which is quite fair IMHO.
Better than going through all the T&C's and exclusions on most policies to discover that in effect it covers next to bugger all!
AA cover a fixed amount against a repair bill which is quite fair IMHO.
Better than going through all the T&C's and exclusions on most policies to discover that in effect it covers next to bugger all!
mrmr96 said:
PurpleMoonlight said:
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
I expect the warranty will cover significantly more than the SOGA so you're not comparing like with like, are you?A lot of dealers sell or include a warranty to protect themselves against SOGA claims as most consumers don't understand the difference. In other words, if the warranty excludes something they think they're no other recourse.
the "Gold" warranty that was included with my car was on my invoice for £399 and had a total claim limit for £1000 so if it was really sold for that amount no one would buy it. I assumed it is some form of tax scam to lower the margin made on the car, but the warranty seems to be VAT rated so i don't really understand it
PurpleMoonlight said:
My colleague has just agreed to buy a 3 year old VW Golf 2.0 TDI form a VW main dealer. It's done 60,000.
She was sold an AA warranty for £399.
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
Incidentially, they charged a £75 admin fee for the purchase. Don't we love that scam .....
Ah, the magical, mystery, free, inclusive, 3 or 6 month (depends who you ask), SoGA FREE warranty that the dealer MUST provide?She was sold an AA warranty for £399.
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
Incidentially, they charged a £75 admin fee for the purchase. Don't we love that scam .....
Her AA warranty will be even better.
ETA: I'd have told them to ram their £75 admin fee though
.onesickpuppy said:
Ah, the magical, mystery, free, inclusive, 3 or 6 month (depends who you ask), SoGA FREE warranty that the dealer MUST provide?
Her AA warranty will be even better.
ETA: I'd have told them to ram their £75 admin fee though.
Where did I mention that the dealer had to provide a free warranty, or any warranty for that matter. I referred to their legal obligations under the SoGA.Her AA warranty will be even better.
ETA: I'd have told them to ram their £75 admin fee though
.As far as I am aware pretty much anything that went wrong on the car within the first 6 months would be deemed to be present at the time of purchase, and so be down to the dealer to repair/replace. So the warranty is likely to only be usefull from month 6 - 12, and even then there appears to be a possible claim limit of £1000. Not a particularly good isurance for £399 if you ask me.
PurpleMoonlight said:
Where did I mention that the dealer had to provide a free warranty, or any warranty for that matter. I referred to their legal obligations under the SoGA.
When you implied that the cover from SoGA and AA warranty was equivalent.Here in fact:
PurpleMoonlight said:
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
PurpleMoonlight said:
Where did I mention that the dealer had to provide a free warranty, or any warranty for that matter. I referred to their legal obligations under the SoGA.
As far as I am aware pretty much anything that went wrong on the car within the first 6 months would be deemed to be present at the time of purchase, and so be down to the dealer to repair/replace. So the warranty is likely to only be usefull from month 6 - 12, and even then there appears to be a possible claim limit of £1000. Not a particularly good isurance for £399 if you ask me.
Might want to check what the claim limit means, often its the maximum per individual claim, with a fixed number of claims allowed per year, NOT the maximum they'll cough up full stop.As far as I am aware pretty much anything that went wrong on the car within the first 6 months would be deemed to be present at the time of purchase, and so be down to the dealer to repair/replace. So the warranty is likely to only be usefull from month 6 - 12, and even then there appears to be a possible claim limit of £1000. Not a particularly good isurance for £399 if you ask me.
If its £399 for the full 3 years, then it could pay for itself many times over.
PurpleMoonlight said:
onesickpuppy said:
Ah, the magical, mystery, free, inclusive, 3 or 6 month (depends who you ask), SoGA FREE warranty that the dealer MUST provide?
Her AA warranty will be even better.
ETA: I'd have told them to ram their £75 admin fee though.
Where did I mention that the dealer had to provide a free warranty, or any warranty for that matter. I referred to their legal obligations under the SoGA.Her AA warranty will be even better.
ETA: I'd have told them to ram their £75 admin fee though
.As far as I am aware pretty much anything that went wrong on the car within the first 6 months would be deemed to be present at the time of purchase, and so be down to the dealer to repair/replace. So the warranty is likely to only be usefull from month 6 - 12, and even then there appears to be a possible claim limit of £1000. Not a particularly good isurance for £399 if you ask me.
mrmr96 said:
PurpleMoonlight said:
Where did I mention that the dealer had to provide a free warranty, or any warranty for that matter. I referred to their legal obligations under the SoGA.
When you implied that the cover from SoGA and AA warranty was equivalent.Here in fact:
PurpleMoonlight said:
It seems to me that she is paying to cover the dealer for their legal obligations under the SoGA, at least for the first 6 months anyway.
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