Extended Warranties

CarMan@Edmunds

Driftracer, the web site that was referenced in the post right above murphyws' is GM's dealer information site. It contains pricing, marketing, production, and other types of sensitive information and it is not accessible by the general public.

Car_man
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driftracer

weiserd

Are Lexus dealer factory extended warranty's negotiable???

murphyws

Hi Car_man. Thank you for the two leads. I currently have about 30,000 miles on my Suburban. The offer GM mailed indicated that if the original 36,000 mile warranty was no longer valid that I would not be eligible to purchase the GM extended warranty. Is the requirement for a valid 36,000 mile warranty peculiar to this mailing or is it a general rule that GM extended warranties can not be purchased if the original 36,000 mile warranty has lapsed? I reviewed other postings and understand you prefer the manufacturer extended warranty over products offered by third parties. However, what are your thoughts about the more basic question concerning the merits of purchasing or not purchasing an extended warranty at all. Do you recommend all car owners (or more specifically, all Suburban owners) purchase extended manufacturer warranties?

CarMan@Edmunds

You're welcome, murphyws. Many manufacturers do not allow the purchase of official factory-backed extended warranties on vehicles once their original warranties have expired. Whether you should purchase an extended warranty or not all depends upon how risk averse you are. While I have purchase extended warranties for my vehicles in the past (always manufacturer-backed policies) I do not do so now. For the most part I purchase reliable vehicles, maintain them well, and am willing to take my chances without the extended warranty. Not to mention that as a car nut I rarely keep my vehicles much longer than their original warranties anyhow .

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murphyws

Thanks again, Car_man. Purchasing a manufacturer extended warranty is also risky business, especially when the contract is purchased when the vehicle is new. The risk is directly proportional to the length of time between the date the extended warranty is purchased and the expiration of the original manufacturer's warranty. Outside influences that are beyond the control of the new vehicle owner (like accidents and stolen vehicles) may cause the proud owner of an extended manufacturer warranty to cease to own the vehicle before the original manufacturer's warranty expires. Considering the money invested in the extended manufacturer warranty after the vehicle is either stolen or totaled is not a comforting thought.

mustang3

I have an extended warranty from Fidelity and I am currently in the process of cancelling it. I have a Mustang and I recently brought it to have service. The dealer found problems with the suspension, break booster and main seal. They contacted Fidelity for authorization and they sent out an inspector. The inspetor denied the claim because modifications had been made to the car. Now when I purchased the warranty I had imformed them that I had made modifications to the car and asked them if it would affect the warranty. They said no. They said that they would not cover any parts that were not OEM or any parts that failed due to aftermarket parts being installed. Now I completly understand that part. No warranty company will cover an aftermarket part. Now they are telling me that they will not cover anything because the car has been modified even if the mods have nothing to due with the part that failed. So basically the warranty is useless. I have the contract and if you would like I can email it to you so you can read the "exclusions from coverage".

driven_179

i'm in the market for a used Accord ('96-'98 models) and I have been wracking my brain trying to figure out if I should get a warranty.

As previously mentioned in the forum, most warranties will only take you to 100k miles and as far I have read honda's can hold up way longer than that before they need really costly repairs (provided they are well-maintained). Coupled with the fact that I am having a hard time finding "wear-and-tear" coverage for models this old and with more than 70k miles, I'm beginning to believe that it's just best to put aside some money.

Here's the catch: I want to keep the vehicle for AT LEAST 5 yrs. Given this goal, would it be better if I look for a more recent model?

Any suggestions would be much appreciated.

nancyw

Check the BBB and attorney generals office. I looked them up, they have some complaints, all were satisfied. I called the company and becasue they are sold in dealerships as well, sometimes the dealers exagerate their coverage's. Read the contract first before buying and if it all matches up, you should be just fine.

cadillacmike

This post is yet another reason to NOT buy a non-mfr backed "extended service plan" (because it isn't a "warranty" - and don't get driftracer or any of the regulars started).

They have dreamed up every way imaginable to be in a position to deny or exclude coverage when the time comes. I'm so glad that I didn't get one of these on my ElDorado.

richk1

(if anyone also reads the Honda EW board, you can ignore this as its now being posted in both places)

okay - so I've decided that I want to get an extended warranty on my 05 EX v6 w/ nav so the "to warranty or not to warranty" question isn't an issue for me......I'm now up to "which warranty, why, and for how much"

Unfortunately, leading up to the purchase, I had spent so much time doing research on the car and the trade that I came to the table utterly unprepared to talk warranty.

