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Malibu/Malibu Maxx: Warranty/Extended Warranty

illinialumniillinialumni Posts: 10
edited March 20 in Chevrolet
I just bought an '05 LT Sedan, and didn't immediately purchase the extended warranty from the dealer. I was wondering if anyone here had any good or bad experiences with after market companies. AAA has one through Mercury Insurance, and then there are all of the web based companies. The dealer wanted ~2500 for the 84/100 (or the 72/100) either way it seemed like alot. The AAA one is 2000 for 84/100, and includes the tire damage, which the GM one didn't even cover. Any inputs will be greatly appreciated.

Comments

  • maxx4memaxx4me Posts: 1,340
    he, he...even though I'm a tar heel fan, I'll save you $600:
    Black up in PA has the best price on a GMPP right now. It is $1,955 for the 72/100k. There is no such thing as an 84/100k with GMPP. Here's the link:
    http://www.gmoutlet.com/quote/emailserver/majorguard/05mg2.htm
    I'll be buying mine within a month, since I'm running out of time. My advice: drive your car just shy of the 12/12k mark. Calculate your actual miles driven per year and buy the GMPP based on your driving habits. GMPP will add on the 72/100k on top of how many miles/time you have on your 'Bu at the time you submit the paperwork to Black. While I'm not pleased about paying that kind of money for an extended warranty, at least you are not paying the book value quoted you at the dealer.
  • Thanks! (I'll still have to root against you guys when we meet in the finals.) Will I need an inspection if I wait till 11K miles to buy this, and what do you think the chances are that the prices will be going up in the meantime?
  • bporter1bporter1 Posts: 229
    Did you all know that prices for extended warranties can be negotiated too? When the dealer F&I person gives you a price, offer half. You can always move the price up until an agreement is made. Everything is negotiable when buying a car, and yes it does work. The price of the warranties are often twice as what they should be. Just some advice, the worst thing they say is NO. But you don't know unless you ask.
  • I did try to negotiate with the F&I guy at my dealership, and there was no budging. 2400+ and then tax. This Black dealer in PA sounds almost too good to be true. If I read their information right, I should wait till I have 11K, and then my 72/100 will be good till 111K and almost 8 total years. I will be talking to them this week.
  • maxx4memaxx4me Posts: 1,340
    You are reading that correct. That is the way GMPP works everywhere. GM allows you to buy their extended warranties at the same price as when you bought the car (as long as you do so within the first 12/12k). When you call Black, you will either have your call answered by or returned by the owner Allen Black. Pretty amazing service in this day and age I'd say.
    I wish I did not have to buy this at all, but the Consumer Reports trend seems to be going in the wrong direction regarding the Malibu.
  • dtownfbdtownfb Posts: 2,915
    You may want to check but i thought the extended warranties were total vehicle miles. So the 72 month/100k miles woud cover you for 6 years and 100,000 miles not 111,000 miles.

    this is partly how they make their money. The first 3 years/36k miles are covered by the bumper to bumper warranty then theie warranty kicks in afterwards. So they have 3 years to invest your money before you start making claims to them.
  • maxx4memaxx4me Posts: 1,340
    feel free to call GMPP directly. They have an excellent 800 support number to answer your questions.
  • csandstecsandste Posts: 1,866
    Since they're marked up by the dealer--100% at least, is there something about the reliability of these cars that's suspect?
  • maxx4memaxx4me Posts: 1,340
    well, assuming I wasn't lied to (imagine that), he is making $100 on the deal, and has to turn the rest of the money into GM. That would not be a 100% markup. It also tracks with what the good folks up at Black's are saying. I guess only an insider at GMPP could tell if this is true.
    As far as the coverage, go to the GMPP website and look for yourself. While it does make sense to wait for the last moment, my "moment" is less than 1,300 miles from today. That is only one month's worth of driving, and isn't worth worrying over whether I can get in touch with the finance manager at the last moment. It is close enough to the 12k miles that I went ahead and did it.
  • csandstecsandste Posts: 1,866
    http://hffo.cuna.org/story.html?doc_id=453&sub_id=12433

