Extended Warranties

driftracer

I've yet to see an Edmunds host endorse ANY aftermarket warranty company. Every post I've read aligns with my thinking from years in the industry and time as an expert witness that aftermarket service contract companies do not have the consumer's best interest in mind, plus they don't offer "warranties" at all.

 

There's no way that having an aftermarket warrant could ever help you in a lemon law or breach of warranty (Mag-Moss/UCC) case.

Kirstie_H

Better that you should wait til you've been around awhile before finger-wagging - we've never endorsed any aftermarket warranty. If you look through the posts in this and other discussions, you'll see posts from car_man, kcram, myself, and other hosts advising consumers to think carefully before purchasing an aftermarket service agreement.

nancyw

Then why is edmunds compensated then? How is this unbiased? Please address this.

driftracer

Seriously, who cares? Edmunds.com and Edmunds Town Hall are two separate entities when it comes to consumers getting information.

 

The fact that most hosts recommend against aftermarket contracts says a lot to me.

nancyw

They are owned by the same company and who cares? How about people looking for truth, not marketing. Let the dealers rip people off, not when they come here.

driftracer

I don't know you, but accusing Edmunds of ripping people off simply because they let a company advertise with them is pretty far-fetched.

 

I do loads of business with the Tire Rack - I've never been burned. Even if I didn't like doing business with them, I wouldn't hold it against Edmunds for letting them advertise here.

 

Edmunds HAS to use marketing and allow companies to advertise in order to have funds to pay the people who write articles, conduct car tests, and host Town Hall.

 

It's not a charity, they have to get paid somehow. Lighten up, please.

Kirstie_H

Nobody here is ripping you off - we haven't taken a dime off you. Nobody forces you to buy anything. It is YOUR responsibility to do YOUR homework - check out everything and make the decision that's best for you.

 

Warranty companies and many other companies purchase advertising space at Edmunds.com. This is not a stated nor implied endorsement of any company, and they get nothing in return apart from the ad space they purchase.

 

When you watch, say, ABC News, and an advertisement for an herbal hair re-growth tablet (that likely doesn't work) appears during the break, do you chastise Peter Jennings for endorsing a lousy product? If you do, you're going to be tilting at windmills for the rest of your days on Earth. Doubtful that Mr. Jennings even knows about it.

 

If you expect that every company who advertises in every form of media - during radio programs, TV programs, in magazines and newspapers, and on the Internet - is selling YOU a product that YOU want or need, it's going to get very expensive for you indeed. It's a matter of using your own judgment and your own free will.

 

Now, this discussion is about Extended Warranties and not about Edmunds.com policies. If you have further questions or comments about our advertising policies, please submit them using the "help" link near the top of the page.

landsteam

Did anyone ever here of this company? I looked them up on the web & they are a very large company. The price seams high. What do other think?

flatlander

I bought into and promptly got out of an extended warranty on my 2002 Lexus with Warranty Direct. To their credit I received my refund very quickly. The point of this posting is that I had contacted so many warranty providers via their brokers that I was fending off offers for a week after I had decided that 3rd party warranties did not make sense for a reliable car like a Lexus. What blew me away was that one telemarketer actually agreed with my logic that it was a waste of money. Pity I cant remember which company he represented.

rroyce10

..... JM&A ...??

 

Ranked by Forbes magazine as the 15th-largest privately held company in the United States, JM Family Enterprises, Inc. (JMFE) (www.jmfamily.com), headquartered in Deerfield Beach, Florida, is a recognized leader in the automotive industry. JMFE’s visionary business practices have enabled the company to capitalize on market trends and maintain a rapid rate of growth. In January 2004, JMFE was ranked by a survey in FORTUNE® magazine as the 19th Best Company to Work For in America, and the highest-ranking Florida company. This marks JMFE’s sixth consecutive year on the prestigious list. In September 2004, JMFE ranked for the third time on the InformationWeek 500 listing of the nation’s leading information technology innovators.

 

Founded in 1968 by Jim Moran, now honorary chairman, JMFE has grown from a core distribution business into a diversified automotive corporation whose principal businesses focus on vehicle distribution and processing, finance and warranty services, and insurance activities. JMFE is a $7.7 billion force in the industry with more...

 

                 They "are" Toyota ......

 

                              Terry.

67camaro

its a mistake to assume exclusionary warranties are 'better' than inclusionary. its the claim paying history of any given company that counts.

landsteam

Doing a little more research I found that the warranty is through "Fidelity".

