Extended Warranties

billy3554 · April 2012

So many reasons not to live in Florida! My favorite is the crazy $600 document fees! And of course, the Stand Your Ground lunacy! Florida sometimes seems like a third world country.

mrt1063 · April 2012

I bought a used 2006 Toyota Highlander Hybrid from a Toyota dealer and bought the Warranty Solutions warranty thru the dealer. I have used to twice, for a $600.00 dollar wheel bearing replacement and for a total of $1800.00 for a air conditioner condenser and a radiator replacement at a Toyota dealer. Both times the dealer called them for authorisation, they approved the wheel bearing over the phone and sent a adjuster out to OK the second repair. Everything went smooth no problems. The warranty has payed for itself.

mikefm58 · April 2012

My favorite is the crazy $600 document fees

If you're any kind of negotiator it's very easy to get them to increase your trade in or reduce the selling price by the amount of the dealer fee.

And I'll take Stand your Ground over anti-gun high tax liberal states like CA, NY, MD, Mass, and Illinois any day.

billy3554 · April 2012

Yes, any alert negotiator should easily negotiate away the dealer fees!

Stand your ground - such a vague phrase with so many interpretations. In Maryland stand your ground generally means standing strong against such things as outrageous dealer fees. A vast difference from Florida's interpretation of the phrase.

To set the record straight and factual, we progressives in Maryland are not anti-gun or high tax lovers. It is true we do recognize the value of sensible fire arm regulation as well as the value of well spent taxes and well designed tax laws. We truly do understand the Second Amendment along with most of the others.

I think Rhode Island, Vermont, Oregon and Washington should be in any list of "anti gun high tax liberal states." All very nice places to raise a family in relative safety, in case anyone is interested in such things.

shortyes · May 2012

I found this revision recently for Florida. It might be the one thing I am glad about Rick Scott. I found this in a different forum.

Motor Vehicle Service Agreement - Forms & Rate Issues
As a result of SB 2176, effective 06/01/2010, the requirement that forms and rates for motor vehicle service agreements (also referred to as an auto extended warranty).be filed and approved by the Office of Insurance Regulation has been lifted.
By July 1, 2011, each service agreement sold in this state must be accompanied by a written disclosure to the consumer that the rate charged for the service agreement is not subject to regulation by the OIR. A service agreement company may comply with this requirement by including such disclosure in its service agreement form or in a separate written notice provided to the consumer at the time of sale.
The OIR may order a service agreement company to stop using a form that:
1. Is in violation of or does not comply with the Florida Insurance Code or an Administrative Rule.
2. Contains any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the service agreement.
3. Has any title, heading, or other indication of its provisions which is misleading.
4. Is printed or otherwise reproduced in such manner as to render any material provision of the form substantially illegible.
5. Contains any provision which is unfair or inequitable or which encourages misrepresentation.
6. Contains any provision which makes it difficult to determine the actual insurer or service agreement company issuing the form.
7. Contains any provision for reducing claim payments due to depreciation of parts, except for marine engines.

shmoopy618 · May 2012

I've gotten two quotes for extended auto warranties.

One from Assurant via USAA for 2 years, 24k miles for $1,200 - no waiting period, no deductibles.

One from Mercury via AAA for 4 years, 48k miles for $1,900 - one month waiting period, $100 deductible per breakdown/repair (regardless of the number of parts.)

brooklyn_rick · June 2012

I want to share my (excellent) experiences with GEICO MBI.

This has covered my 1999 auto (150k+ miles) and is part of my GEICO automobile insurance. It has a $250 deductible for each occurrence.

The cost (in my situation) has been $97 per year (First year, while car was under manufacturers warranty cost $30.) However, I am required to carry collision and comprehensive insurance as well so since my car is 13 years old and normally I would have dropped this, the cost is actually much higher.

(In my situation, the coverage is indefinite - so long as I keep my GEICO policy (including collision/comprehensive coverage.) Currently, I believe they only offer this for 7yr/100k miles and most owners would keep their collision/comprehensive insurance anyway.)