What was offered to me that I bought (completely separate from the Honda loan and totally refundable) was a 72/100 w/ no deductible through "Resource Automotive" which is part of AON.

For the priviledge of having this warranty, I paid $1375 which comes in $485 above what is being offered by CurryHondaCare....wow.

So, if anyone is familiar with Resource Automotive and HondaCare - can you tell me the primary differences? If no one is familiar with RA, what are the questions/comparisons I should make to fully evaluate these (and any other) options?

In selling me on the RA warranty, I was told that a primary benefit of it is that any ASC certified tech can work on the car - which may be a benefit in terms of convenience, but as someone here pointed out, there's a certain value in having Honda service the car since they have a vested interest in keeping me happy. I was also told that RA has broader coverage than HondaCare - is there an easy way to compare? or am I going line by line with the list that each covers?

Two last questions (thanks for tolerating so far): 1) are there other EW options anyone can recommend beyond Honda and RA? and 2) if I go with HondaCare, besides taking the Curry pricing back to the dealership where I got my car, is there a way to shop it, or is Curry that much better than everyone else that its not even worth the effort?

Many thanks for everyone's help!

Rich

sohappy_1

Yesterday I purchased a 2005 Ford Freestyle Limited AWD with DVD, sunroof, fully loaded. The dealer offered their Premium Care Warranty. Warranty Direct offers their LuxuryCare Warranty for about the same cost. Since it's a first year model, I anticipate problems after the bumper to bumper expires. I'm having problems deciding on which warranty to purchase. The cost is approx. $1495 for each of them. Please help. I've read both coverages, but still can't decide. I normally keep my vehicles for atleast 13 years.

ripped53

Hello, I was wondering if you have found any additional information about Guardian Warranty Corp. I looking into purchasing a new vehicle with the guardian warranty, but I would feel alot more comfortable if I knew a little more about the company. IF you have learned anything new, I would greatly appreciate it if you would share it with me. My greatest concern is are the dependable. Thanks in advance for any information.

Steve

mvls1

Does anyone know anything about the AAA extended warranty plans that are offered and backed by Nationwide Insurance Company. I would not think that AAA would be associated with any programs that were not reputable. The Auto Club offers a great many services to their members and I was surprised to find that extended warranties were one of them.

ilenemac

Hi CadillacMike,
I see that you mentioned GM dealerworld. I went to the website, but you have to have a username and password to access information. Any advice?

jeff petrone

Hi!

Are you talking about AA Auto warranty? I don't see any AAA warranty offering. These are 2 different entities. As for the auto club, many companies like sticking to what they do best in order to remain profitable.

jeff petrone

Congratulations on your purchase.
What are the positives and negatives to each provider?

What are YOUR most important concerns?

These need to be established in order to make the right choice for you. Which is more comprehensive? Are there any other differentiating factors?

driftracer

"Are there any other differentiating factors?"

There are some HUGE differentiating factors...

mitzij

GMDealerworld is a private site, for the use of dealerships to get information from GM. You can only access it if you work at a dealership and have been assigned a password. The information here is confidential, you don't want just any yahoo to be able to look up the key code for your vehicle (and then be able to make a key and steal it), do you?

cadillacmike

Hi,

As mentioned this is a dealer web site. It has good infol ike the mfr date, "in service" date, options build sheet and warranty claim info.

But you need to be a dealer to use it (I'm not). If you can't get your dealer's sales mgr to print out the "build" and "summary" reports, post the VIN here and I'll see if my sales mgr aquaintance will run it for me.

If they won't show you the reports, I would be suspect of what they are trying to hide.

cadillacmike

Having the keycode doesn't help much when only a dealer can make the keys and they still cost you $75.00 - $100.00...

I didn't even notice that info on the reports. I'll have to go back and look at mine.

On the other hand being able to VERIFY the ACTUAL mfr date, in-service date, and in-service miles is CRUCIAL and there are lots of examples in these forums where people have been misled by sales people on these data items, particularly with regard to warranty expiration dates, etc.

Like I said, if they won't show you the reports, they are likely hiding something

mitzij

Dealerworld has alot more on it than the reports you are referencing. The key code thing is separate, as are where the sales manager orders vehicles, the service advisors check CSI scores, the business office gets reports on warranty claims, money-in-the-bank, etc, etc, etc.

And, actually, it's pretty easy to get a key cut if you've got the code. Unfortunately, many shops don't require proof of ownership before making keys. Many crooks would happily pay $100.00 for a shiny new Snazzmobile.

