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Extended Warranties

98monte_ls98monte_ls Posts: 117
Does anyone know of a **reputable** company that sells extended warranties, besides GM? They sell them at the dealership I believe so long as the car has not hit the end of the mfgrs warranty but I'm sure GM"s price must be higher.

I have a Camaro and plan to keep it beyond the warranty which will end soon (due to miles) so I need to shop for this asap.


  • zueslewiszueslewis Posts: 2,353
    at the Heritage warranty subject. I've discussed some pros and cons of aftermarket warranties.

    I believe, through LOTS of experience, and now dealing with lemon law and breach of warranty lawsuits, that the manufacturer's warranty is the only way to go.

    Shop around. Offer $100 over cost and by it cheap.
  • 98monte_ls98monte_ls Posts: 117
    I was hoping to find one cheaper than the delaership - they always stick it to you on price. How do i find the "cost" of a dealership's warranty? The price they quote is "retail" in fact, my dealership had a printed price list "menu" of warranty options.
  • zueslewiszueslewis Posts: 2,353
    "I'm going to buy a warranty today. I'd like to buy a GM contract. If you'll show me YOUR cost (not what's on the "menu"), I'll pay $100 over that."

    "I've also looked at some other contracts, and I'm making my decision today".

    Be nice about it, but give them a "take it or leave it" approach.

    $100 in F&I profit with no affect on his "per deal" average (how the F&I guy is rated by his boss) is a good thing.
  • Hey 98monte_ls. Don't forget that you are free to shop around for an official GM extended warranty. You are not required to purchase one from the dealership that you purchased your car from or the one that you plan on having your vehicle serviced at. You should comparison shop by either e-mailing or calling dealerships. You can contact many of them with very minimal effort by using the Web. Here is a link to a pretty interesting article on extended warranties here on Extended Warranties: Extending The Joys Of Ownership.

    Smart Shoppers / FWI Message Boards
  • geoffdgtigeoffdgti Posts: 83
    I mostly agree with zueslewis. An OEM extended warranty is the only way to go.

    For GM, try these guys in Iowa:

    I've bought two Ford extended warranties from their sister Ford dealership and, at least for Ford extended warranties, they have the best prices I've ever seen. It's an 800 number so it can't hurt to at least call and get a quote.

    You probably want to decide what plan you'd want first and get a price-gouging quote from the business/finance guy at your local dealership. has some limited information but you really need to see a contract to understand what is covered and what isn't.
  • zueslewiszueslewis Posts: 2,353
    ask to see the F&I guy's cost sheet, and make your offer. Who pays retail anymore?
  • quigonjohnquigonjohn Posts: 77
    geoffdgti, or anyone else, do you know of a good source for a low price on a Chrysler Extended Warranty? I have WG now, (bought the car and warranty in Feb.), but with their financial troubles I may want to go for a Chrysler policy.
  • zueslewiszueslewis Posts: 2,353
    and make the same deal - offer $100 over their cost after they show you their price list.
  • quigonjohn mentioned that Warranty Gold has financial troubles. Is that right? What kind of troubles?


  • quigonjohnquigonjohn Posts: 77
    tiresmokem, Checkout the "Warranty Gold Claims" thread for all the info.
  • 98monte_ls98monte_ls Posts: 117
    I got a "retail" quote from my dealer. $1650. Now if I go into the F&I guy and tell him I will buy today if he can show me his cost I need to be prepared to do just that. do you have any idea what ballpark the "cost" is off retail? Reason is, if his cost + 100 is still not going to be competitive with a 3rd party warranty then maybe I'll forget about the dealer.

    do you think that I should tell them that I got another quote on a warranty and if he can match it i will buy his? I got a couple, one from WG, which are significantly less than $1650.

  • montanafanmontanafan Posts: 945
    GOing by the dealer later to see my brother's new Grand Prix. Which warranty/mileage/term/deductible where you thinking of for the Camaro.
  • 98monte_ls98monte_ls Posts: 117
    the 5 yr 75k (i think that's the one) and $100 ded.
  • 98monte_ls98monte_ls Posts: 117
    Anyone heard of this one - called Extended Auto Warranty Corp. insured by Capital Assurance?

    their warranty is nearly as good as the mfgr warranty, but with GM it will only "extend" my coverage to 5 years/75k, which is only 3 more years/30k more miles. Extended Warranty Corp has one that they say begins when the mfgrs warranty expires and goes for a full 5 years/100k miles which is 2 years longer and 25k longer than GM. I plan on keeping the car long, unless I get a really good job which I doubt I will in this job market.

