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Yes, of course it is. Go and try to get something fixed and see how you go.

They will always say it was a pre-existing condition (how are you going to prove otherwise), or you caused the defect due to abuse (again how are you going to prove otherwise). There are fewer more unscrupulous people in the world than used car dealers. Ask anyone that has ever tried to claim anything on a 2nd hand car warranty. The devil is in the fine print.

yeah. unless the engine falls out as you are driving the car away from the dealer when you bought it.. you are most likely out of luck. Most 'used car warranties', aren't worth the paper they are written on.

I did get a new muffler under used car warranty once, but only because it was the service manager's last day before starting a job with another company, so he didn't care!

According to most used car dealers, pretty much everything is wear and tear/consumables and therefore outside the scope of a warranty.

In NZ we're covered by the Consumer Guarantees Act that states a good must be in serviceable condition for a length of time that would be reasonably expected of that good, so if it fails within that time it's up to the retailer to repair/replace/refund the item. Because of this extended warranties are largely pointless.

Of course, "reasonable" is a term that's subjective, and that's where issues come in. You might expect your newly acquired car to go for 24 months without a significant fault but the dealer might think 3 months is long enough. There's bound to be a simliar law in Australia.

lol "may be useless" - I love your glass half full attitude.

You have been had by one of the best car dealer scams that has ever been conceived.

Don't worry about it. If worst comes to worst you take your car to try and claim on any 'warranty'. If/when they reject is you get heavy with them and point out how interested the ACCC/Current Affair and the like are interested in stories like this. If they cave you get your car fixed - if they don't you pony up the cash and fix it yourself. That is life.

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