I personally have no problem giving you information on your vehicle, I find it very useful, as you have. However, at our 'ship, the SM feels this info belongs to General Motors, not to the customer, so we do not give out build sheets, etc. We will show customers the screen, but do not give printed copies of this info.

sohappy_1

Hi:

Would you please clarify your reply for me. Which warranty do you recommend Ford's or Warranty Direct's. Thank you very much.

driftracer

With the manufacturer's warranty, you will never have to (as you would with Warranty Direct, quoted from their website):

Worry about the type of vehicle you own, or if you change the exhaust or wheels and tires...

"We do not cover vehicles with twin-turbo engines, modified vehicles or vehicles used for commercial purposes"

Worry about whether it's a "warranty" or not...

"We have an insurance policy in effect with National Service Contract Insurance Company RRG"

Worry about being able to pursue lemon law or breach of warranty through your court system....you sign away those rights....

"Any controversy or claim arising out of or relating to this Contract, or breach thereof, will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association"

Worry about whether a head gasket failure would make you pay for the entire engine job (it will with WD)...

"engine block and heads are covered if damaged by the Failure of an internally lubricated moving part"

(doesn't mention coverage if failure is caused by a plugged catalytic converter, head gasket failure, etc)

Worry about seals and gasket failures...

"Seals and gaskets, if needed, are covered for the following assemblies: Engine; Turbo/ Supercharger; Transmission; Transfer Unit, Drive Axle(s), Steering; Front Suspension; Brakes and Air Conditioning"

This plan DOES NOT cover seal or gasket failure, which is 75% of engine and transmission problems…

Worry about a rental car, or having to pay for one out of your own pocket...

"CAR RENTAL: We will, in the event of a Failure covered by this Contract, pay or reimburse You for receipted expenses to rent replacement transportation (from a Dealer or licensed rental agency) while Your Vehicle is undergoing repair"

(you pay first, and hope you get reimbursed)

Worry about approvals, preapprovals, billing concerns, etc...

"Instruct the repair facility that they must obtain an authorization number from Administrator prior to proceeding with repairs. The amount so authorized is the maximum that will be paid. Any additional amounts need prior approval"

Have to worry about authorizing money ahead of time, while the company decides whether they're paying for the claim or not...

"In some cases, You may be required to authorize the repair facility to inspect or tear down Your Vehicle to determine the cause and cost of the repair"

Worry about administrating your own contract and finding out later that something isn't covered...after repairs are started...

Advise Contract holder that evaluation of a Failure does not mean that the repair is covered under this Contract. All covered repairs must receive prior authorization by Administrator"

"Have Contract holder authorize inspection/tear down of the Vehicle to determine Failure's cause and cost to repair. Save all components, including fluids and filters, should Administrator require outside inspection. Notify Contract Holder that cost of tear down will not be paid if it is determined that Failure is not covered under this Contract"

Worry about strongly irritating and giving the runaround to your dealership's service dept...

"Require Additional Evaluation, Inspection or Tear Down - Administrator may require an inspection prior to repair being completed. If a tear down is required to determine cause of Failure, Contract holder must authorize same. Notify Contract holder that if the repair is not covered, then Contract holder will be responsible for cost of the tear down. Repair facility should save all components requiring inspection, including fluids and filters. The Claims Advisor will arrange for the inspection. If inspection is not made within forty-eight (48) hours, contact the Claims Advisor."

Worry about denials after the fact, which keeps companies like these in business...

"Deny the claim and provide the reason for the denial"

driftracer

I ALWAYS recommend against third party service contracts?

sohappy_1

Yes, now I see. Thank you very much. I'm sure your post will help lots of others also.

mvls1

No, it is AAA, you know, the auto club that offers towing, insurance, maps etc. I was very surprised to find that they offer the extend warranties for vehicles also.

driftracer

service contracts, similar to private contracts sold by dealerships, only there is a little better billing situation with AAA service shops. Even so, it's not a "warranty" by legal definition, it's an insurance policy.

mvls1

Thank you for your answer. Now do you feel that the service contracts AAA offers would be more reliable and likely to pay out if I need repairs under the terms of it? It seems to me that AAA would be VERY cautious with regards to allowing sale of these on their websites and in their offices if there was any question as to their legitimacy. Their reputation should be worth more than what ever they could make from any sale. Also, their service contracts are backed by Nationwide Insurance, a large carrier that also has a group of stock mutual funds. By the way, the reason I am asking about this is no warranty extension is offered by the manufacturer on my new vehicle, so any help I can get will be greatly appreciated.

driftracer

no choice but to purchase a third party contract, AAA's contract is the only one I'd consider, based on AAA's ethics, incredibly long business life, and a reputable chain of shops to deal with that have to maintain standards set by AAA.