    GM's so-called 5 year warranty is mis-represented because you are ONLY buying 2 years - the full car is covered until 36k for FREE no matter how many $1000's you pay for their warranty.

  • zueslewiszueslewis Posts: 2,353
    you're also just buying what's past the basic warranty.

    Private "warranties" aren't "warranties" at all - they're insurance policies. Policies that have no legal liability to repair your car - at all.
  • ffmcobaltffmcobalt Posts: 20
    I believe you are able to purchase a GMPP as long as the original, factory warranty is still in effect. If I recall correctly, that means that you can buy a 7yr/100K-mile warranty up to 36 months after your purchase or up to 35,999 miles driven. You aren't required to buy the GMPP when you first purchase the vehicle. That would make the first three years and 36,000 miles pointless.

    I'll go look for confirmation because warranty work isn't my department at work, but I'm pretty sure.
  • zueslewiszueslewis Posts: 2,353
    is a cheaper price (negotiated with the dealer at your best price vs buying from GM on a menu (retail) price) and rental car coverage through the basic warranty.
  • KCRamKCRam Mt. Arlington NJPosts: 3,516
    It also allows you to finance the contract into your car loan if you don't have the cash or credit card space available. Pre-Daimler, Chrysler Financial would discount financing rates if you also bought a Chrysler service contract up front and added it in with the loan. Saved me 2 full points in 1996, don't know if CFC still does it now.

    Smart Shopper and FWI Message Boards
  • MartypaMartypa Posts: 50
    Would you then recommend not buying an extended warranty if if unable to get it OEM?
  • zueslewiszueslewis Posts: 2,353
    you'd be better off taking the money you would spend and put it in savings in case of a breakdown.
  • MartypaMartypa Posts: 50
    After reading through the info here and reading a few third party contracts, I will be doing just that!
  • zueslewiszueslewis Posts: 2,353
  • autoxpertautoxpert Posts: 4
    I have read some of the advice offered by so called experts, and I wish people were telling the whole truths. 1st) All "extended warranties/service contracts" are backed by some form of insurance, whether the its a TPA or a factory plan. 2nd) The difference between TPA's and Risk Retention Groups (ie, National Warranty Inc, Capital Assurance, etc) is that reputable companies have fully insured contracts that absolutley OBLIGATE the administrator to pay claims on the contracted vehicle. 3rd) More often prices from reputable TPA companies are close in price to factory plans, and even can offer more benefits (ie. roadside assistance, trip interuption reimbursement,etc.). I would expect that those who claim to lead discussions or have expertise give proper information. If the company is reputable, financially solvent, and has a good claims history, you will have the same piece of mind if it was covered by the factory!
  • zueslewiszueslewis Posts: 2,353
    These private companies are under no obligation to comply with the Magnusson-Moss Warranty Improvement Act. None at all.

    Without that compliance, you have no "warranty" - you have no legal recourse, at all, if a claim is denied, if they use "used" parts (happens all the time) or if your legal issues are tied into a lemon law/breach of warranty claim. They are insurance policies, set by their own rules, and if they don't take care of you, you have NO recourse.

    Before you get any more disrespectful, please understand that my whole job is reviewing breach of warranty and warranty compliance cases in 3 states and at the Federal level.

    Additionally, most private "warranty" companies aren't signed up with many dealers, so the dealer has to jump through hoops just to get your claim handled. Doesn't bode well, if you expect to in the front of the line.
  • autoxpertautoxpert Posts: 4
    Not being disrespectful, just explaining the facts. There is no such thing as an "Extended WARRANTY". By law Mag/Moss, no retailer or TPA can "extend a warranty". Whether a customer purchases a factory program or a TPA program, they are only buying a "SERVICE" agreement/contract. The industry term of "Warranty" is used in- correctly. And as you know, "Warranties" can not be sold to customers, only "Tie in" service agreements", which by the way are covered and protected under magnusson moss act. Product, or Merchant warranties, offered to customers, in conjunction with buying a, vehicle are at no charge to the customer. As for the "service agreements", these agreements spell out in the defined contract language, all that is covered, all types of parts, limits of liability, what the owner is entitled to for benefit and recourse, what INSURANCE company is backing the obligations of the administrator, and whom, within in their state to contact if claims are not handled according to the service agreement. Now companies of RRG (NWIC) backing do not have any compliance to these laws in which Federally and Nationally filed and approved Insurance programs offer. I have seen GMAC/Chrysler/and Ford use parts replacement with language stating "like, Kind and Quality" = Used or Remanufactured parts.