Here is why I like this instead of a standard extended warranty. With the standard extended warranty, the issuer receives the full premium in advance and it is to their benefit to avoid paying out claims to the extent they can. With the GEICO plan, they are collecting a portion of the premium every six months. They have additional incentive to keep the consumer happy so as to not completely loose them as an auto insurance customer.

GEICO requires that any repair be authorized by them first before work (other than the diagnosis) begins. They have always allowed me to bring my car to the service facility of my choice. The usual procedure is I report the problem to GEICO and bring the car to the shop. The shop contacts GEICO and explains the problem and repair cost. GEICO then either 1) approves the repair, 2) sends an inspector out to examine the car at the repair facility and if they agree, approves the repair or 3) explains why they won't cover the repair (normal maintenance item, they don't feel repair is needed, the failed part is covered under the manufacturer's warranty or the car was not adequately maintained (this last one never happened with me.)) When the repair is covered, I pay the $250 deductible and GEICO directly pays the rest by credit card.

The reason I have been so pleased with this coverage is because GEICO acts as an intermediary between myself and the repair facility. I am not sufficiently knowledgeable about repairs to know if I am being taken advantage of when it comes to repairs - so GEICO does this for me. I've also received advice from the GEICO claims adjuster. On one occasion when a failure (leaking exhause system) was not covered, he suggested that instead of having the full pipe replace for $750 that I just bring it elsewhere and have it corrected with flexible tubing.

So, before anyone asks, I have no financial interest in the insurance company - I'm not an owner. I've just been very please with this product.

texases · June 2012

Hard to get worried about $97/year. My problem is with the thousand/multi thousand dollar ones. Recently had another discussion about an 86 year old being pushed to buy a $7000 warranty for a 15 year old car. THAT'S criminal!

mikefm58 · July 2012

No financial interest? LOL, yeah right. How long have you been working for GEICO? Us regular people don't write such wordy reviews.

Kirstie_H · July 2012

Incorrect - we have all sorts of people who write wordy reviews.
If you don't have any evidence or don't like the post, you are free to ignore it.

ew_believer · July 2012

I first bought an extended warranty on a '96 Jeep Grand Cherokee that was a three year old lease car. For $975.00, I received approx. $5,000.00 dollars worth of Dealer-Repaired items from new rear end, ventilation repair(removing entire dash) to intake manifold gasket, rear-end oil-seal gasket and such w/ $50.00 deductible.
For me it is the only way to go for peace of mind and non-budgeted surprises.

Count me in,
P.S. I am now looking for another one for a 2007 Hyundai. Who would be recommended?

stever · July 2012

If you had coverage with one of the US Fidelis companies, it's time to get your claim in with the bankruptcy court.

In re US Fidelis, Inc.

Steve, visiting host

texases · July 2012

"US Fidelis growth was fueled by a number of illegal, fraudulent or misleading practices."

This explanation for why they went bankrupt probably applies to other similar companies still operating. They just haven't gone out of business yet!

I remember hearing all the radio ads for US Fidelis a few years ago, they sure SOUNDED trustworthy! :sick: :lemon:

stgelaisgu · September 2012

my wife buying a nissan juke 2012 sv AWD(CVT),this car is protect with a base warranty 3 yrs/60000km and 5yrs/100 000km for oil componant,motor,differential.A sailer offer an extention nissan warranty for a base up to 5 yrs/100 000km for $1500.00 tx incl.my question? it`s a good deal because this vehicule are more electronics and cvt components and existing since 2 years only,thank

jordangski · September 2012

I recently purchased a used 2000 Ford Taurus from a Ford dealership.
On the window of the car, it had a small sticker saying this car had warranty plans, ranging from 30-90 days. On an even bigger sticker on the back windshield, in large print, there are 2 check boxes:
[ ] No Warranty- As Is
[X] Warranty
Warranty is clearly checked, and it goes on to describe the warranty info. It also had the specific model number and stock number of the vehicle, in the dealership's system. So this sticker was specifically for this vehicle.

