Extended Warranties

2k1olds

purchased a 1997 Aurora with 74000 miles. Has anybody ever dealt with Premier Warranty Group? If so, good and bad points? They seem to have great rates, but they could be too good, if you know what I mean. Appreciate any comments.

weezie

It sounds like you made out okay... unlike me! I had a recent experience with Warranty Direct and was horrified at their claim handling. Although I was told by the sales guy who sold me the coverage that they would pay ANY labor rate, I found out the hard way that Warranty Direct ABSOLUTELY caps their labor rates and parts! I wound up paying over $400 on a repair that I was told had a $0 deductible! Nice, huh? After doing some research as to why they would operate this way, I discovered that their insurance company has recently been downgraded by AM Best for the second time in 12 months! Could the end be near? BEWARE!

oldie

Our 1999 3.2TL has been running smoothly with no problem. I did buy a refundable extended warranty. We probably will get a refund mid next year.

moneyman1

I had checked out some of the third party people on the net actually got a call back from Warranty Direct on the telephone. After a check of this board and the better business bureau I've decided that the third party warrantees are to be avoided. Two good leads for the GM extended warranty were presented on the board for Capper Auto Center in Iowa and Blacks GM Outlet in PA. Both have good BB history. I called the Iowa dealership and found an extremely nice no pressure person on the other end who explained everything and their pricing structure. Their price was even lower than the GM employee discount price I am entitled to receive.

While extended warrantees are always a crapshoot, they at least they put you in a better position at repair time and have some additional benefits like rental and roadside service. I will probably ultimately opt for a factory 100K mile $200 deductible on my Vibe. Thanks for all the recommendations.

houdini

We were offered (and took) a $1650 Security Plus "Gold" extended warranty for 100k/ 84 mos on a new 2005 350Z, then found that there was a $50 deductible option not offered. Suggestions welcome on whether this is useful, should be cancelled, attempt to upgrade to 0 deductible.

ateixeira

That's a pretty small deductible. To me a warranty is to protect me from a catastrophic loss, so $50 wouldn't be objectionable.

Having said that, ours has no deductible.

-juice

hoodb

I am in the process of purchasing a new Santa Fe. I talked to the finance manager who went over the Hyundai Advantage plus, which extended my service contract from 5 years/60,000 miles to 10/100,000. He said that the price would be $1595. This seems like a good price for a 100,000 mile service contract. What do you think?

CarMan@Edmunds

Hello hoodb. New Hyundais already come with a 10 Year / 100,000 mile Powertrain Protection warranty that covers most engine and transaxle components. So the extended warranty that you are purchasing will essentially serve to convert the coverage that your car already has into a full bumper-to-bumper warranty and provide you with a free rental car when your car is in for repairs. Whether or not you feel as though this additional coverage is worth the $1,500 that you were quoted is more of a personal preference than anything. I personally think that I would lean towards not purchasing the additional coverage since this model's powertrain warranty already goes up to 100,000 miles. The engine would be the main area that I would want to have coverage for. If you do opt to purchase an extended warranty for your car, remember that in most states, the selling prices of extended warranties can be negotiated. Not only that, but you do not have to purchase the extended warranty for your car where you bought it or where you plan on having your service performed. You are free to purchase your extended warranty from any Hyundai dealer. You may want to comparison shop with a few other dealers either in person, over the telephone, or via e-mail to make sure that you are getting the lowest possible price for this level of coverage.

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danf1

Is your Santa fe 4x4 or fwd? There is a difference in cost for the two. Powertrain coverage is great, but if you do intend on keeping your car past the 5 yr 60,000 mile plateau some things to consider: Air conditioning compressor
Starter
Alternator
Power window motors
The items that "nickel and dime" in the second five years will be covered 100% parts and labor. HPP also includes rental car coverage for the entire term that Hyundai's standard warranty does not. You can E-mail me if you have any more detailed questions.

bikerpa

"extended my service contract from 5 years/60,000 miles to 10/100,000"
...Using the words "service contract" sounds to me like they're throwing maintenance in along with the warranty coverage. Clarify, please?

