Extended Warranties

driftracer · February 2005

"I think you are confusing third party and web based companies"

I was dealing with third party warranties when the only "web" people knew of belonged to a spider.

Additionally, my "broad brush" comments are based on writing literally THOUSANDS of dealership repair orders and handling hundreds of third party warranty claims.

audia8q · February 2005

the fact remains....do you risk your money with a company who's profitability hinges on not paying claims?

To the aftermarket warranty company the consumer is an expense after the sale....to the car company the consumer is always a potential future customer who needs to be satisfied.

driftracer · February 2005

Kirstie_H · February 2005

Personally, I wouldn't recommend a 3rd-party warranty as a first choice, but a manufacturer-backed warranty doesn't fit every situation. Some manufacturers won't offer an extended warranty long after the manufacturer warranty has expired, or at so high a cost as to make it prohibitive for most people. Or, if one has a favorite independent mechanic close by to whom the 3rd-party warranty company makes direct compensation, that could be a factor.

In the case where you've clearly determined that a 3rd party warranty is the best option (not just the cheapest option), do your research carefully and read the contract before signing.

driftracer · February 2005

Yes, and look strongly at specifics like, can they install used or salvage yard components (many allow this); do you have to pay up front and get reimbursed; what's the adjuster/inspection process for a major repair; how are rental cars authorized; and who takes this plan without major billing issues, in other words, is anyone set up to direct-bill?

racer_x_9 · February 2005

When I purchased my Intrigue new 6 years ago, I was offered a 3rd party warranty from the dealer. He quoted my one price and I countered with I price I got online from warranty gold or some other internet place. He matched it immediately.

In 1998 I paid 1250 for a 100k 7 year warranty bumper to bumper. It has a $50 deductible but that is waived ($0) if you bring it to the dealer who sold you the warranty.

It is called "The Plan" from Global Standard Warranty. I think they may have been bought since 99.

Anyway I have never had a problem and have gotten back $1800 in repairs on it with 10 months left.

Never have to pay first and get reimburse. I think if you KNOW you will keep your car for 7 years, the extended warranty is the way to go.

I know shelling out around 1500 hundred at the time of purchase is not something everyone can do, but it worked out for me.

Labor rates were $45 when I bought the car and are $95 now!

nancyw · February 2005

I bought a warranty backed by Ultimate warranty corporation through Warranties for wheels and they were great. Paid the claim direct to my dealer Sanderson ford, and the intake manifold gasket was completly covered. I hear horror stories through the forums and thought I would inject some positive info.

ahlus · February 2005

I have been looking to get an extended warranty for my Jaguar XK8. There are no Dealers nearby I looked around and found "1 Source" who had a really good warranty but I am now finding out that they are really selling a warranty from National Services, Inc. who I believe is bankrupt. Does anyone know about this and can make any suggestions?

audia8q · February 2005

I agree there are some situations where a MFG ext. warranty isnt available....but is it reason enough to gamble on an aftermarket warranty??

I think most consumers would be better off taking the cost of the warranty and stick it in a savings account and be their own warranty company...

Kirstie_H · February 2005

That's what I would do, personally, but for some people, having that "net" there helps them sleep at night.

The problem that most consumers encounter when purchasing a 3rd party service contract is that they rush into the purchase based on what a sales rep has told them over the phone, or what they've read on a website, and then they're surprised when it's not all they thought it would be.

If you don't have a couple of days to read over the contract and check whether it's right for you, then it's not a sound financial decision.

I've never purchased an extended warranty or service contract myself. But, if I still had my 2000 Jetta, I'd certainly investigate it!

ahlus · February 2005

thanks I actual have Ultimate bookmarked. Does it cover much of the electrical and how long is your warranty good for.

ahlus · February 2005

Kirstie are you aware of any of the companies that might be good to look into. I have looked around a lot and am finding it quite confusing. So of the company have rather good policies like National but if they are going under what good is the policy. I need someone who will cover my car and be there for the life of the policy. Is that asking too much?

audia8q · February 2005

just read in an auto trade paper that some of the folks associated with a big name warranty failure last year (not warranty gold, but another one) are back in business under a new name...wonder how long they stay in business this time before they vanish?

Kirstie_H · February 2005

Nope, no idea! As I said, I've never purchased an extended warranty or 3rd party service contract, and I probably wouldn't do so - I'd rather save the money and be "self-insured."

nevadakid · February 2005

My opinion: AVOID THIS COMPANY!!!! Constant lies and a big run around. Spend the extra money and get the manufactures extended warranty. This company is AWFUL!!!!!!!!!!

