Optional extras are the spice of new car ownership, a decision that can make your car your own, but they don’t come cheap.
A new study, conducted by Money.com.au, revealed that a significant portion of car owners regret purchasing certain optional extras.
The loan comparison site surveyed 1000 motorists and asked which dealership extras they wished they’d never paid for, or regretted buying. Nearly a quarter (22 per cent) said they wish they’d never purchased an extended warranty, while paint protection was the next highest regret, with 20 per cent saying it was a waste of money.
Money.com.au’s finance expert, Sean Callery, says car buyers often get swept up in the excitement of a dealership purchase and agree to extras they don’t need.
“When you’re signing on the proverbial dotted line for a new car at the dealership, it’s easy to get caught up in the bells and whistles and find yourself nodding along to every extra on the sales checklist," he says.
'But many of these add-ons simply don’t stack up over the long term because they’re either overpriced compared with what you can buy independently or provide little real protection.”
But why do so many people regret buying something as useful as an extended warranty? Well, Callery says that it's not so much extended factory warranties as the dealership-specific used car warranties.
“Extended dealer warranties often overlap with the manufacturer’s warranty and only offer value after it expires, by which time many drivers have sold or upgraded their car. You’re effectively paying upfront for protection you may never use.”
“Extended dealer warranties also come with plenty of fine print. They often exclude everyday wear and tear, common modifications and key parts or systems. They may lock you into getting repairs done at the selling dealership or a narrow authorised network. In many cases, you’re better off setting aside an emergency fund for future repairs.”
As Callery mentions, there is a big difference between a dealership warranty and a factory warranty. When purchasing a used car, if it's still within factory warranty, it does transfer over to your ownership, too, as long as the car has been serviced to the recommended intervals.
Now, an extended warranty that is offered to "prolong" the factory warranty can become a bit hazy. These claims are entirely honoured by the dealership or third-party warranty company and not the brand itself, which often comes with a lot of fine print.
This could mean that dealerships can find a way out of having to pay for repairs by claiming the car has been “used inappropriately” or has “abnormal wear,” and sometimes, there are actual limits to how much can be claimed under the warranty.
The NSW government also warns against this, stating: “Be aware that some extended warranties can come with exclusions and special conditions and limitations that could mean you need to return to the dealer for all maintenance services. Read the terms and conditions to understand what the warranty covers.”
When paying extra for an extended warranty, Callery says that you should always read the fine print and not be pressured into signing. “It’s always worth taking the time to read through what’s actually on offer and consider whether there’s anything you’re likely to get value from. Don’t feel pressured into signing up unless you’re getting a good deal,” said Callery.
With that in mind, some used cars are already covered under a statutory warranty, which you can learn more about here.
Zane Dobie comes from a background of motorcycle journalism, working for notable titles such as Australian Motorcycle News Magazine, Just Bikes and BikeReview. Despite his fresh age, Zane brings a lifetime of racing and hands-on experience. His passion now resides on four wheels as an avid car collector, restorer, drift car pilot and weekend go-kart racer.