I bought an Elantra hatchback last April and sprung for the $869 (at my dealer) bumper-to-bumper 100k extension. I like the thought of paying for nothing except brake pads/discs, oil, oil filters, air filter, tires, wiper blades, and a timing belt (total cost: $950ish) over the space of the next five or so years that it'll take me to a) pay off the car and b) put 100k on it. The factory warranty came into play just last week - shifting from 1st to 2nd was grinding, so they threw in a whole new manual transmission, and now all is nifty. The dealer I went to for service, 500+ miles from the dealer where I purchased the car, was nothing but cordial and didn't attempt to separate me from any of my money.

saz_1

I have an 01 LS with 44K on the clock. Havent had too many problems with it (broken power window, airbag wire harness). Anyway, the warranty is up soon and was wondering whether it was worth gettin the extended warranty from Ford or someone else. I am looking at the Ford Premium Care or the Intercontinental Warranty. Any thoughts?

virgiesmom

When I purchased my Mountaineer I went on line and purchased the Ford extended warranty. Actually purchased from a dealership in Iowa (Mid-States Ford Truck Sales in Des Moines, Iowa). They were the most competitive and real easy to work with even though I purchased and live in Virginia. Dealership I bought from was not competitive and were pushing a non-Ford extended warranty! recommend you give them a chance.

CarMan@Edmunds

Hello saz_1. I always advise consumers who are considering purchasing an extended warranty for their vehicles to buy an official manufacturer-backed policy. I do so for several reasons. One is that manufacturers are much more likely to step up to the plate and cover a repair without giving you the run around than an independent company will be because it is in their best interest to keep you as a happy and hopefully a loyal customer for their brand. Furthermore, a number of independent warranty providers have gone bankrupt over the years, leaving their policyholders with worthless contracts.

Remember that the selling prices of extended warranties are negotiable in most states. Not only that, but you are free to purchase your vehicle's official manufacturer-backed policy from any dealer that sells Ford products, not just the one where you got your LS or where you plan to have it serviced at. Shop around with a few dealers for price quotes on the level of coverage that you are interested in, either in person, over the telephone, or by e-mail. Once you have gotten a few quotes, take the lowest one and give the dealer that will do your service work the opportunity to match it. While you don't have to purchase your warranty there, it never hurts to do so.

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roper2

I have about 4k left on the factory warranty.I am thinking about driving this truck another 2 years probaly around 150k.Whats one's opinion on aftermarket warrantes? Which is the most reliable? Dodge gave me a price for up to 120k max for around 1200.00. thanks dennis

socalgirl

Wow, which dealership did you use? My partner and I just bought a Civic Hybrid and the extended warranty (6 yr/100k) for 1000, but we're shopping around. I like the idea of being able to get a refund if we never cash in the warranty, so getting your dealer's details would be great.

Thanks!

hamed

Hello, I just sent my car to the dealer for a transmission problem. The dealer says that in order to be covered I need receipts from mechanics showing checkups I told them I did my own checkups, does this invalidate my warranty?

ateixeira

Depending upon the mileage, you probably should have drained and filled the gear oil in the differential or MT gear box by now (or ATF for an auto tranny).

They are looking for receipts proving that service was done, which seems reasonable to me.

-juice

audia8q

many extended service plans requires some sort of proof that the mfg. maintenance schedule was followed. For the people who do their maintenance it is important that you keep receipts to help prove the routine maintenance was done....In theory they can reject your claim if you have no way of proving that the work was done.

Is your warranty a manufacturers extended warranty or an outside company??

hamed

It's an outside company and, I guess well that's it. Either find the receipts or a better mechanic.

Thanks for your help

ace1000

I just bought a 2005 Odyssey in the SF Bay Area with a 7 year warranty that is fully refundable if not used. At first I thought that the fully refundable feature was part of the Honda Care service contract. I discovered that it is offered by the dealer. There are some stringent conditions, for example, you have only 60 days after the expiration of the warranty to apply for the refund and you have to submit a number of documents.