So throughout the process of purchasing the vehicle, the dealer, named Mike, kept mentioning the warranty. When I went for a test drive, I noticed a possible leak and the A/C making a rattling noise. Again, he kept mentioning the warranty, saying "Any issues with the car, you bring it in and we fix that up for you, no charge." Those issues were fixed within a day, in the midst of finalizing the deal. With the warranty and these issues fixed, we obviously felt confident about this car.
The day I finalized the purchase, I met with Mike in the morning. I payed in full, cash, for the vehicle. It was being registered in my mother's name, so we had to come back to sign papers later on when she was out of work.

When we returned, Mike was not there, and we dealt with a different salesman. We sat in a room, and he had us signing papers. He kept making it a point that we'd be out of here with a new car in minutes. He handed us things to sign, basically said "sign this and you'll be out of here within 3 minutes." So clearly, he's in a rush to get us out. Without describing what we were signing, the receipt had in small print "Car sold 'as is.' No warranty on this vehicle." Never was I notified that the warranty was suddenly not being offered to me. So with that said, why would I even think to ask about it? And why would they not explain it to my mother? This was the first time she came with me to the dealership, so wouldn't they explain everything to the person they are really selling it to?

Less than a week after purchasing the vehicle, my check engine light came on and the car was leaking fluids. I called on a Monday to schedule an appointment, they couldn't get me in until Friday. I showed up and handed my keys over. Before going to the waiting room, I made sure to ask "This is covered under warranty, correct?" The lady responded, "Yes, you're all set. No worries." So I waited patiently for 2 1/2 hours. They finally came in, said they fixed the engine light issue (spark plug). They couldn't fix the leak, I guess they didn't have the parts they needed. It was a Friday, so any orders wouldn't be in until the following Tuesday the earliest. So Tuesday came around, no call. On Wednesday, I called them up and asked how long I'd be waiting. She said they don't have any way of tracking the shipment, so they didn't even know. On Thursday, I received a restricted call. They left a voice-mail. Turns out it was the dealership. The lady said to give her a call back.

I call her back, and she informs me that I am not covered under warranty, but they will not charge me for fixing the spark plug before. The car was sold as is, and they have the papers to prove it. I explain how there was a verbal agreement and how it was even posted on the car. She says that apparently, my car was too old to cover with a warranty (2000 Ford Taurus) so that is why it was sold as is. I WAS NEVER INFORMED THIS. She said they would be willing to work on my car, just obviously with me paying out of pocket as normal. She says that the mechanics also noticed a coil spring near the rear tire is loose. She just thought she would mention it to be courteous, as I have a 4 month old baby that I drive with in this car. She's worried that it could blow a tire while driving. WHY IN THE WORLD was I not informed this sooner? The mechanic withholding that information potentially put my daughter and I at serious risk, as I frequently drive on the highway.

So at this point, I decided to call Mike to set things straight. I explain to him how there was warranty information ON THE CAR in two different locations, and all throughout our discussion, he kept mentioning it. He explained that he doesn't recall discussing it, as it was 2 weeks ago. The only thing they can go by is what's on paper, which is a signature of my mother, finalizing the deal, with the tiny words mentioning the whole "as is" business. He said the best he could do was double check the papers. He abruptly hung up the phone. He never called back.

I have not contacted them since. However, today I discovered the large sticker about the warranty in my glove box. I plan on having a talk with them tomorrow. At the least, I'll explain that I was completely mislead, that transferring to a different employee could've caused an error, that mine and my child's life has been in danger, and delaying the repair of this car has potentially caused even greater damage.

Also, I found this tidbit about purchasing as-is vehicles:

"As-is is a term used in warranty law to disclaim the seller's liability for faults in the item sold. The buyer accepts the item in the present condition, whether the faults are apparent or not. "As-is" language clarifies that no written or verbal warranties were made to the buyer and is used to protect the seller. However, the seller cannot misrepresent the item or use fraud to induce the sale."

Verbally, the dealer never informed me of the "as-is" condition of the sale.

