Ontario student pays nearly $3K for extended warranty on used luxury car, surprised repairs aren't covered
An Ontario student bought a used luxury car last July and because it was seven years old the car salesman advised him to pay extra for an extended warranty.
“I was told by the warranty company, when I bought the warranty, everything would be covered with the car," said Carter Roung of St. George, near Brantford, Ont.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
Roung purchased a 2016 Mercedes-Benz CLA 250 and said the car dealership charged an additional $2,922 for a one-year extended warranty.
He said, in his mind, it was described as a “bumper to bumper “ warranty and thought any repairs needed in the first year would be covered.
Last month, when he was driving, a check engine light came on and Roung said when he took the car to a repair shop he was told he needed emissions work done at a cost of $2,828.
“I went in with full thought that I was going to be able to use my warranty. A couple of days later I found out they are not covering it and I was very shocked," Roung said.
The warranty was through iA Dealer Services and the company told Roung in correspondence "the contract covers everything except what is in the contract exclusions. Diagnostics was not chosen therefore (it’s) not eligible for coverage.”
Roung's mother, Stephanie, said it was frustrating to pay almost $3,000 for the extended warranty and not have the repair covered and added it was difficult to find out exactly what is covered under the warranty.
An Ontario student paid nearly $3K for an extended warranty on a used luxury car, only to be told an emissions repair was not covered.
“When you purchase an extended warranty for something you expect it will be there for you if a problem arises with the vehicle, but that's not the case,” she said.
When you buy a new vehicle, it will come with a factory extended warranty which is generally very reliable and covers most repairs, however when you purchase a used car, third party or aftermarket warranties can come with exclusions and fine print.
Consumer Reports (CR) has researched extended warranties extensively and according to Automotive Reporter Benjamin Preston with CR their findings show extended warranties are usually not worth buying.
“Typically we recommend not going for an extended warranties. You would be better off setting aside money for eventual repairs," said Preston.
Preston added, “You're buying it for peace of mind, but it costs a certain amount of money to buy the warranty and then depending on what it does or doesn't cover, it might not really pay out.”
After CTV News Toronto reached out to iA Dealer Services the warranty company said the claim is “being resolved.”
The Roungs were told as a goodwill gesture they would be refunded the $2,828 for the repair which came as a relief to them.
“The warranty company has agreed to pay for my repair which is great news,” Roung said.
CR conducted a survey and found 55 per cent of used car buyers who purchased an extended warranty never used it and only 25 per cent said they would buy one again.
If you're buying a used car and you’re offered an extended warranty to purchase take the time to read the fine print.
CTVNews.ca Top Stories
BREAKING Trudeau promises $1B in loans for child-care providers to expand care centres
The federal government is launching a new loan program to help child-care providers in Canada expand their spaces, and will be extending further student loan forgiveness and training options for early childhood educators, Prime Minister Justin Trudeau announced Thursday.
Spring allergy season has begun. Where is it worse in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
N.B. man wins $64 million from Lotto 6/49
A New Brunswicker will go to bed Thursday night much richer than he was Wednesday after collecting on a winning lottery ticket he let sit on his bedroom dresser for nearly a year.
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
Multiple bridges in Calgary shut down for police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
King Charles calls for acts of friendship in first public remarks since Kate's cancer diagnosis
King Charles III gave public remarks for Maundy Thursday, addressing the importance of acts of friendship, following his and Catherine, Princess of Wales’ cancer diagnoses.