Consumer Protection is urging Western Australians to avoid buying extended warranties on new products, saying they are likely not worth the money.
The Agency said it had received 323 enquiries and 68 complaints about extended warranties over the past 12 months.
“Overwhelmingly, they related to the purchase of new motor vehicles,” it said.
Commissioner for Consumer Protection, Gary Newcombe said the main issues involved consumers being unable to seek a satisfactory remedy after a fault developed, or being unaware their particular issue was not covered under the policy.
“Consumers also encountered similar issues after buying extended warranties on washing machines, dryers, couches, mobile phones and laptops,” Mr Newcombe said.
“Being offered an extended warranty by a salesperson on new cars, whitegoods or electronics may be a familiar scenario to many shoppers, but it could be a waste of your money if you buy one.”
He said this was because the products automatically came with a number of guarantees under consumer laws, including a requirement that they be of acceptable quality and last a reasonable amount of time, depending on what they were and how much they cost.
“That means if you pay extra for an extended warranty — which is actually a type of insurance policy — you could be paying for repair or replacement rights that are already free under the Australian Consumer Law,” Mr Newcombe said.
“Most extended warranties include long lists of exclusions and can require consumers to do certain things for them to remain valid, such as regularly servicing a motor vehicle with the selling dealer. Failure due to wear and tear is another area that may not be covered.”
He said Consumer Protection’s key advice was to ask the salesperson what benefits an extended warranty would provide above existing entitlements under the Australian Consumer Law.