    "A typical buyer of an extended warranty (also known as a service contract) pays about $1,000 but only collects on some $250 in repairs over the life of the contract, according to Checkbook magazine, a consumer publication that also operates Car Bargains car-buying service. "From a straight financial perspective, extended warranties don't make sense," says Robert Ellis, director of operations for Car Bargains. He, along with many personal finance experts, advises paying for repairs out of your savings if you are able--thus avoiding both dealer markup on the contract and the likelihood you will never get your money back in covered repairs....

    Consider mechanical breakdown insurance
    Sold by insurance agents and some credit unions, these contracts--often $500 or less for new-car coverage up to six years or 100,000 miles--cost about half what a dealer will charge you for a typical extended warranty. And mechanical breakdown insurance, or MBI, usually lets you go to the repair shop of your choice; dealer-sold warranties limit repairs to dealers of that brand and sometimes even the specific dealership where you bought it. MBI, unlike dealer warranties, also is regulated by many state insurance departments for another possible source of protection. Depending on your contract, MBI may cover only major mechanical components."
  • mr_botsmr_bots Posts: 225
    I don't really think Extended Warranties are worth it. None of my vehicles have had problems between the 36k where the warranty expires and the 100k miles where most extended warranties end. Even after the 100k miles the cost doesn't add up to the $1000 an extended warranty costs. I have a 96 S10 that has 150k miles on it, I've spent ~$900 for two repairs (leaky fuel injector, and air compressor) but both were after well over 100k miles. This is my take: most vehicles have a bug or two after you first get them (under warranty), then they are set until things start wearing out, which doesn't usually happen till after 100k miles.
  • csandstecsandste Posts: 1,866
    It was a 1986 Ford Tempo, the very worst car I ever had. The Ford guarantee was that if you paid for anything once it was covered--never knew so many things could go out once.

    Since then, I've passed, after learning about the huge markups. I always heard that the dealer got 50% and the manufacturer kept the other half. As you can see from the report, they only pay about 25% out on the dollar. I think they wanted to sell me one for $800 when I bought my MAXX. Said it was the same cost that they passed along to their employees. At the risk of putting a curse on my car, I passed. When slot machines pay out at 90% plus, and lotteries pay out at 50%, a payout of 25% is a pretty bad deal.

    Statistically you'd do twice as well going down to the c-store and buying $1000 worth of scratch game tickets.
  • maxx4memaxx4me Posts: 1,340
    ....for a GMPP? I doubt it. I'm amazed how some dealers are pushing their secondary warranty companies which is what I suspect this was. If you think it was GMPP, pass me your dealers name. With GM's "fine reputation for quality" I don't think it is unreasonable for a person to consider an extended warranty for a brand new Malibu considering it has a redesigned engine (3.5 up from 3.4), a new platform, a tranny which had the wrong parts in it from the getgo, and a totally new chasis. Oh, and did I mention the electric steering?? As the one posted article pointed out, if you plan on keeping it a lot more than 4 years, it might be for you. To counter the one post regarding reliability after the 3/36,000 mark, my 626 required $3,500 in repairs from the 3/50,000 mark until year 8. Needless to say, I was very glad I purchased one for that car. Despite paying only $19,100 for my Malibu after tax, there still is nothing coming out this summer or next which makes me question my 'Bu purchase. I absolutely love the car, and will be keeping it until the blue/green smoke billows out the back tailpipe. As the posted article said: it makes sense for owners like me.
  • dtownfbdtownfb Posts: 2,915
    I could care less. I just don't want to see him/her get taken advantage. I always understood the warranty will pick up AFTER the 3/36k warranty. And it was total vehicle mileage meaning he/sh is covered only for 72 months or 100k miles, whichever comes first. I never heard of adding the mileage or months. Plus I know it is near impossible to get coverage over 100k miles.
  • maxx4memaxx4me Posts: 1,340
    Well, you can think so, but it would still be incorrect. Mileage is added on with GMPP. Good luck to you.
    I'm sorry the ss posted info got yanked. I was just about to show off the pictures of the 'Bu SS. Very impressive looking. I just don't like the idea of 18 inch wheels. Not a great thing to have in the snow and ice. On the upside, the fact that they are doing an SS means that the car should be around a long time; maybe long enough for me to buy another one in 9 years.
  • shadow5599shadow5599 Posts: 101
    After my last car purchase a few months ago I was put under alot of pressure to buy the extended warranty first by the salesrep then I was was shuffled off to a financial guy to get more presssure, of which I refused several more times.
    They finally realized I wasnt going to buy it and we finished the deal on the car. I've never purchased exteneded warranty on any car I've ever bought.