Any good or bad story about that company?

danf1

No, but I do have a really good story about infidelity. Sorry hosts I couldn't resist.

cryztal6

I am looking for information about Ultimate Warranty Corp as well now. I am thinking of signing up for a warranty for my suv through warranties4wheels. But I am having serious second doubts after reading a lot of negative comments about some of the companies. But I also, want specific info on Ultimate Warranty Corp and it is not easy to find.

CarMan@Edmunds

Hi cryztal6. What vehicle are you considering purchasing an extended warranty for and how old is it? I ask because I always recommend that community members purchase official manufacturer-backed extended warranties rather than one through an independent warranty provider. While they are usually more expensive than warranties that are sold by third parties, manufacturer-backed ESPs are generally much better for a number of reasons that I have outlined in previous posts in this discussion.

 

Car_man

Host

Smart Shopper Forum

vanslady

Hey, I've been reading and printing out goodies about Continental Warranties from the 2003 to the present December, 2004 forum messages. I ALMOST signed the contract to fax TOMORROW and pay out my hard-earned $1350 within the next year. FOR WHAT???! I thank all of you who wrote in and warned all of us who were brain-dead about such things as extended warranties. Am going to my professionals tomorrow and talk to them about what to do and who they recommend...they should know...they work with claims every day!

Thanks a million all of you!!! 8=}

rwfiglia

Hi everyone , does anyone have info or reviews of The Guardian Warranty Corporation from Avoca PA . www.guardian-warranty.com ? I have the comprehensive coverage which is the best plan they offer .My local shop has used them and they said they are a lot better then they used to be .They just upgraded there system .They also pay the shop directy with a credit card . I called there roadside assistance # and got through right away and also got right through to the claims dept. Still makes me wary though because of other reviews of similar companys . I checked out BBB.com and they had a few complaints but they were all resolved , they are also a member of the Better Business Bureau .They have been in business since 95 .

 Thanks , Rich....

twin1

interested in hearing advice on getting extended warranty for my 2005 Honda Odyssey EX-L. Honda Care offers mechanical breakdown. Warranty Direct offers that and wear and tear coverage for a similar rate. When asked to help me decide/compare these two warranties, the Honda Care rep replied

"There is no site on the internet that sells Honda Care for less. There are 100's of third party warranties out there. Some have lower pricing. In the year 2004, 955,000 people that had third party warranties ended up with worthless pieces of paper. I don't have figures for 2004 yet. How much money did these people save? I could spend the next several hours making point after point about why Honda Care is better, but I won't. I assume that they told you that they are backed by a Risk Retention Group. I have enough money in my checking account to start one. Below you'll find some information about WarrantyDirect that I found browsing internet forums."

This really didn't help me make an informed decision.

 

Can anyone educate me please?!

thanks.

qbrozen

well, why risk it? How much will you really save by going with a 3rd party? Why not just be safe and get the true Honda warranty?

 

And as far as the hondacare's rep saying "there is no site on the internet that sells hondacare for less," I don't know how true that is. What are the prices being offered to you? I used www.hondacare.org as a guage for what I paid for my hondacare warranty.

driftracer

you can always show your dealer what you may pay and ask them to beat it - why couldn't they? I would if I was in F&I. $50 profit on an extended warranty is better than none at all.

qbrozen

"why wouldn't they?"

 

good question. My dealer told us to go ahead and buy from the dealer in Oklahoma that we got the quote from because they couldn't touch that price. Heck, I would have thought all dealers could sell the extended warranty for the same price. Go figure.

driftracer

The one thing that cheap selling a warranty does is kill the F&I guy's "average per transaction" number - many F&I payplans are set up using that average number as a guide for base pay and bonuses.

 

Selling a warranty for $50 over cost may cost the guy a grand in bonus money if he misses a goal buy a few percentage points because he averages $750 income per deal...I'd pass, too, in that case.

wanthony

I bought a 2004 Toyota Camry-se back in april 2004 and I already have 12,200+ miles on it. does anyone think that I should get an extended warranty and why should I or shouldnt I? Furthermore, are there any that you pay per month over the period of the warranty? Or, should I just pay premium price and just get it from Toyota?

 

Thanks in advance.

Wayne

qbrozen

its really a question you need to ask yourself. I mean, do you feel its necessary? Based on your research, have you found there are common problems with those vehicles? Probably the best warranty you can get will cover you to 100k miles. Do you feel your Camry will need warranty work before 100k? If you're answer to those 3 questions is no, then you should pass.

Kirstie_H

...and just as important, how long do you intend to keep the vehicle?