Am I in the wrong? Is there any chance they'll actually help me? Could I build a case here, or at least get them to fix my car???
I literally just payed them in full, with cash, for a used car, and they clearly snuck this tiny detail of as-is under my nose at the last second...

jordangski · September 2012

How do I post a new discussion? Meant to post an entirely new thread, not in this thread.

bwflorida · September 2012

In 2008 I bought the GM Major Guard warranty from Black Cadillac in Illinois, and I could not be happier. I got a great price, significantly less than the price quoted by the local GM stealer, and had two expensive repairs paid by the warranty without any problem at all. If you're looking for a GM warranty, get the warranty price from a local GM dealer, then call Allen at Black Cadillac for a quote (877-472-9550, ext 302). You're gonna be pleasantly surprised.

However, that was 2008. Today, if you want to buy an extended warranty, and IF YOU LIVE IN FLORIDA, YOU'RE SCREWED! :mad:

Since my warranty is about to expire, I called Black Cadillac to price a renewal . . . but when I said I live in Florida, he told me HE'S BEEN NOTIFIED BY GM MANAGEMENT THAT HE'S NO LONGER ALLOWED TO SELL WARRANTIES TO CONSUMERS IN FLORIDA.

A call to the GM Warranty people (800-631-5590) verified this is true. If you live in Florida, no GM dealer in any other state can sell you a warranty.

NOTE: Even if an out-of-state dealer LIES and says he can sell you a warranty, GM Warranty said it will eventually be cancelled.

While I'd like to start some kind of grass-roots effort to fight this, I don't have the resources to fund such a project . . . but I do have web development and publication skills that I would volunteer to such a movement.

If there are other Florida residents who agree that this kind of purchasing discrimination is down-right UNAMERICAN, please contact me. Let's see if it might be possible to get that ridiculous ruling repealed!

mikefm58 · September 2012

IMHO, I'd say you're out of luck. Yours is a classic case of a shady sales person promising the world verbally but then having different paper work. Trust but verify. Why didn't you catch the "as is" part on the papers? READ EVERYTHING!!! That sucks that this happened to you but IMHO you have no one to blame but yourself.

mikefm58 · September 2012

Scroll down to the "Post a message" section and just type.

Kirstie_H · September 2012

We don't allow members to start new threads on this board - we used to, and it became littered with one-question discussions. When that happens, it makes it very difficult for members to find the information they're looking for. We keep similar conversation grouped in general categories, which seems to serve the needs of most of our community.

mitzij · September 2012

Did you ever get any answers from your dealer on this?
What did the warranty disclosure paper say the warranty was? (what did it cover, for how long?)

A few things you did learn:

1. always have your favorite mechanic check a used car out before you buy it.
2. if it's not on the contract you signed, it doesn't count. The car could have 'free repairs for life' painted on it, but that doesn't mean there's a warranty on it.
3. you'll usually get more straight answers from the service department than from sales.
4. twelve year old Fords tend to leak.

I hope they helped you out.

carconsultant · September 2012

In California if the vehicle sticker says "No Warranty" which means sold "as is" there is no legal recourse unless it is one of the 12 safety items which has to be operational or within acceptable limits. If the dealer withheld information that would hinder the safe operation of the vehicle, that would be grounds for a case. Dealers are bonded for at least $50,000, inform the owner or general manager, either repair the vehicle at their cost, or you're going to make a claim against their dealer bond through the Bureau of Automotive Repair. That will get their attention real quick because they could lose their dealer license and possible criminal charges against them.
The pen is mightier than the sword!

couponmagnet · November 2012

Hi,

I was sold a Zurich Optional Service contract with purchase of a new Honda. (its just yesterday).
Should I cancel it? as many forums I read sound like this is a third party warranty. (Finance guy told me this would cover electronics as well at $0 deductible and unlimited miles of towing if required).

If I have to cancel it how do I do it? I live in CA.