    Now I am now discrediting your "expertise", using the term "warranty" incorrectly, and making false statements does not bode well for dealers and Service Contract companies who present/offer/and fulfill their coverage obligations. My credentials are on a national basis, both Federal, State, and International jurisdiction. I work with the Factory Programs, and 9 major Independent Service contract Providers. And By the way...Out of the 24,000+ Franchise dealers in the US, 75% have both Independent and Factory "SERVICE CONTRACTS" being offered by their finance representatives. Again Fact vs. Fiction... Please be honest to the people who use this site for resource purposes.
  • zueslewiszueslewis Posts: 2,353
    The GMPP, ESP, and DCC warranties are backed by the company that manufactured the vehicle, not an insurance company.

    Mag-Moss is very specific in that ONLY the company that MANUFACTURED the product can he held liable for its warranty.

    Any "warranty", other than backed by the manufacturer, cannot be inforced, even if considered "in breach".

    Please take the hostility out of your postings and I'll do the same.

    "autoxpert" - how's that? Have you ever been certified by a state or federal court to testify as an automotive expert? I have, 191 times, although I don't come here hanging a name like that in order to brag.
  • I personally believe that consumers do not need extended warranties at all. The companies that offer these policies are not in the charity business. They obviously are charging more money for their policies than they have to pay out in repairs on average or they would not be able to remain in business. Having said this, many consumers do enjoy the peace of mind that extended warranties provide. In these cases, I personally always recommend manufacturer-backed extended warranties. Manufacturers are much more likely to stand behind their products to keep their customers happy and loyal than some random third party that has no vested interest in them. I can't tell you the number to stories that I have seen from consumers who have been given the run around by third party warranty companies when trying to have their vehicles repaired. I find it hard to believe that we are even having this discussion when one of the most popular third party extended warranty companies out there, Warranty Gold, is not even paying claims right now. That alone should be enough to scare most people away from non-manufacturer-backed ESPs.

    Smart Shoppers / FWI Message Boards
  • q45manq45man Posts: 416
    The problem is no outside company can predict the future, only the manufacturer has a good idea of failure rates.
    These ESP use historical data which doesn't apply when a model changes or a new one is introduced.
    The acuraries flat out guess what each model will cost. A few wrong guesses and you are out of money...........hoping beyond hope that you can sell more policies before you have to close the doors [bankruptcy].

    The real question is will putting $1200 in an interest account [instead of buying an ESP] cover everything?.[Probably not]....Lots of difference in buying a car with a 3/36 vs a 5/50k or a 6-7/70k factory warranty.
  • zueslewiszueslewis Posts: 2,353
    around 36-42 months. It has been for 15-18 years. The average person out there trades their vehicles that frequently.

    If you keep a car 10 years and run the miles up, you're the exception to the rule (I'm talking new cars, no used). In that light, as a former F&I guy who was good at selling warranties (factory and aftermarket), it was a hard sell when someone traded cars every 3-4 years. They're in warranty for 90% of the time they'll own the car....
  • autoxpertautoxpert Posts: 4
    With all due respect "Zues", the statements you are making about the factory backing Warranties are correct, however each factory plan reinsures their obligation by paying an average premium of 1200 per car for the 36/36 B to B.

    The title of this thread was Extended Warranties,(service contracts) my remarks were regarding the statements that were incorrect regarding these supplemental products purchased after the sale. Magnusson Moss does make mention and gives consumer recourse in "Tie in sale" products. I agree that companies of under reserved/under funded capacity are doing a horrible diservice and fraudulent business practice. In your state, the "smart choice" product has hurt many consumers, dealers, and agents, because of thier lack of business integrity.

    Just to clear the air, and make a point. Chrysler Service Plans are insured by Zurich. ESP is insured by Travelors, and GMPP is insured by Motors Insurance Inc. The insurance is the financial protection for the performance of the service agreements.

    I beg to differ about actuarial "guessing". Many companies have 20-30 years of failure experience to properly price products using trending and inflationary methods. And just so you know, the factories DO NOT share failure rates with the Factory endorsed service contract programs. I have an actuary that works at Ford, who can't get information other than what has hit his insurance reports.

    The person who buys a a vehicle that keeps a car 44 months and 54K miles (national average 2001, source Dept Motor vehcile) then to buy a Service agreement above the 36/36 is beneficial. Not many people in the US have an arbitrary $1200 to put in an account to draw 5% interest. These products offer great value.....

    These are facts! And by the way, My "self professed screen name is nothing more then what i am considered in my industry. Are you a god in yours...this is joke, try to lighten up!
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