 

A lot of folks recommend against purchasing an extended warranty for vehicles with a good reliability record. For the most part, you're better off putting a few $$ aside for unexpected repairs. But if the peace of mind is most important to you, then by all means, I would seek out a manufacturer-backed extended warranty.

murray58

Own 2002 9-3 Saab with 47,500 miles (manf. warranty being 4yr/50,000 miles). Although a GM product, have been informed by a dealer that GMPP extended warranty not available for a Saab once pass 3 yr./36,000 mile time frame. Anyone through experience able to confirm or deny this representation?

bear_down_chi

Does anyone know what a fair price is for a Platinum 6year/100k warranty on a 2003 Camry? Pricing on Toyota's website is $1300, but I don't know how much wiggle room there is on that. I am going to stop by a dealer or two this week, but I was just wondering if anyone has any idea how much room to move there is on this?

 

Thanks.

imagemaster

I purchased my extended warranty from a Toyota dealership backed by FWS, Inc. I have read through all the papers and the coverage is dependent upon which coverage you selected. It comes in 4 options, Silver, Gold, Gold Plus and Platinum. There are only two things that bother me about the FWS contract terms. I have to pay for the rental car and submit the bill to FWS for reimbursement. The other is that this is a "breakage +" policy. It covers breakage of warrantied parts through the life of the contract, but only items that fail due to wear for the first 50,000 miles. The manufacture bumper-to-bumper warranty covers the first 36,000 miles.

 

Which plan did you get? What period and what deductible? How much did you pay? I paid 965.00 for 6 years, 100,000 miles. The other thing I don't like is that the 6 years starts on 1/1 of the model year. Since this was an '04 Scion, purchased on 5/17/04 and I bought it used with 7500 miles, the warranty starts 5 months before the car was ever put into service. I am thinking about switching to Warranty Direct.

cadillacmike

This is in response to an old post, but it bears mentioning.

 

You CAN get a GMPP for a GM car that is out of the 3/36 or 4/50 (Cadillac) factory warranty, if the vehicle has less than 75,000 miles on it. But you can only get a max of 2 years and coverage ends at 100,000 total miles. In 2000 I bought a GMPP for a 1995 Cadillac Fleetwood that had some 72,000 miles on it. Unfortunately, the car held up too well and nothing major started going until well after 100,000 miles. but that's another story. I feverently agree that manufacturer backed extended "warranties" are the only smart moves.

 

A few years back (well several more years back) in 1993 I bought a GMPP for a 1992 car, I can't remember how many years of coverage, but two years later, we traded the car in and GM refunded me what I calculated to be the proper percentage of my unused time / mileage amount, with NO problems or evasions - another reason to go with mfr backed plans.

twin1

the honda warranty covers mechanical breakdown only, while the Warranty Direct warranty covers both mechanical breakdown AND wear and tear. My mechanic suggested to try to go w/ the wear and tear, as he says most repairs come from this. For example, a leaking oil pain won't be covered under the honda warranty until it causes something else to mechanically breakdown, while it would be covered under the WarrantyDirect policy. A weak power window motor wouldn't be covered under the HondaCare policy until the window stopped working completely, while a replacement at anytime WOULD be covered under the wear and tear policy. I wouldn't be saving much in the way of money for the policy's (a 7yr, 100K policy is about $1250 from both places), but I'm wondering if I'd get more out of the added wear and tear coverage with the third party insurance.

 

any thoughts??

qbrozen

Again, its a matter of your confidence in a 3rd party company. Just do some research on the failed 3rd party companies and how many consumers were left with no coverage and no recourse for getting their money back for buying the coverage.

 

Personally, I can't imagine any company surviving that replaces things as readily as you are suggesting. Alot of things wear out within 100k miles. There is no way I can see them making money off $1200 policies when they are paying for a couple grand in "wear" repairs per vehicle.

qbrozen

I just did a quick search for you and came up with this place

http://www.toyotawarranty.com/

 

they show $1030 for the 6yr/100k platinum with zero deductible ($980 with $50 deductible).

 

if you keep searching, you may find more. Personally, I would take a printout of that info and walk into the local dealership you bought your car at and ask them to meet or beat it.

cheri1

Hi there,

 

I am looking for a warranty as well for my EX-L. Where did you get that great price quote? Did you purchase the contract? I would appreciate any help.

 

thanks,

gregoryc1

Outstanding job! ---- Happy New Year. ----Greg

qbrozen

i wouldn't hold my breath for a response since I never got a response to my question regarding the deductible and whether or not it was a true Honda factory warranty.

gregoryc1

Get a Chrysler / Jeep factory used vehicle warranty on this vehicle. We had a new loaded 1995 Jeep GC that was the vehicle from hell! It lived at the dealer. --- (Brake problems, Drive Train problems, Electrical problems).

bear_down_chi

gbrozen,

 

Thanks for the link .. I tried a few googles myself and was getting too much 3rd party stuff, but your link is just what I was looking to find.