    The following is an "opinion" as found on:
    http://www.lemonaidcars.com/update.htm
    I quote....

    Extra pressure on extra warranties.
    Since we warned buyers to stay away from most extended service contracts six months ago, Lemon-Aid has learned that automakers are increasing the pressure on their dealers to sell their plans on new vehicles.
    Three years ago, almost one-third of cars sold carried these extended contracts, however, last year barely twenty percent of new cars had this option, with many plans sold by independent companies offering dealers higher profits.
    Automakers want this lucrative business back. For example, each plan sold to the dealer for $1,400, gives GM a $600 profit, with about $700 set aside for claims, and $100 reserved for administrative costs. The dealer profit comes from the dealer’s markup.
    Lemon-Aid’s bottom line: buyers should shun vehicles that require the extra protection.

    *And*

    Beware of Worthless Auto Warranties.
    Lemon-Aid tells you which new and used vehicles need an extended warranty. Nevertheless, car buyers are often offered bogus $2,000 extended warranties as extra protection when they buy a new or used car.

    These warranties promise the buyer several extra years of warranty coverage, either for the entire vehicle or the powertrain. Owners feel protected and dealers rake in a 60-80 percent profit on each plan they sell.

    Most of the time, these extra warranties are a bad deal for the following reasons:

    - Only the most problem-prone vehicles (American front-drives) need this extra protection. This forces the question: why are you buying an unreliable car in the first place? Most of the common engine and transmission defects are covered by free, “goodwill” extended warranties (Chrysler, Ford, GM, Honda, and Toyota). Factory defects are covered by local consumer protection laws enforced by small claims court judges.

    - Many extended warranty providers go out of business and dealers claim they aren’t responsible.”

    This denial of responsibility by dealers isn’t working. Canadians are getting refunds in small claims courts and American consumers, scammed by the recently failed National Warranty Insurance Co., have filed class action lawsuits against dealers in California, Texas, Nevada, and Illinois. The lawsuits allege that dealerships took part in a scheme to profit from selling customers worthless service plans that resulted in $100 million in losses.
  • csandstecsandste Posts: 1,866
    Amen to everything you said. If it wasn't a cash cow you wouldn't have to fight your way out of the finance guy's office. The only extended warranty I've ever purchased was on a 1986 Ford Tempo. Seems I guessed right on that one since everything on the car broke once (Ford had that fix it once guaranteed for life schtick). Since then I've taken my chances and never had a repair that would have meant it was a good deal. Biggest rip... Hyundai's extended warranty that pushed the entire car out from 60,000 to 100,000 miles. A thousand bucks or so to extend the non-power train out 40 thou. Had an Elantra for 80,000 miles with no out of pocket expenses other than a lost gas cap replaced with an AutoZone unit. $130 to replace the cap with a factory unit and read the codes... odd since I'd used the other cap for 20,000. That experience made me leave Hyundai and come back to GM-- good car, bad dealer.