Again, I would always go with the manufacturer's warranty first, and would never consider any other private contract besides AAA.

phkck

I just purchased a GMPP warranty from a PA dealership over the internet versus my Kansas dealer.
Glad I went with a factory based warranty for my 03 Suburban.
Talked to the salesperson and he stated;
The average GMPP is used 3 times, so a deductible of $200 versus $100 is a wash if I have an average number of claims.

He is making about $100 per warranty he writes, most dealers make $500-600.

Also, by buying over the internet I am saving sales tax (about$108).

As a side note I saw that there is a $1500 surcharge for Hummer H2's if warranty goes beyond 75,000 miles. Ouch!

dominick08

HI, COULD YOU TELL WHICH DEALERSHIP IT WAS IN PA ,OR DO YOU HAVE A LINK?

Thanks in advance!

boomer1b

http://www.gmoutlet.com

phkck

see 870. The e-mail they send back to you is pretty informative. Sounds like some local dealers don't like to discount the extended because it hurts their average sale price which may be used to calculate bonus money for the F&I guys.

driftracer

from a former F&I guy...

driftracer

if you do your research and reading, and are still willing to pay $1800 for a warranty that the GM outlet has for $900, well, that's pretty foolish.

If the F&I manager wants to triple the cost of the warranty, inform them that you'd like a warranty, but you've done your research and feel that a fair price is $xxx. The F&I guy can either play by your rules, or you can pass on it at delivery and buy it online.

There's no way I'd recommend 1 Source or Warranty Direct, having researched both, and worked as a service manager hadnling claims with these companies.

mitzij

Please read driftracer's excellent post, #874.

Also, the Better Business Bureau does not rate companies. The A rating you find on the "tip" site is the AMBest rating for the insurance company backing Warranty Direct. AMBest changed it's rating last year. It went down to a B+, then changed to no rating because the company being rated didn't like AMBest's opinion. Extrapolate what you will from that information.

151ranch

Just to be fair
As opposed to Ford ESP---

WD: "We do not cover vehicles with twin-turbo engines, modified vehicles or vehicles used for commercial purposes"

Ford ESP: "What is not covered by this agreement...the installation or use of any part not approved, certified or authorized by the Vehicle's manufacturer...any part designated for 'off-road use only' that is not installed by the manufacturer, including, but not limited to, lift kits, oversized tires,...roll bars, cellular phones, alarm systems, automatic starting systems and performance-enhancing powertrain components."

WD: "Any controversy or claim arising out of or relating to this Contract, or breach thereof, will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association"

Ford ESP: "Dispute resolution & arbitration: Either You or We may choose to have any dispute related to this Agreement, the Application or the solicitation or sale of the service contract and related coverages under this Agreement decided by binding arbitration."

WD: "CAR RENTAL: We will, in the event of a Failure covered by this Contract, pay or reimburse You for receipted expenses to rent replacement transportation (from a Dealer or licensed rental agency) while Your Vehicle is undergoing repair"

Ford ESP: "We will reimburse you for vehicle rental charges You actually incur up to $28 per day for Ford and Mercury vehicles and $35 per day for Lincoln for up to 10 days.."

WD: "Require Additional Evaluation, Inspection or Tear Down - Administrator may require an inspection prior to repair being completed. If a tear down is required to determine cause of Failure, Contract holder must authorize same. Notify Contract holder that if the repair is not covered, then Contract holder will be responsible for cost of the tear down. Repair facility should save all components requiring inspection, including fluids and filters. The Claims Advisor will arrange for the inspection. If inspection is not made within forty-eight (48) hours, contact the Claims Advisor."

Ford ESP: "Costs or expenses for the teardown, inspection or diagnosis of Failures not covered by this Agreement."

driftracer

and the chances of not getting a rental car at no cost to you, or paying for teardown UNLESS there is obvious signs of abuse, racing, or neglect, with either Ford, GM, or DCC contracts, is nil.

If you've abused, raced, or neglected your vehicles, it's very likely you'd pay teardown costs even under the basic factory warranty, if your service manager isn't asleep at the wheel.

With WD or OneSource, you're guaranteed to pay for teardown, or at least authorize it, and guaranteed to pay for a rental up front and challenge the company for reimbursement.

boomer1b

Don't be fooled by AM Best !!!!