 

I'm still debating if I need the warranty or not, but I wanted to know what I would pay for it before I decided.

 

Thanks again.

Chris

qbrozen

your welcome

wanthony

Thanks to everyone that responded to my inquiries about whether or not I should buy warranty for my 2004 Toyota Camry-SE. I really appreciate your comments and I will definately consider the points raised.

 

Wayne.

cadillacmike

Some of these aftermarket "extended warranties" have limits on the total dollar amount that they will pay over the life of the contract. I was looking at one that they wanted some $2,400.00 for with a litetime limit on payout of $3,200.00!!! I tore it up and didn't even bother even calling the F&I guy to decline the offer, that's how disgusted I was.

cadillacmike

For an agent you don't type very well or don't proofread your message very well (Now i have to proof this post 3 times to make sure i don't screw it up :-). Your grammer also makes it hard to see what your point is.

 

The only two "good" insurance companies out there are (I hate insurance companies, they're not much better than lawyers) USAA and TIAA (I don't work for either, but I USED to work for TIAA) and both have restricted membership requirements. TIAA doesn't even delve into casualty insuranc, they're strictly life and retirement. USAA is a full spectrum insurer, i.e home auto and life.

 

But, back to the point. So your company has an AM Best A+, that's not their best rating, and they revise their ratings so, when was that rating given and what were the three or four previous ratings???

 

Been in business since 1893, wow I'm twice your company's age. USAA was founded in 1922, and TIAA was founded in 1918! That's longevity.

 

As far as Ford putting their name on another insurer's product, I don't know, but GMPP is GM insured and they were the ones who refunded me on my unused GMPP back in 1995, not some third party insurer.

cadillacmike

The acura certification charge might be less (it is less) than the Cadillac certification charge, but the Cadillac Certified Pre-Owned program "extends" the "factory" "bumper to bumper" warranty (not an extended svc contract) to 6 years from the original in service date (which can be looked up at any GM dealer's service or sales mgrs office) or 100,000 miles from the miles at the in service date (which does not always start at zero miles). Acura does not provide that level of coverage. I just bought a 2005 CTS with 9500 miles on it for about $7,500 less than original MSRP, the car is 6 months old, so now my wife has a car with effectively 92,000 miles or 5.5 years warrant NOT an "extended service contract" and whe gets roadside assistance, loaner car, etc., etc if needed. They even extended the free OnStar to 12 instead of the 6 that were remaining.

 

I agree with the hosts and tracer, et al, and can't see getting a non mfr backed plan, if one was to get such a plan at all. I refused any extended service contract on 4 of my last 5 cars.

cadillacmike

Geeez, I thought that Hondas were supposed to be soooo reliable ;-)

cadillacmike

No one ever accused GM execs of being smart over the past 30 years or so... LOL

cadillacmike

A bit late, but "better late then never":

 

"Your factory warranty should add the demo mileage to the 3/36. It should be noted in the warranty in service booklet."

 

Not necessarily.

 

"Demo cars" (cars thar salesmen and dealership management personnel use as their own cars) get an in service date amd mileage ticker started the day they get put into use. and so your 36 mo / 36,000 mi is eaten up by that amount.

 

On the other hand if a car sat on the lot and had 400 miles of test drives on it, then the inservice mileage will start at 400 and the inservice date will be the date you purchased it. That's why I checked the in service date and mileage on about 20 CTS' before I bought one. I saw results mileages ranging from 0 to over a thousand and dates from less than 1 month from production date to 4 months after.

canman1971

Has anybody every tried Warranty Direct here on Edmunds.com?

bear_down_chi

FYI .. if any of you are looking for Toyota warranties .. try KC Summers toyota in mattoon IL. They are quoting me $685 for camry platinum 6/100k/0 deductible Toyota plan. This plan is priced at $1300 on toyota's website and the best other offer I saw was 1030 from toyotawarranty.com.

 

I have not actually signed up for it yet (I'm giving my local toyota dealer a chance to match), but it sounds like a really good deal.

Kirstie_H

We don't have an active discussion on this particular company, but if you do a keyword search on Warranty Direct (search box at the left), you'll find archived topics and consumer comments about WD.

theironknight

Mike,

 

How can you get a GMPP for a car outside the warranty? Everyone I've talked to said no... can you refer me to someone who will help me?

 

Thanks in advance!

 

Joe Fox

theironknight-AT-hotmail.com

danf1

You can't purchase GMPP after your standard warranty expires.