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Extended Warranties

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Comments

  • mitzijmitzij Member Posts: 613
    No problem.
    A 3/36 service contract might come in handy IF it pays for rentals and your dealer does not give you a loaner (most dealers do give loaners when requested up front).
    Also pay attention to how much rental coverage there actually is. Most contracts require a certain number of 'billed labor hours' before paying for a rental. For example, if your transmission goes out. That's about 10 hours labor (number from my head). Your contract pays 1 day for every 5 billed labor hours. That's two days rental. Naturally, the shop has to order the transmission, so there's 3 or 4 days wait just to get parts. Service contract won't pay for that 3 or 4 days. Just 2. You foot the bill for the rest, including any weekends involved.

    If you're planning on buying a new vehicle in a few years, chances are you won't reap the benefits of a service contract. Transferring a service contract is easier said than done, some I've read require the owner to provide proof of all maintenance done in addition to a $50 or $100 fee.

    As for the 'car buying tips' website being advertised, that guy gets paid every time you click on a link to his favorite service contract companies. That's why he backs them, NOT because they are so great. If you follow his 'advice' and not go with any service contract company whose insurer is not rated A, you can't go with Warranty Direct or One Source. WD's primary insurer is not rated (last rating was B-, WD requested to not be rated anymore) and One Source's primary has no rating due to lack of information.

    If you want good, solid advice, stick with Edmunds. Many of the people here are knowledgeable and want to be helpful. The site itself is very handy.
    (and No, I didn't get paid to say that) :P
  • hydroguyhydroguy Member Posts: 1
    my 1999 honda passport (78,000 miles) blew the engine, ESP says lack of maintenance even after submitting proof of maintenance for the whole 14 months I owned the vehicle, any advise on what route to take?
  • teacher2teacher2 Member Posts: 4
    I thought this site recommends Warranty Direct?
  • boomchekboomchek Member Posts: 5,516
    Did you have extended warranty? Because it soundslike it would be out of factory warranty anyways.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • mitzijmitzij Member Posts: 613
    Actually, no. Edmunds gets paid to advertise Warranty Direct, but in their essays about service contracts, they make no recommendation. They say to do your research and make your own decision.
  • mitzijmitzij Member Posts: 613
    They probably expect you to have proof of maintenance from 1999 on. Did you purchase the contract when you purchased the car? If the ESP had you pay for an inspection when you bought the contract, you should be covered. (some do, some don't) There's probably some wording in the contract to the effect of 'all maintenance records from the dawn of time must be kept with the vehicle and produced anytime we ask for them, or else we don't have to pay you a dime.'

    You might be able to dispute the decision, try going up the ESP's chain of command, or find the previous owner and get him to cough up copies of his old records.

    These companies do know how to write binding contracts, however, they're reaaaalllly good at it.
  • sean3sean3 Member Posts: 158
    Foe somebody that doesn't quite trust an aftermarket warranty, I was thinking that making monthly payments on the plan? say a $1,400 plan wants 125.00 down and $125 montly for the next 11 months....that way say, 3 months down the road you have a pricey repair you have paid $500 in payments on the plan....and they give you trouble....you could withhold the next payment ...if they don't cover that one, and you wouldn't be out the other $900 if you had paid it up front, or the biggest part...actually getting a refund of monies paid so far???any ideas on this method for somebody who has been shafted by a prior warranty company, but can't shake the $ possible $3,000 engine repair????? Sean
  • sean3sean3 Member Posts: 158
    To add to my above post^ on the other token...say you have paid only one months worth($127.50) of you $1,400 plan and they make a $3,000 repair....who's to say they will see another payment from you?,,,,,or if you have a major repair that exceeds your total plan purchase price (1,400) will they ask for the whole thing if the repair exceeds your prchase plan price (1,400) befor it is paid in full? Example....I buy a 1,400 plan
    I pay 120 down
    Next month I pay another 120
    2 weeks later my Engine blows a head gasket.
    Repair cost 1,000
    they technically have 240 of my money on a 1,400
    will they want 1,000 in total monies before they make the repair???? Any Ideas.....not trying to sound paranoid, but I learned a couple years back that once they have you money you won't get it back////// :( Sean
  • sean3sean3 Member Posts: 158
    I just thought about my post and it made no sense , sorry..
    I was just thinking of a way to protect yourself from them having your full plan price monies, and then putting you through the ringer and/ or having trouble getting repairs or a plan refund....I guess them wanting you to pay it off in a years time kind of tells you that would give you trouble within say the first year? with any repair that exceeds the plan price...I called 1 source and they are very shady on reqirements on used cars (1999 with 68K) as far as inspection...what I understand is that you either wait 30 days AND 1,000 miles.....OR have it inspected for $195.00 cost to you......BUT if it fails inspection......YOU have no coverage at all...the only benefit to inspection is it would seem they would be less likely to deny a claim, because they had it inspected by a company that has interest in THEM, so that gives them peice of mind...I suppose. Is it Naive to think a company will sell you a protection plan without ever laying eyes upon the car...? Any Ideas?? Sean
  • justdjustd Member Posts: 2
    letting you all know; I'm researching and my head is swimming! Have been frequenting CarBuyingTips.com and appreciate the latest tips esp. re: rentals/billable labor. The last three years I'd averaged 25,000 miles, so maybe I'll be ok with a 3/36? Been to CarBuyingTips, utilizing Edmunds, too. At the rate I'm finding out what I've done wrong during this car buying process so far, there is a big dunce cup on my head.
  • mitzijmitzij Member Posts: 613
    You can't know Everything about Everything, it just isn't possible. Granted, researching BEFORE purchase is always better, but don't sweat it. Do you like your car? Does the price paid fit nicely in your budget? If so, you'll be just fine.