Kirstie_H · February 2005

Members don't tend to respond well to generalizations - giving us details of the problems you've had with this company will help others make an educated decision.

Many of us also recommend manufacturer-backed warranties, so I guess at least you've learned a lesson.

ahlus · February 2005

Please if we may the subject is Extended Warranties and how can I find one. I have learned that Warranty Direct has almost no problems on the Better Business Bureau. That is good but they are so expense and offer the least coverage, plus they require a pre-inspection that cost $90. Earlier one person mentioned Ultimate and there are not many complaints in the BBB and their coverage is good but the best in the cost is low. So there must be something wrong? One company that had a number of complaints against it in the BBB was 1 Source. I think for now that the BBB is the best guide I have.

klbrmb · February 2005

Has anyone had any experience with DC Jeep Warranty? I had a liberty that I traded in back in November 2004 and also canceled the warranty prior to this. I received the check in the mail and it is much less than what I think I should have gotten back. I have tried to call three times today and get a better understanding. However, when I spoke with the customer service person she could not explain the calculation and put me on hold three times to get a better understanding. When she came back and still could not provide me with a better understanding I asked to speak to a supervisor. She then hung up on me. To make a long story short I finally got a hold of someone and they are sending me a letter explaining benefits but I don't think that will explain it either. They are telling me that I used 86% of the warranty. Here is the info.

2003 liberty purchased 05/2003

purchased a 5yr/70,000 mile warranty 05/2004 with 15,000 miles on jeep (price $1,044)

canceled 11/2004 with 22,250 miles on jeep (pd in $389 toward warranty cost)

Refund check received $77.00

I can not for the life of me figure out how they got 86%. No matter whether I calc. from the purchase date (18/60months) or whether I calc using the mileage(22,250/70000) I only used approx. 30%. Anyone have any ideas?

ahlus · February 2005

Hello have you check with the BBB. If you don't like it lodge a complaint with the BBB. If they are a member they should response. You may also just let them know you are going to lodge a complaint. First i would check with the BBB and see what their track record is. Good luck

rda27ne · February 2005

I purchased a GM extended warranty for my 2005 Buick LaCrosse for $1575 for 72months/60,000 miles/$0 deductible. I made the mistake not to shop around and discovered this price to be very high after looking at quotes from James Black Pontiac/Cadillac website. The thing that I want to do, but cannot, is cancel my existing agreement and buy another GM warranty. GM clearly states that you cannot buy another GM warranty for the same vehicle. With this in mind what other option do have other then buying a third party warranty?

Kirstie_H · February 2005

Obvious option: Keep your existing GM warranty.

You made a mistake that caused you to pay a higher price. The best thing you can do now is consider it a lesson learned.

boomer1b · February 2005

Smile and ride happy !

Remember down the road long after the warranty price is forgotten. 1 trip to the dealer for a $pendy ECM, ABS computer, even a transmission repair that warranty will pay for itself !

Plus you have a GM backed warranty that PAYS for just about everything that your car may require.

Plus no worries about IF its covered and GM WILL be in business when you need it!

Too many 3rd party companies have went belly up to risk your $$$$.

151ranch · February 2005

I think you used even less than YOU think. Because they can't charge you for the mileage and time already used when you bought the service contract. You should get this:

Mileage used: (22250-15000)/(70000-15000)= 7250/55000 = 13% and I imagine the equation by time would be similar although we need the in-service date to figure that out. Most states limit the cancellation charge to $50 or less. However, it is unclear whether you were paying over time for the contract (I'm confused by the $389 reference).

If you bought from a dealership, call them first and ask them to explain.

Good Luck

humblirock · February 2005

There is this 3rd party warranty program out there called "Premium 2000 plus", run by a company named "Gateway Management Services Limited". It is a scam. Stay away from these guys. They will lure you into buying their warranty program at $1000-$2000, covering engine and transmission. When your vehicle really runs into engine or transmission problem, they will give you 10000 reasons to deny your claim. Be aware.

sogvet1 · February 2005

I have a 2004 VW TReg and the dealer only offers JMA which is probably one of the worst. I have developed a friendship with the service manager who recommends telling him the name(s) of 3rd party warrantiers and he will give me the scoop on his dealings with that company based on over 25 years with service. Try it at your local dealership....Hope this helps

driftracer · February 2005

The dealer doesn't offer a VW service contract?

There are very few situations where I'd EVER recommend an aftermarket service contract, and a brand new, very complex model from a manufacturer known for problematic vehicles is NOT the vehicle I'd chance buying a "warranty (not a warranty, by the way) from www.xyzwarranties.com....

big_cat · February 2005

I just bought a 04 Mazda B2300 truck.