My question is whether anyone has gotten his money's worth from a Honda Care service contract on an Odyssey? Odysseys have had transmission and door problems, but if the dealers have fixed these problems for free or greatly reduced prices even after the factory warranty expires, then the service contract probably isn't worth the hassle. The dealer will probably charge the repair against the service contract rather than give me the same deal as someone without a service contract, so I would end up paying a lot more with the extended warranty than without it.

akangl

Nice try Jennifer, but no advertising on these boards. I would NEVER buy an aftermarket ESC, aftermarket companies have no interest in keeping you happy.

We have a Ford Premiumcare ESC on our Dodge (bought used at a Ford dealer) and so far it has covered over $1600 worth of work on our truck. No questions, no accusations, just a done deal. Only things it doesn't cover is basic maintainace. Best $2200 we ever spent, we still have 12k remaining on it and the truck is going in for more repairs in 2 weeks.

The manufacturer (will be buying a Nissan ESC for my Titan) has more interest in keeping a person happy then some fly by night aftermarket *warranty* company.

mikaelajaz

I am agent for Mercury Insurance Group! Which if you no anything regarding extended warranties or Insurance companies at all then you would know that the are the BEST! And are rated A+ w/ AMbest which is an insurance rating company like B.B.B., but for insurance companies based on assets,written obligations, c.s. ect.... In fact you may even have Mercury Insurance and not even know it ..For auto insurance. home owners, medical ect...You know it is not a FORD warranty is is through an insurance company and they are allowed to , FORDto put their name on the polices..Because you have a Dodge (competitior's)Ford manufacture's would protect that vehicle if it really was a Ford policy...If your car broke down the first 3/ 36 miles on the dodge would you have taken it to Ford to get it fixed no, of course not...So there's a little tip nad inside of something you did not know!!!

browniemiss

I am in the process of purchasing a 2001 Ford Expedition (33,400 miles). The dealer offered us a warranty for $1555 for 24 months/24000 miles. This seems rather high. I would feel much more comfortable with an extended warranty, as it currently has a 2month/2000 mile warranty. I wanted to know if anyone had experience with extended warranties purchased outside of the dealer (for example, fordwarrantycentral.com)? I didnt even know that was an option until I came to this board.

Your response is greatly appreciated. Thanks in advance. Mel.

driftracer

and I'll recommend against private (aftermarket) warranties with my dying breath after being an F&I guy AND a service manager -

I'd be glad to challenge you to a debate if the hosts would agree to allowing this entertaining show of the facts versus your dog and pony show...

mikaelajaz

In all do respect service contracts are ALL done through an insurance company. I work for American Mercury Insurance Group, which is the largest insurance group in America. They do life, auto, health,and home insurance you may even have one of their policies. Am Best (which is an insurance rating company) like the BBB rates them A+ . Which means they have outstanding, assets, customer service, fulfilling written obligations etc. Example the first 3/36 miles that came with your Dodge came directly from the manufactures of Dodge, after that the insurance company would do the extended service contract. You would not have taken the Dodge the first 3/36 miles if you had a problem to a Ford dealership, you had to take it to Dodge. SO because the contract agreement say Ford Premium care that is not from the manufactures of Ford,they have an agreement with/ the insurance company to be able to put their Ford logo on the policies . Ford would not protect a Dodge vehicle because it's not their truck. That is a food for though for you and maybe that will give you a little more positive outlook. My company has been is business since 1983.And I have been there for 12 years. Have a Good day.

driftracer

sold hundreds, if not thousands of contracts, and I've never heard of AMI or Mercury.

If your only argument is that a DaimlerChrysler contract wouldn't cover a Ford vehicle, you're completely wrong. A DCC (or Ford, or GM) contract would cover any vehicle it's written to cover - the exception is that DCC has no Magnusson-Moss statute requirement if a "breach of warranty" case was submitted, because DCC didn't manufacture the Ford.

Your "service contract" company, and PLEASE don't use the word "warranty", because your contracts aren't "warranties", has no concern over the actual vehicle itself, or the consumer, for that matter, and has no legal obligation to satisfy the consumer under Mag-Moss or to make the vehicle or consuer "whole" as the warranties written by manufacturers do - you either have a repair that meets your prerequisites, or you don't.

