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I'm looking at purchasing a toyota caldina 2006 which the dealer is getting from overseas. Its done 28140 kms and its costing $12990.00 +orc of $400. We thought about getting a extended warranty for two years which is $1200 is this a good idea or does the consumers act cover for how long.

Hi there,
The CGA doesn't have an expiry but is at its strongest during the first few months after purchase. Faults outside this will need to be discussed with the dealer and can end up in a dispute tribunal if agreements are not reached or mediation is required. An extended warranty is Insurance against breakdown and like accident cover, may never be needed but good to have if needed.
Toyota's are generally reliable and I'm not aware of a common problem that would cost lots to fix.