It comes with a 4 yrs warranty.

My question is the 4 yrs start from the purchase date or the manufacture date?

Do anyone could tell me?

Thanks in advance.

mitzij · February 2005

Warranty starts at purchase date. I'm not sure about Mazdas, but on GM cars, warranty also starts at current mileage on date of purchase. (if mileage is 24, warranty ends at 36,024 miles)

big_cat · February 2005

Thank for the reaponse.

But how would the dealer know when I bought the car.

I guess do they have all this information in their system?

What if I sell this car couple of year later.

Thanks,

mitzij · February 2005

For GM, there is a website all dealers can access. I enter the vehicle ID number and get build info, warranty status, if there's a GM service contract on it, etc. I believe other manufacturers have a similar system.

rustyjrbaby · February 2005

I've gone to dozen of internet site that offer "Extended Warranty" which is the BEST without the high cost. I need coverage for my 2000 BMW 323I - with only 40,500 miles..looking for a 48/48K coverage or better.

jeff petrone · February 2005

Ahlus,

How do they offer the least coverage? Also, if you owned a company, how could you possibly warranty a vehicle without inspecting it? These practices ensure the stability of the company and their ability to pay your claim. As I say, you always get what you pay for. The difference over the life of the contract is quite minimal in respect to the uncertainty of the companies future stability.

driftracer · February 2005

a shill bidder on ebay...or an employee of an aftermarket service contract company.

"These practices ensure the stability of the company and their ability to pay your claim."

This should read "the practice of taking your money, and then denying claims ensures the stability of the company and their ability to remain profitable"

jeff petrone · February 2005

That COULD be an accurate statement, but wouldnt you agree that there is an exception to every rule? A company would not be in business for decades if they never paid claims.

rustyjrbaby · February 2005

Who offers "Ulitmate" that you mentioned? Which insurance carrier is good??

American General?

Western Genreal?

Wynn?

Guardian?

others???

driftracer · February 2005

"Most dealers don't offer manufacturer warranties"

EVERY new car/truck dealer in the nation HAS to be set up to sell the manufacturer's warranties as part of their franchise agreements. I don't know where you get your information, but it's incorrect. They may try to sell an aftermarket contract because it's more profitable, but all you have to do is ask...

"Dont believe everything you read..."

I believe very little of what I read, actually. What I do believe, though, is my personal experience as an F&I manager and a service manager, having closed over 10,000 car deals and written and/or administrated over 20,000 repair orders.

I cannot and will not recommend aftermarket service contract companies, period - these aren't "warranties", by actual or legal definition, and these companies simply do not have the consumer's position as their best interest.

Denny Crain.

(just a little joke, I like the show "Boston Legal", as ridiculously unrealistic as it is)

driftracer · February 2005

I can't believe what you're posting. No need for all the disrespect.

Hers's the legal definition of a warranty as prescribed by Congress, and what I use in my daily position:

Warranty  the promise by the vehicle manufacturer and/or selling dealer to repair at no charge, vehicle conditions/defects for a predetermined period of time and/or set mileage. A consumer has the reasonable expectation that the vehicle will be free of significant defects during the term and/or mileage limitations, and may rely upon prompt, effective and courteous repairs if required during the term.

"By definition, ANY company or manufacturer extending the factory warranty then becomes an aftermarket product. "

Offered after the sale, and being an aftermarket product are two different things. Factory backed warranties extende the factry warranty and are backed by the vehicle manufacturer. Additionally, state lemon laws and the Magnusson-Moss Warranty Improvement act have controls over the manufacturers when factory extended warranties are in place, the same doesn't exist with private service contracts.

A private service contract is an insurance policy, not a warranty, by any means. A warranty is a promise to fix your car, period, during the warranty time (not withstanding UCC guidelines for "implied warranty of merchantibility" claims) - private service contracts only promise to pay claims, IF those claims meet their guidelines, and IF their adjusters allow it to happen. They could give a rats patootie about actually reapiring the car or consumer satisfaction, because they aren't liable for either.

I'll be glad to debate this further with you on a respectable level, but your comments about me being uneducated in this matter are completely ridiculous. I suggest you understand the level of what I deal with on a daily basis before thinking I'm an amateur.

driftracer · February 2005

you've been on Edmunds a whole TWO days, and you're taking someone with 15 years in the car business, and 4 years as an expert witness in automotive law/warranty cases, and calling him uneducated?