And I'm sure your warranty inspectors/adjusters have a great deal to say about the things that aren't covered and the number of claims that are denied, or common sense and fiscal sense tells you that your company wouldn't be in business.

If you have some stronger points to debate, I welcome them - I'd appreciate one point at a time, for the reader's benefit.

mikaelajaz

Well like anything in life people will have different perspective on things. Myself I work for a wonderful company and the are rated A+ with AM BEST!
Myself I sold cars and F&I gal.
When you sell a extended service contract the customer will be paying for a contract for 5-7 years into their loan with interest.SO now the $1200-$1800.00 policy will cost you another $1,000+.More than likly the contract will expire before they are even done paying off the loan or they sell the vehicle before the 5 years and the paid all that time and will not receive a pro-rated refund or being able to transfer the policy to increase their resale value. Also the standered deductible is $100-$200 depending on how much money you are trying to make off the customer.
Another thought is I have dealerships calling me wanting to get the extended service contract to be able to sell the polices .
So, I will agree there's horrible companies out there you need to do your homework and refer to AM Best regarding the insurance company.

driftracer

Whether you purchase a GMPP contract or your company's contract, if it's included in the loan, interest is paid on it.

The same way if you purchase the contract using a home equity line or a credit card - interest is paid.

What's the point of that?

A word of advice - if you keep plugging your company, which is basically all you're doing, the hosts will delete all your posts - you can't advertise here.

CarMan@Edmunds

mikaelajaz, regardless of how long your company has been in business, it is still less likely to step up to the plate and cover repairs on a vehicle than a manufacturer would be for its own product. You keep focusing on a Ford extended warranty that was offered on a Dodge product, but most manufacturer-backed policies are sold on the vehicles that are sold by that automaker. The bottom line is that manufacturers are much more likely to step up to the plate and cover repairs without any sort of hassle than a random third party that has does not have nearly as much of a vested interest in keeping you happy would be. Not to mention the fact that dealer's service departments are able to get approval and payment for necessary repairs much more easily from manufacturer-backed policies than they are from policies written by independent companies.

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CarMan@Edmunds

Hi browniemiss. When shopping for an extended warranty for a vehicle always keep in mind that in most states the prices of warranties are negotiable. Furthermore, you do not have to purchase the policy for your car or truck from the dealership that you purchased it at or the one that you plan on having it serviced at. You are free to purchase an official manufacturer-backed policy from any dealership that sells the same brand that you want coverage on. Make sure to shop around with a few dealers, either in person, by telephone, or over the Internet to get several quotes on the level of coverage that you are interested in. A number of consumers who I have spoken with over the years have had good experiences purchasing warranties from dealers' web sites. Search around on the web and you are bound to find a few that have attractive prices. If I was in your situation, once I had found the lowest price for the policy that I was interested in, I would give the dealer that I plan on having my vehicle serviced at the option to match the price. While one doesn't have to purchase their warranty from the dealership that they have their vehicle repaired at, all things being equal it never hurts to do so.

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driftracer

These private companies (like AMI/Mercury) 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.

Did you know that private service contract companies, if they need to replace the engine or transmission in your vehicle, can actually purchase components froma salvage yard? "Used" components is written right into the contracts, in fact, I've never seen an aftermarket contract WITHOUT that provision.

Manufacturers won't do that to you.

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 get to the front of the line.

I've personally spent 18 working hours trying to get ONE claim handled/approved.

boomer1b

Are worthless..........Warranty Gold and a few others that went broke and left plenty of folks holding the bag were als rated AAAA++++ etc. by them at one time.

Heck,just browse these forums for the sob stories!

"BUYER BEWARE"

driftracer

brian_k

Scenario: dealer buys a used car on trade in for $30K. They sell as certified for $32K. Who pockets the profit from the car being certified? If the value of an extended warranty is $2000, does the dealer and manufacturer split the cost/profit? At what percentage split? I am trying to determine value of certified vs non-certified used car given the base value. Thanks.

