Forced Mechanical Warranty

S

Sup3rc

Well-Known Member
Joined
Jun 23, 2011
Messages
160
Reaction score
150
Hi guys
I just want to find out if it's true that on cars older than 5 years, you are now forced to take out a mechanical warranty from the banks before they continue with the loan application. My wife is refinancing her 2008 car and she can not continue with the loan, if she doesn't take out a R7000 mechanical warranty. I ask them why I was not forced to do that, also on a 2008 model, same manufacturer, same bank(Absa) and they can not answer me. They just told me on any vehicle now older than 5 years, you must take out the warranty before they approve the loan.
Thanks
 
Makes no sense...

The bank should know that you in a bind since you need to re-finance the vehicle as it is already. I smell a rat on the bank's part.
 
Actually they just want to ensure that 'their' asset is maintained. And working if it is repossessed.

I do not agree. But financing a 5 year old car is fraught with issues.
 
silver6933 said:
Actually they just want to ensure that 'their' asset is maintained. And working if it is repossessed.

I do not agree. But financing a 5 year old car is fraught with issues.
Click to expand...

Strange that they've been doing it for years now. Whats changed?
 
its BS. they usually conveniently an offer on hand. no doubt with their commission and a kickback.
 
The "forced" warranty is actually allowed I'm terms of the NCA under the credit insurance provisions. They must give you freedom of choice however and you should be allowed to get your own (cheaper) warranty and then provide the proof to your bank.
 
Same thing with me two months ago with Wesbank (two options from Motorite: R6500 or R8000). And yes, you are allowed to get your own warranty. There is a clause in the contract which states that if your car has not had the last service done according to the Manufacturer's guide (or log book), then the car will need to be serviced at an agent or an RMI registered workshop within 30 days of inception.

I wonder what happens in the case where the car was not serviced? Would they refund the full amount as the warranty is now voided?

(I think the bank gets like 15% back on every deal...)
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X