The nature of your comments is beyond my comprehension.

jb_turner · February 2005

Just because a person has been in the car buisness for 15 years does not mean he is knowledgable or educated... however I can say that in the short time I have been here and reading posts from driftracer that his posts are VERY informative, knowledgeable, credable and usefull. I do not know his education background but driftracers posts are also educated, reasonable and factual.

Kirstie_H · February 2005

No need for all of the hostility here. It's a plain and simple fact that a true "warranty" can only be offered by the manufacturer of a product. A third party does not have the authority to "warrant" a vehicle from defects. It's not possible.

A service contract or maintenance insurance policy can be offered by a third party. The third party does not have the authority to extend the manufacturer's warranty. It doesn't belong to them; therefore, they can't extend it.

Kirstie_H · February 2005

I'm not talking about how comprehensive the coverage may be - I'm simply stating that it is only possible for the manufacturer to extend the warranty.

While it may be *possible* for a service contract to offer more coverage than a manufacturer's extended warranty, we've seen more stories about third party providers that don't pay, or aren't accepted by repair shops, or go under, than we have for manufacturer-backed products. Additionally, many of them require the customer to pay up front and request reimbursement rather than direct-to-provider pay. This can make the third-party products less attractive, obviously.

There's a parallel here - you may wonder why many of us are siding with driftracer's points. That's because he's been around here for years offering valuable and credible advice, while you've only been here for a couple of days. In itself, this does not make you less credible; it only states the truth that people are more likely to trust something they know, through experience, to be trustworthy. We don't "know" you, and therefore it takes awhile to build credibility and trust.

The same applies to manufacturer warranties and third-party products - we've seen third-party companies come and go, but manufacturers have been around for ages.

Also, we've had very few members recommend third-party products who don't currently sell them. I don't know whether you do or you don't, but this interest could make other members skeptical.

Kirstie_H · February 2005

No one product is right for every individual, and we've said it dozens of times - evaluate your own situation, read any contract thoroughly before signing, and research any company with which you're planning to do business. This includes talking to others who have purchased the product, and talking with your preferred service provider to see whether they accept the policy.

There are a number of factors that go into making a decision about which product is right for any individual, and we hope the consumers reading these boards will learn to evaluate the up- and downsides to products offered prior to purchasing. I hate to read stories of buyer's remorse, whether it's a manufacturer-backed policy or a third-party product.

driftracer · February 2005

This is the last I'll say on this, since anyone with a computer can cut and paste stuff into a forum - what matters is whether what you're dropping in is relevant and accurate or not.

Disrespect? Yes - I don't think this:

"I look forward to another uneducated response."

was meant in any other way that might allow interpretation that you were being complimentary.

I'm always around - if anyone wants information or experienced advice on extended warranties, let me know. I'm not here to be called names or get dogged.

Kirstie_H · February 2005

Let's just all relax, here. We'll try to state the facts from here on without carrying it to a personal level. Any more posts that have personal comments will be zapped without warning.

driftracer · February 2005

I've done it before and I can do it again, I'll be glad to discuss the pros and cons of service contracts.

cadillacmike · February 2005

That's a great web site. It's called GM dealerworld. I recommend anyone considering a used GM to insist that the sales mgr print out and show / provide the summary and build reports. Great info. I went through over 20 reports while sreaching for my last car, all cooperatively provided by the sales mgr! He even offered to run cafaxs on some of them.

murphyws · February 2005

I have a two year old Suburban and am considering purchasing an extended GM Manufacturer Warranty. I received an offer from GM in the mail and would like to do some comparison shopping pricing research before I decide to purchase. Where can I find a list of authorized outlets that sell the extended GM Manufacturer Warranties? Which outlets have the reputation for consistently selling the warranty at the lowest possible price?

driftracer · February 2005

Check the website referenced in the post right above yours.

chongkee · February 2005

just to check the veracity of the "am best ratings" claimed by some warranty companies, i went to ambest.com and put "warranty" and "1source" in the blank. apparently neither warrantydirect or 1source are registered.

anyone else try this? maybe i just did it wrong. hope the warranty companies aren't flat-out deceiving us.

CarMan@Edmunds · February 2005

Hi murphyws. You should be able to purchase an official General Motors extended warranty from any GM dealer in the country. I have come across a couple of dealers that provide very attractive pricing on official GM extended warranties over the years. They include Black Pontiac / Cadillac and Charles Capper Auto Center. Try e-mailing them for a price quote on the level of coverage that you are interested in. Once you have an attractive price quote, see if the dealer that you plan on having your car or truck serviced at will match or beat it. while you don't have to purchase your vehicle's extended warranty from the dealer that you plan on having your service work performed at, it never hurts to do so.

Car_man
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