Whats better Optional Service contract or EW?

chucktc · November 2012

Will be the last time I ever buy a Chevy. After we made the deal we came back to sign
the papers. Their sales closer said we should add an extended warranty, that the factory
warranty was not very good. I wanted to walk but my wife wanted her car.
The closer pulls out a fuel injector he had in his desk and said the injector is 1200.00
to replace and would fail as soon as the factory warranty was over. I wanted to walk but
my wife wanted her car. The extended warranty was to cover anything and everything
no questions asked. The car was fine until we had past the factory warranty and had
only the extended (covers everything) warranty.
Well one Sunday after Church the car is in third gear and the shifter is in no gear.
We drove slow and timed the traffic lights so we didn't come to a full stop and got the
car to the dealer. Monday morning the dealer looked the car over and said unfortunately
the repair would not be covered. It seems that the shifter didn't wear out or break it just
fell apart. And parts that fall apart are not covered by the extended warranty.
I will never buy another GM car. Today I drive a Toyota and never have felt slighted by
Toyota or the dealer.

mikefm58 · November 2012

What's the difference if a part breaks versus falling apart, sounds like the same thing to me. Sounds like the 3rd party warranty company is playing games trying to get out of paying, and the spineless dealer that sold you the warranty won't go to bat for you.

I don't blame you for blaming the dealer that sold you the warranty, but there are plenty of bad dealers across all brands,even Toyota. The general consensus here is to stay away from 3rd party warranties and only go with manufacturer warranties.

texases · November 2012

This is typical of 3rd party warranties, that's why many (most?) are worse than worthless. And I've had dealers of all makes push them, so it's not just a 'Chevy dealer' issue.

It's simple: just say "no thanks" regardless of the BS reasons the finance guy comes up with. NOTHING a dealer sells at closing is worth getting. That's where he makes his profit.

fanki · December 2012

I purchased my 2011 honda accord from honda clear lake dealership on June, 2011 and got extend warranty at the same time. The next day I realized that I did not even need extend warranty and then I stopped by the dealership and had a financial manager help me signed a cancellation form and was told I would be refund in 8-12 weeks. And in Oct, 2011, I had not seen my refund and I called the dealership (cause I moved to another state) and was told I never signed a cancellation form. And they refused to fax or mail me cancellation form cause they knew I could not come by. Then finally I contacted the general manager and chief financial officer finally took my case and pretended that they were care of it and told me that I would be refund in January, 2013. Now it end of the year, I still have not get my refund and I could not find both of them. They never call me back or reply me email. Now my car is totaled because of an accident and I really need to cancel that extend warranty. Is there anyone that can tell me what can I do? Thanks in advance.

billy3554 · December 2012

The question which must be asked. If a dealer finance character tells you a car will fail immediately after the factory warranty expires, why would a person buy the car?

When a dealer finance character tries to sell me a service contract, sometimes called extended warranty, I respond by mentioning the sales person has just spent several hours convincing me the vehicle is wonderful. I then ask the finance character if he is telling the vehicle is actually no good. They don't teach a response to that question in dealer finance role playing. The reaction this elicits is priceless.

chrissy4605 · December 2012

I have a rather inexpensive extended warranty that I pay for. It is pay for through PayLink Direct payment plans. It only costs me 88.05 per month. After reading quite a bit about extended warranties on this site I am having second thoughts about continuing this coverage. If anyone can help with this into I would deeply appreciate that.

texases · December 2012

Make model year miles? $88/mo is HIGH! From who are you buying it? Can you cancel?

sherriva · December 2012

:mad: Oh, trust me, after having my car in the shop for the last 3 months straight, in order for the dealership ( chevy) to replace my engine I will never buy Chevy agagin. And No, it was not covered under warranty. Chevy sucks and so does Country Chevorlet in Warrenton VA. They will always find a reason why not use the warranty and even an extended warranty. :lemon:

kag0507 · December 2012

Hi, I know its a month later, I have a zurich warranty and I had to use it and had no issues at all. just double check to make sure your not insuring it twice.

tirednurseok · December 2012

My son purchased a 2013 Ford Mustang today. They pressured him into buying the Ford Extended Service Plan. Is there any way that we can cancel this???? He feels like a fool for letting this happen. How do you cancel this thing??????????? :mad:

fordfocus574 · December 2012

I need some help though. I am first time buyer with okay credit. The financier was telling me if I did not buy the extended warranty, my interest rate would be 12 percent but If I bought it, it would be 5 percent. Is that a scam. Do I have to purchase warranty to get that interest rate? I ended up buying it only after he told me I cancel it after I refinance. I should not have to refinance right? I should be able to cancel the warranty no matter what and get a refund on it and still keep the apr right? Thanks you guys.