At one time they rated Warranty Gold +++++
and where are they today ?

A few years back I got FOOLED by AM Best and their ratings and bought a ex-warranty from Liberty Natl. Warranty Corp......guess where they are today?

Once bitten ...twice shy..................LOL!

varuscelli

I live in Texas and recently bought a new Camry.

I have been considering an extended warranty (vehicle protection plan, whichever of many names they seem to go by) for the Camry. After some research, I came across the Toyota Financial Services Vehicle Protection Plans. Lots of folks argue the point that it's much better to get an original manufacturer plan than a third-party plan. The Toyota Vehicle Protection Plan seems to be available in about 80 percent of the states in the US.

But, from what I see on the toyotafinancial.com website, these Toyota manufacturer plans are not available in Texas (or AL, AR, FL, GA, HI, LA, MS, NC, OK, PR (Puerto Rico), and SC). Anyone know why those of us in these areas don't have access to the actual Toyota protection plans and must consider alternative extended warranties? Or am I mistaken in my interpretation of where the Toyota Vehicle Protection Plans are available? (From searching some old discussion topics here, it seems like these plans were available here in Texas not that long ago.

Strangely (to me), every Toyota dealership in our area seems to sell Scions now, and all of these Scions have extended vehicle protection plans that seem to be (or at least closely mirror) the Toyota Vehicle Protection Plans for Toyotas. Can anyone straighten me out on this? (I mean, why those of us in Texas who own Toyotas seemingly can't get the real protection plan from Toyota.) Thanks a bunch! (And I hope I'm wrong in my interpretation.)

driftracer

they're available, just under a different operating name, due to state licensing laws - I promise you can get a Toyota extended warranty in any state in the union, and any contract you buy in Ohio would be honored in Texas or California.

boomer1b

Do ya think it could be because of yotas different distributor regions ?

Gulf states etc....?????

Wheres Mackabee?.........HE would know !

driftracer

Toyota distribution regions are like their own countries, but they all share extended contracts and sales documents.

bluluv1

HELP ME OUT

I'm LOOKING TO PURCHASE A WARRANTY FOR MY FORD. I'VE BEEN LOOKING AT CONTINENTAL, 1 SOURCE, AND EXTENDED WARRANTY CORPORATION OF OHIO, AND AUTO WARRANTY BROKERS. COULD SOMEONE PLEASE LET ME KNOW WHICH ONE WILL PAY CLAIMS IF YOU HAVE YOUR STUFF IN PLACE! MY E-MAIL IS n2agape@msn.com..OR RECOMMEND A COMPANY!!!

wlbrown9

Unless you are past the original warranty period or miles, try www dot fordwarrantys dot com. That way you can get a real Ford ESP warranty and remove a lot of your worries about getting your claims paid.

151ranch

Yes, JM&A does their own stores, and Gulf States (that's what you have in Texas) does their own, too. No "corporate" Toyota contracts in those states. I imagine that JM&A and Gulf States are probably a better risk than some of the factory plans! talk about a license to print money.....

I thought that the distributors could use the Toyota name for their contracts, but in Texas I think Gulf States is licensed as GS Administrators dba Paragon. I don't think you would have any problems with a service contract from Gulf States or JM&A.

driftracer

as far as the Magnusson-Moss Act is concerned, the Gulf States warranty IS the factory warranty.

varuscelli

Thanks for the comments.

I called one of the local Toyota dealerships here in the Houston, Texas area and talked to someone in finance. The available plans he described to me sounded just like (and were named the same as) the plans described on the Toyota Financial Services website (their Platinum Vehicle Protection Plan, etc.). I'm just not seeing why, on that particular site (www.toyotafinancial.com) they would outright say that the states mentioned did not have these plans available.

To quote the Toyota Financial Services website directly:

"Please note: Toyota Financial Services vehicle protection programs are not available in the following areas: AL, AR, FL, GA, HI, LA, MS, NC, OK, PR, SC, and TX."

Reading that statement alone (and especially where I read it) made me really concerned that I would not have the option to consider a true Toyota plan and that perhaps the dealerships in those states were offering some kind of modified third-party protection plans. (On the Toyota Financial Services site, they even go so far as to exclude those states from the dropdown menu that would allow you to start researching plan possibilities offered in your state for your vehicle, if you were in one of the alleged excluded states.)

I'm glad to find out this is not the case.

driftracer

"Gulf States Toyota Financial Services Vehicle Protection Plans"....