KCRam

When you sell a extended service contract the customer will be paying for a contract for 5-7 years into their loan with interest.SO now the $1200-$1800.00 policy will cost you another $1,000+.

Unless you're paying around 20% on your loan, a $1500 service contract will not generate an additional $1000 of interest over 5 years. At today's average rate of 5.25% and 60 months, a $1500 add-on will add just $225 to the total interest of the loan.

As far as AM Best ratings, they mean very little to the average consumer. Joe Average needs to know that the company has been around and will be around. GM isn't going anywhere. Toyota isn't going anywhere. And as others have pointed out, the manufacturer wants you back as a customer, so they're far more willing to take a loss on a service contract or a claim in the hope that they'll make it up with you buying another car when it's time. Private insurers like your firm are in this for the money and can't take that loss because you have no other source of income besides the premiums.

I tend to push manufacturer plans more than others on new vehicles these days because so much of a modern car or truck is computer controlled and diffiuclt to diagnose. Even things that were purely mechanical and easy to fix are now just wires with data pulsing through them, such as the throttle cable replaced with drive-by-wire. A dead spark plug in a V-8 used to make for a little rough running 20 years ago - now, it can actually trash the transmission as the computer attempts to "compensate" for the problem by changing how everything else works.

As I said, the manufacturer wants to fix your car through such a contract... the third-party insurers can't afford to.

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mikaelajaz

Well, I know for myself I know we have the #1 companies ..All have been in business since 1973-1978. Myself 12 years.
The interest rate is only that low on a new vehicle not on a used vehicle where the policy will cost an extra $1,000. Normally people purchase a warranty on used vehicle not so much when the vehicle is brand new.

I have heard several horror stories on the manufactures warranty when the car is under 3/36 warranty .And alot of the problems were from Ford.

As for GM going out of business that maybe true, but 10 years ago who thought Oldsmobile would have went bankrupt.

Like it or not GM and all manufatures extended warranties (service contracts) are from an insurance company. The only ones that do not is when the manufacture's pre-certified a used vehicle.

KCRam

With all due respect, your post is full of incorrect information.

Normally people purchase a warranty on used vehicle not so much when the vehicle is brand new.
Most of the private policies are on used cars, but the bulk of manufacturer contracts are on new vehicles.

I have heard several horror stories on the manufactures warranty when the car is under 3/36 warranty
Cars that are under their 3/36 warranty limits are covered by the original manufacturer warranty, not an extended contract.

As for GM going out of business that maybe true, but 10 years ago who thought Oldsmobile would have went bankrupt.
Oldsmobile did not go bankrupt... it was a nameplate within GM - Olds was not a company that has any financial status. GM can drop all the nameplates tomorrow and come up with 12 new brand names if they want.

Like it or not GM and all manufatures extended warranties (service contracts) are from an insurance company. The only ones that do not is when the manufacture's pre-certified a used vehicle.
Manufacturer service contracts are usually backed by the manufacturer's internal financial divisions. They don't have to worry about an outside insurance company telling them what they can and can't cover. It's an overall cost of doing business for them. Insurance companies like yours that offer service contracts with no vested interest in the customer or the vehicle need to make money in order to survive. Thus they are MUCH more likely to deny a claim that a manufacturer will cover.

kcram
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KCRam

mikaelajaz, please contact me via email - your email box is full.

kcram
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md857

I am buying a 2005 Honda Odessey and Honda offers an extended warranty for $1500 for 7 years/100000 miles. Do you think I should take the extended warranty.

CarMan@Edmunds

Hi brian_k. Each manufacturer charges a different amount to certify vehicles through its Certified Pre-Owned Programs. For example, Acura only charges dealers $395 to certify vehicles, while Cadillac charges dealers $1,000. The cost of the additional warranty coverage that is provided through these programs is included in these prices. If you let me know what brand or brands you are interested in, I should be able to give you a good idea of what the certification of used vehicles costs.