texases · January 2013

It's a scam, in that he's offering a lower interest rate because of the huge profit he'd make on the warranty. I don't know about how you go about canceling, you'll have to read the paperwork. Lesson learned - if something fishy pops up, stop, walk out, leave, get away from the dealer. Did you try to get financing elsewhere (bank or credit union)?

fordfocus574 · January 2013

I know I can cancel any auto warranty within 30 days so I know I can cancel. I am just wondering if my apr will change if it does? Is this a common practice for people that have okay credit. I was stupid in not getting prior financing. I had gotten prior financing in Feburary and thought it would be similar rates but was I wrong.

pilotfunfinder · January 2013

Carchex is pretty pitiful also. It takes forever to get someone on the phone. They notch out exceptions to prevent paying for common failures like CV joints. They will not reimburse you if you need pay up front. I wish I had not wasted my money with them.
In my opinion, Carchecx sucks, Carchex is a waste of money, and Carchex has terrible customer service.

billy3554 · January 2013

If the dealer finance guy offered you a rate of 5 percent, it means you qualified for that rate with the actual lender. The dealer finance person does not set the interest rate for which a buyer qualifies. The lending institution sets the rate. Dealers will often pad that rate as they receive a kick back for the difference.

This dealer is scammed you. No finance institition requires a lendee purchase a vehicle extended service contract as a condition of loan. It is likely you really qualified for a rate lower than 5 percent. Smart thing is to check with your local bank or credit union or even one of the on-line auto loan providers, like Capital One to see the actual rate you could have gotten.

You might consider revisiting this dealership and speak to the general manager about this finance person. Not sure, but this scam might be illegal. Who knows, the GM might offer you a freebe or two to avoid possible legal action from you.

fordfocus574 · January 2013

Thanks you are really awesome. I really appreciate the advice.

pop21 · January 2013

I just bought an extended service plan from VW and they said I had 30 days to cancel. Check with Ford to see if your son has the same 30 day period. Although the dealership he bought it at may tell you no because they loss profit. Call Ford and ask. High pressure sales needs to end !!!

texases · January 2013

What 'they said' means nothing. Only what's in writing.

davidjfriedman · February 2013

If it makes you feel any better, I just signed up for a PowerShield Enhanced plan via Warranty Direct and have similar payments. I had a similar warranty on two previous cars and MORE than got my money's worth.

I take many of the complaints about Warranty Direct with a grain of salt. Many people purchase these plans without reading the contract, and then they get mad when something isn't covered (even though it was clearly stated in the contract).

I think it all boils down to preference. Would it be better to just open a savings account and put $100 in it each month? Maybe--depends who you ask. What I will say is that Warranty Direct IS legitimate, and they have paid out THOUSANDS of dollars toward my repairs over the last few years. The only complaint I can possibly think of is that sometimes, late in the day, their claims dept didn't get back to my mechanic, and I ended up having to leave the car overnight. Ultimately, they always paid, though.

iflynride · February 2013

In the past couple of months, my 2008 Scion Xb with 70,000 miles on it has needed one rear brake caliper and both rear wheel bearings.

In the two separate service incidents at my local Firestone dealer, they authorized both repairs, paying 100% of the costs. This would have cost me almost $1,300. I paid $975 or so with tax for the warranty from my credit union. I couldn't be any happier, unless the repairs were not needed, and I could qualify for a refund of an unused warranty!

I have almost 2 years and 30,000 miles left on this thing, and it has paid for itself in about 45 days!

58carguy · February 2013

MY Son, An ARMY enlisted man, purchased a 2006 Dodge Ram 1500 with 62K miles, financed via MILES with $2000 of the loan for an extended warranty via Warranty Solutions (under Wachovia Management Corp, now part of Wells Fargo). He put 30K miles and the engine destroys itself. He changed oil every 7500 miles, and had proof: but when the engine was torn down for inspection ($675 labor at a Dodge dealer) for the claim, shellac is found everywhere. The oil pickup tube has loose metal (bronze and steel) shavings over it (however oil/air flow thru it). All from the timing chain breaking and disintegrating it's guides, ,which made the pistons hit the valves, etc. shutting the engine down.
The truck was at speed when it happened, so much more damage than had it been at idle.

