Extended Warranties
98monte_ls
Member Posts: 117
in General
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.
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.
Tagged:
0
Comments
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.
"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.
Car_man
Host
Smart Shoppers / FWI Message Boards
For GM, try these guys in Iowa:
http://www.capperautocenter.com/
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.
http://www.gmprotectionplan.com/ has some limited information but you really need to see a contract to understand what is covered and what isn't.
THANKS!
Thanks,
tiresmokem
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.
bruce
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.
bruce
Private "warranties" aren't "warranties" at all - they're insurance policies. Policies that have no legal liability to repair your car - at all.
I'll go look for confirmation because warranty work isn't my department at work, but I'm pretty sure.
kcram
Host
Smart Shopper and FWI Message Boards
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.
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.
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.
Car_man
Host
Smart Shoppers / FWI Message Boards
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.
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....
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!
Car_man
Host
Smart Shoppers / FWI Message Boards
Warranty Gold is backed by a Risk Retention Group. These companies are not regulated by any government agency....NONE. That is what NWIC is, a Risk Retention Company.
The majority of dealers use Reputable companies, (CNA, JM&A, Protective, Universal Underwriters, APCO) these companies have Fully insured liability policies backing the obligations of the agreement. EXACTLY like the factory plans. These programs have to be filed and approved by each state department of insurance. They all have federally protected "Guaranty Funds" if they become insolvent, which pays all claims for the consumer. (Example, Reliance insurance 1998)
You keep quoting the example of Warranty Gold/Capital Assurance, these companies have no liability policies backing performance, they have stop loss or excess of loss protection, which means the TPA not the insurance company is holding the funds for future claims. The bottom line, many manufacturer plans, and reputable insurance products exist, the customers should research these products and find out about the company they are being presented. The examples I used above all have AM BEST ratings of A- or Better, and are endorsed by GM,FORD, and Chrysler Financial Corporations. NWIC lost its endorsement in NOV because of it's insolvency.
People who finance car loans and supplemental products are actually smart! Why would you not borrow 1000-$2000 at 0% interest rather than take $1000 of your hard earned money and set it aside for 5 years and ABSOLUTELY NOT TOUCH IT. Most people on a budget can't do it or afford to do it, that's why it makes sense! $1000 at 5% for 5 years is only $1276. Most major repairs occur past 36/36 (ie. A/C, engine, trans, or drive axles) and average $1800 - $2600, and that's using today's money! It doesn't make sense!
You can make an argument that the "warranty gold's" of the world ruin this type of product and everyone should run for the hills. Truth is, the majority of people who buy New and Used cars need some form of protection when the Factory warranty runs out. Last year nearly 7 million service agreements/contracts were sold in the US. This is spread both between Factory and Independents.... If these products are so unscrupulous and always screw the customers, why has the federal/State/and local governments allowed them to be sold for nearly 30 years?
My advice to a conusmer would be to research the company that backs/insures the product. Only buy coverage and terms that will suit your personal needs. Shop around to get the best deal! Most often, its at the dealer you buy from, they have millions of dollars riding on their reputation, and future viability because of CSI. The likelihood of a customer getting screwed is less and less because of resources like this chat room and websites....
Will the many lengthy extended warranties bankrupt Kia, Hyundai, Dodge, Jeep, and Chrysler when their vehicles fall apart long before the 100,000 or 70,000 miles?
One possible scenario is that the disgruntled owners will get too annoyed with the frequent trips in to get one of these vehicles repaired that they will decide to dump the unreliable brand and get a Toyota where they do not need the extended warranty.
Of what value is an extended warranty if a person is spending too many valuable hours taking their vehicle to the dealer to get it fixed?
autoxpert - my screen name is zueslewis, taken from my first e-mail address (ever), which was named after my German Shepard (now passed), my best buddy for 12 years. I, unlike you, have no "God" complex.
I deal with warranty/manufacturer liabilty every day. I could care less if the GMPP CEO writes checks out of his own account to cover repairs, my issue is who is liable, not who is backing the money. Only the manufacturer can be held liable for any aspects of warranty (in legal terms) on a vehicle.
With a private company sponsoring a service contract, they have NO liability under the law to honor the "warranty" of the actual vehicle, which is described as "warranty of merchantability" - that is the concept under which breach of warranty cases are prosecuted - as violations of both the Uniform Commercial Code and the Unfair Trade Practices Act.
Aside from the legal issues pertaining to private service contracts, there are many more issues that should sway an educated consumer away from private companies, like pre-authorization requirements, pre-payment for repairs in many cases, a week or more waiting on a adjuster to inspect the vehicle before parts can even be ordered, etc.
There are several more disadvantages, if you'd like me to explain further.
If it is your sole purpose to come here a try to sell private warranties like a travelling vacuum cleaner salesman, this is not the place to do it. Also, there is no need to attempt to discredit me or anyone else. I've sold over 7,000 extended service contracts (factory and private), administered them as a service manager, and now I've investigated their breaches as a consumer fraud investigator.
Your facts are very skewed, and your attitude is hostile - both are unnecessary.
Which Toyota models seem to be more prone to have a lemon (Tundra, ECHO, Tacoma, etc )?
Do Toyota problems tend to be major mechanical like engine / transmission or accessories like power windows, power door locks, radios, etc.?
Thanks for your assistance.
Mostly, I see Camrys, Siennas and Previas (older, but lower-miled Previas) for engine management system problems, usually dealing with the engines acting up and multiple PCM and sensor replacements (usually causes drivability problems).
Based on your information, other data in Town Hall, and a most distasteful experience the last time I went to look at 2004 Siennas, the Odyssey has moved ahead of the Sienna for my preference if I get a minivan.
I saw a few Odesseys ('99-00 models), but rarely see them now, if at all.
Car_man
Host
Smart Shoppers / FWI Message Boards
I have a WG on my wife's 99 Monte, have yet to use it. WG is still advertising on the net.
Just bought a used 2000 Intrepid factory warranty just ran out,dealers extended costs too much for too little.
Was looking into a bumper/bumper extended from Certified Car Care. They're located in FLA. Anybody know of them or did business with them?
Technicans hate warranty work because it doesn't pay them enough to live as the reduced allowable time just get passed down to dealers who pass it down to techs. Worse the dealers don't get paid in full for sometimes 90 days and they are nickeled and dimed by regional manufactures agents.
When a warranty ticket is placed in the work box they [techs] all run for cover hoping against hope that some out of warranty [customer paid] job will show up. Some body finally picks it up, the guy that needs the money the most........the best techs are usually not subjected to this process unless the mortgage is due.