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CarMan@Edmunds

Hi md857. When shopping for an extended warranty for your vehicle, keep in mind that in most states the selling prices of extended warranties are negotiable. Furthermore, you do not have to purchase the extended warranty for your vehicle from the dealership that you plan on having it serviced at or the one that you purchased your vehicle from. You are free to purchase an official Honda extended warranty from any Honda dealership that you want. If I was in your situation, I would shop around with a few dealers, either in person, over the telephone, or via e-mail for prices on the level of coverage that you are interested in. Then take the lowest price quote that you get and give the dealer that you plan on having your service work performed at an opportunity to match it. While you don't have to buy your policy from your local dealer, all things being equal - namely price, you are probably better off purchasing your policy from the dealer that will perform service on your vehicle.

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boomchek

Buy it only if you plan to keep the vehicle for that long. If you're only going to keep it for a few years or not put much mileage on it then save the dough. You probably won't get much of that money back when trading it in.

andre1

I own a 2000 Mercedes C-class and #$%& Mercedes will not allow me in any way to extend my warranty at all, even though it is still under the Starmark warranty. Therefore, I have been looking at aftermarket warranties. Does anyone have any experience with CarWarrantiesDirect? They are underwritten by Warranty Administrators, Inc, Capital Insurance and Hanover Insurance. Their prices seem reasonable, but I was wondering of any experiences by members on this forum.

audia8q

Let me start by saying I don't like aftermarket warranties...but since a mfg warranty isnt available your situation is a bit different.

1. If your car had a major breakdown, can you afford to pay for the repair without going bankrupt?

If a major repair won't kill you financially, your better off taking the amount the warranty and sticking the cost of the warranty in a savings account and take your chances. OTOH, if a major repair would cause a financial problem, I would research any aftermarket warranty very throughly. So many have gone out of business it's scary. Check out Longevity in business, BBB complaints, etc. Also check with the service manager at the dealership and see if they will honor the aftermarket warranty. You don't want to be forced to get your MB repaired at knucklehead motors.

johnnyrf

Since the 05 Ody is a new model and it is very early in the model year, I would definitely buy the extended warranty. I have a 99 Ody which was the first model year for the previous gen. Ody and the extended warranty I bought paid for itself 3-fold. You don't have to buy the warranty right now. If you buy it before 24K miles, the cost remains the same. Also, shop around. You can easily save yourself $500.

lyevara

Greetings!

I'm entertaining the idea of purchasing an extended warranty from WarrantyWarehouse for an Explorer 2002 Eddie Bauer. Do you have any information on this company that can help decide for or against buying the extended coverage from them?

Thanks!

fraublucher

If anyone is interested, Toyota of Greenfield (MA) is selling the Toyota Platinum Plan for $20 above cost. I recently purchased an EW for my 04 Highlander LTD 7yr/75K $0 Ded for $595. We plan on turning this vehicle over to our daughter in 3 years when she turns driving age, so the money for the EW was important to us. But we did not want to spend the $1005 our local Toyota dealer wanted for the same plan.

It pays to shop around (especially on the internet)!

chrisgivens

You are entertaining the idea of purchasing a warranty from a Risk Retention Group. See the previous posts about these companies such as, Warranty Gold, Warrantybynet, Warranty Direct, 1Source. They are all backed or were backed by a RRG. They will tell you different, that there are not any risks, but the proof is in the pudding. They are not regulated by the insurance commission in your state. Buyer beware!

Kirstie_H

You might read through this discussion:
Warranty Warehouse

Before buying any service plan that's not backed by a manufacturer, you'll want to talk to your favorite service center and make sure they accept that plan's coverage. Otherwise, you could be out of pocket the expenses and hope you get reimbursed by the provider. If you read through this discussion, you'll see that most members would advise you to take a good look at any extended warranty offered by Ford first.

kirstie_h
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majordad

[I am looking at purchasing an extended Service contract for our new Camry. So far the best deal that I have found has been $1,275 for a 7 year/100,000K Platinum Protection Plan. Is this a good deal, or am I being taken to the cleaners?]

Haven't had time to search the entire discussion string. did you ever purshase your warranty and did you find a better deal than the quote above? Does anyone know where to find the dealer invoice price for the Toyo extended warranties? I want the 6 yr/100K and the best quote I've received is $1135.00.