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Understanding Extended Warranties

Edmunds.comEdmunds.com Posts: 10,112
edited September 2014 in General

imageUnderstanding Extended Warranties

Get the facts on extended auto warranties -- service contracts that can cover car repairs after your factory warranty expires

Read the full story here


Comments

  • jeet1jeet1 Posts: 1
    I have Honda Care for 120k miles / 8 years. Just this week I took the car to the dealership for the second time to ask them to fix the issue with the transmission. The manual transmission does not always shift into the the third gear smoothly.

    The first time when I took the car in the mechanical advisor was not able to reproduce the problem. The second time we were able to. However, the service center cam back and said that American Honda wants me to bear the cost of the tear down for the transmission which is north of $2,000. I am stumped.

    What do I do? My car is extremely well maintained and attended to by this dealership, but they refuse to do anything unless I approve this expense.
  • cpo3cpo3 Posts: 6
    I also have the Honda Care 120k/8 year and it is the most useless extended car warranty I have ever owned, every time you take it to a Honda Dealer to get repaired they find some excuse to keep you from using it, Honda Care= Ripoff.
  • What about extended warranties due to recall on Ignition coils if they dont specify which coils then does that mean all coils should be replaced at time of recall extended warranty repair? I took my 2005 Lincoln LSE in to the dealership for the recall repair because it was misfiring, but they only replaced two of the 8 coils now here I am less than a year since repair and two more have gone out and I am no longer in extended warranty coverage are they responsible since they did not do it during first repair. It did not specify coils on certain valves it said recall on ignition coils in general as i took to mean all of them should have been replaced when the first two went bad
  • I bought a used 2005 ford freestyle in january 15, 2009, we then also bought the premium extended warrenty in which they told us was 72 months or 100000 miles. When the motor blew up in my car this july I called to check on the warrenty and they told us that it expired in march. We sent $1500. on this extended warrenty that lasted 2 years. I guess we are very confused on how it extended warrenty works. Can someone explain. Thanks Tina Knotts
  • Hi jtknotts,

    Looks like you had coverage up to 72 months or 100,000 miles; the way it works is, coverage expires whenever either of these milestones is reached. Do you have 100,000 miles on the odometer? If so, this would explain why coverage was denied, even though the full 72-month term hasn't ended.

    Warren
  • warhogwarhog Posts: 1
    I just saw your issue. Probably too late to help. However, maybe someone else has a similar problem. You need to escalate your complaint. Ask to see the District Manager (I am a retired D.M.), if he won't help, ask to have a conference with the Zone Manager, then write a letter to the Service Division Vice President. Remember, the higher you go, the less they like "heat." If you have serviced your car regularly per the Honda recommendations, I would be very surprised if they did not cover the issue.
  • glam1glam1 Posts: 8
    How can one calculate whether or not an extended warranty is priced too high?
  • I just wanted to know that is there any difference between a used car warranty and an extended car warranty?
  • My 2012 Toyota-Prius was 'total' on an accident. The Extended Warranty Service contract specifically says that I have right to a refund. The mileage at time of the accident was 14.766. I submitted the required paperwork to Toyota-dealer and after a month pass I send an email to the financial manager followed by multiple phone-calls. To this date no one has communicated with me. What to do???
  • I purchased a 2008 BMW 550I and I got an extended warranty that cost me over $2500. Since purchasing, I have had to get some repairs that cost around $1400. Even with the extended warranty, I still had to pay about $650. I think that was too much to have to pay but my mechanic said that it is a pretty good warranty compared to the ones he's seen. Well after a little bit of research, I found a low cost month to month warranty that covers any vehicle with less than 200,000 miles with only a $100 deductible. It covers pretty much everything....I wish I would have know about it before I dished out over $2500!!
  • @mr_research would be very interested in hearing who you go through for your month to month warranty coverage - struggling to pick someone and any assistance would be appreciated.
  • What is the name of the company with the low cost month to month warranty?
  • steverstever Posts: 52,462
    Smells like spam to me but someone forgot the spam link. B)
  • I purchased a 2012 Nissan Frontier 4X4 in January 2013 33K vehicle. Love the truck. Only have 50K on it and the Leaf Spring broke and the clamp that came off punctured the shock. I took it to Nissan and spent 3 hours there and they went over it several time and told me that they DID NOT seen any indication of an impact. I didn't hit anything, speed bump, pot hole, etc. It just snapped. I took out the extended warranty when I purchased the truck, but they tell Nissan that it's not covered. Is there any recourse that I have any suggestion would be appreciated.
  • I am curious about using a company that charges by the month for the warranty or the term type of warranty. CarShield does a month to month warranty. Where concord does a term warranty. Which is the better deal? I have almost 100,000 miles. I like my car. I don’t want to buy a new car. I want to drive my car for another 3 years at least. Which type of coverage should I use.
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