    As far as pushing extended warranties, they must see the suckers coming....
  • I am in the process of purchasing a 04 Maxx LS. Should I spend the bucks to buy and extended warranty plan? Your thoughts will be appreciated.
  • maddmaxxmaddmaxx Posts: 81
    I don't know that I will get the money's worth out of my GMPP. They will not cover most of the (few) problems my car has had in 81k. When I lived in Louisiana, I had a Louisiana Dealer Services Extended Warranty on an Accord that covered nearly everything with a $35 deductible. It was much better than the GMPP I have now. But I must say the Maxx has had fewer problems so far than the Accord did. So I think they're pretty reliable.
  • hgr3inokhgr3inok Posts: 28
    FWIW, we purchased a GM Major Guard 72/72/$0-deductible plan when we bought our "new" 2004 Maxx LS in January 2005. I have had good experiences with GM plans. I have bad experiences with third-party plans.
  • paopao Posts: 1,867
    what didnt GMPP plan not want to cover on the car???? just curious....73K on my Maxx and no problems to speak of either...only in the shop twice since I had it
  • maddmaxxmaddmaxx Posts: 81
    They don't replace the fire damaged headlights because they say it's a cosmetic issue. My a/c does not work half as good as it did when new, but they say they can't do anything about it because GM says 20 degrees colder than outside is acceptable. Well, it's been 104 and my wife and kids are sweating with the a/c on. The dealer wants to charge $70 to look at the car for any problem even though I have the 0 deductable GMPP. I think I'm going to try a different dealer.
  • paopao Posts: 1,867
    I would definitely try a second service department..go in with the GMPP plan in hand...you might want to re-read your coverage...if the damage to the headlamps causes changes in light projection you might have an issue.....coolness of the A/C should be measured from the vents...not compared to outside temp......there is a device they should use to measure the temp of the air coming from the vents...not what the cabin temp is compared to the outside temp....

    would call the service number on the warranty plan as well and tell them your dealer is refusing to deal wtih problems withour a $70 surcharge and see what they tell you as well
  • Some general info on MAJORGUARD which I did not know until this week - all very nasty surprises:

    Majorguard classifies repairs into green, yellow, and red-flagged groups.

    Any repair in the red flagged group (the largest group, the one listing the 15-18 major trouble spots of the car, including all front suspension issues) will __not__ be repaired by the participating dealer until they have been visited by a "majorguard adjuster" who reviews the case and then may or may __not__ greenlight the repair.

    This majorguard adjuster is __not__ immediately available. The dealer has to wait 24 to 48 hours before they show up at all, and the adjusters do __not__ tell the dealer when they will actually be there. You also have to leave your car at the dealer for the adjuster to review.

    Worse, there are some areas majorguard adjusters don't regularly visit.

    What I am trying to say is if your MAJORGUARD covered car breaks down and the warrented repair is on the long "red list", you could be stranded for __several days__.

    They do not provide rental cars directly - you have to rent a car from whoever, and then try to get reimbused from Majorguard. My understanding is the reimbursement amount is not very much.

    I assumed as GM issued the program directly it would be a real warranty. It appears no better than any of the other extended warranties. Buyer Beware !!!
  • paopao Posts: 1,867
    what was your warranty work that required the adjustor??
  • the front end suspension (rattles, clunks, etc.).

    Also on their list are several transmission procedures, and at least 10 others I did not get to see (I did see the list and saw at least 16 individual procedures, but not the names).
  • paopao Posts: 1,867
    ok sounds like a pretty major repair then.....thought the suspension had a TSB out on it....and the new re-engineered parts....is that what they are doing under the extended warranty......
  • yes, it was the TSB several others have had done. GM has redflagged this one, requiring adjuster approval in my area.

    I was told Urban areas are much worse for getting things fixed via MajorGuard as GM has many more cars to deal with and wants more adjuster approvals, but ironically there are fewer adjusters per dealer #'s - hence the delays.
This discussion has been closed.