Warranty Solutions response: "we see shellac or sludge, we deny" . Contract doesn't say "see" anywhere, it says "caused by". Two mechanics doing the tear-down agree that no sludge was involved and that the 'shellac' on the oil-splashed surfaces is typical of a hot engine at 90+K miles (all 'friction' surfaces were pristine, including piston walls, and rod bearings checked).
So son files a formal appeal request, with a detailed rebuttal of the garbage from the 'inspector', and Warranty Solutions says they will send another inspector. They don't, instead sending the same guy out, to signoff on his original report (cover himself), all while the Dodge mechanic is showing him otherwise.
So now my son must put $7000 into a remanufactured longblock install, on a truck he is still paying on. That includes the $675 in labor charges for the dealer to do the tear-down for the inspection!
Bad enough that my son doesn't make enough to be above the US poverty level, but to get the 'shaft' from a company that was "servicing" mainly Military members is just sad. He survives Iraq, with a wife and newborn back home, only to come back and have this happen.
MILES (www.usmiles.com) should stand up for the products they market and package with their loans (at 17%apr btw).
Wells Fargo (now the parent of Warranty Solutions) clearly is concerned more about conservation of their wealth, rather than providing a service they were paid dearly for.

In the end: putting away a nest egg for repairs and keeping it growing during every car you purchase is a good idea (at least until the NEXT emergency comes to take it all away).

Beyond extended Warranties with a Manufacturers name on it, these others (if you are talking about small stuff) will probably honor repairs. But really Big stuff? They will go out of their way to ensure that THEY do not pay out a dime.

ken117 · March 2013

Good story which demonstrates why most "experts" advise against an extended warranty, really an extended service contract as only the OEM can issue a warranty. Dealer Finance and Insurance people are well trained in how to persuade customers to purchase high profit items such as these.

As you indicated, people would be much better served if they simply put the additional monthly car payment which would result if they purchased an overpriced service contract for the dealer and into a bank account to be used if needed. Of course, if there are no repairs the buyer has the money rather than the dealer.

Also anyone interested in an extended service contract should indeed only buy one from the OEM. Also, those contracts which are sold at the time the vehicle is purchased are greatly overpriced. Usually, they can be found on line from a dealer at a much lower cost.

texases · March 2013

"A reporter is looking for a new car buyer who is financing their car for 84 months or longer."

A.K.A. "Debtor-for-life"...

ken117 · March 2013

Financing for 84 months is not necessarily a bad thing. It depends on the interest rate. A person can always pay more each month effectively reducing the term. A lower required monthly payment coupled with paying off the loan ahead of time can be very helpful if a person has a short term cash flow issue.

Kirstie_H · March 2013

True, it can be a good solution as long as you honestly think your cash-flow issue is short-term, AND as long as you have the discipline to pay extra each month once the cash is available. Otherwise, the additional years of interest and lack of progress in paying off principal can be a real shocker, especially if the owner wishes to trade-in prior to paying off.

Last time I paid cash, but otherwise, I usually take out a 5-year loan with payments I know I can comfortably afford, even if I have a (not totally drastic) change in income. I then pay $50-100 extra each month. That plan fits my comfort level better than a shorter-term loan.

sbuhler · March 2013

I am looking at the following two choices for a vehicle service contract on my 2010 Saab that does not have a factory warranty due to Saabs bankruptcy.

My 2 options are:
1. Saab Secure Warranty backed by Allstate Dealer Services (administered by Pablo Creek)
2. Service Shield backed by Amtrust Financial (administered by Royal Administration Services)

Both of these plans that I am looking at are exclusionary (OEM-type) policies. # 2 is somewhat cheaper than # 1.

What are your thoughts?

Thanks!

skyfan1 · March 2013

I am just adding to your question; don't have an answer. I have a Nissan Altima that is about 30 months old with about 14,000 miles on it. I am wondering if I can get an extended warranty or not. I am still undecided about it. I notice most people say if you have a Honda or Toyota they are really reliable. What about an Altima?

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