    If you've driven 25k miles in 3 years, and you're planning on selling your hotrod in less than 3 years, you aren't likely to be out of the manufacturer's bumper to bumper warranty when you sell it.

    An aftermarket service contract has as much selling power as a little green tree air freshener. You might get a little extra out of it, but a well maintained, nice looking low mileage 2 or 3 year vehicle is going to get decent money anyway.
    Having the car detailed before putting a 'for sale' sign in it will get you just as much, if not more of a boost in revenue.
  • sean3sean3 Member Posts: 158
    Even if you don't use you ESP once and are refunded the full price....They have made money on the interest of the initial deposit just like any other insurance company they invest your investment at a higher rate than an average savings account I am guessing....Sean
  • ls400lvrls400lvr Member Posts: 1
    I purchased a Warranty Gold warranty on my LS400. The company went backrupt. I got my money back via credit card chargeback. However, I don't have any warranty.

    Yesterday....my timing belt jumped a tooth. Started and clacked like heck. I shut it off w/i 5 seconds, tried to restart after checking oil, hard to turn engine. Hope it's just a belt....

    I need to contact T3 automotive...how do I get in touch?
  • geo9geo9 Member Posts: 735
    Sounds like you bent a few valves. BUMMER.......................
  • dawneedawnee Member Posts: 59
    We were offered an ext warranty, bumper to bumper, wrap type warranty to work with the 6yr/100,000 miles factory warr from Toyota at a price of approx $800 with a $50 ded. Now not sure if the ded was per visit or per repair. Question is does this sound worthwhile with Toyota's reputation and does anyone know anything about a company called JM&A, I think was the name on the brochure?

    I am considering this warranty but DH says no we will just take our chances and if car has major problems then we pay. We of course traded in car that was out of warr so if things had gone wrong on it, we would have had to pay. His feeling is we are in about the same boat, used car for used car but I am worrier. The previous owner did say he knew of no problems and had oil changed and tires rotated every 5,000 miles which most of miles on car are highway miles.

    Any recommendations on these Toyo dealer offered extended wrap warranties??? :confuse:
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi dawnee. Toyota's official extended warranty is very good. It basically acts as an extension of your vehicle's original warranty. If I was in the market for extended coverage on a Toyota, that is definitely the policy that I would choose. I am not sure how good the price that you were quoted is, but several community members have been able to get attractive price quoted from the following site in the past: http://www.toyotawarranty.com. Remember that in most states the selling prices of extended warranties are negotiable. Furthermore, you do not have to purchase your warranty from the dealer that you plan on having your truck serviced at. Shop around with a few dealers, either by phone, e-mail, or in person for price quotes on the level of coverage that you are interested in. Once you have gotten an attractive price, give the dealer that you pan on using for service the opportunity to match it. While you do not necessarily have to purchase your extended warranty from them, all things being equal it never hurts to. Having said all of this, Toyotas are very reliable vehicles. If I owned a 2003 Highlander, I personally would not buy an extended warranty for it. You may be more risk averse than I am though.

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  • dawneedawnee Member Posts: 59
    Thanks that is great info and thanks for the insight on Toyo's reliability although every vehicle is different.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome dawnee.

    Car_man
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  • chrisp96chrisp96 Member Posts: 13
    I'm shopping for an ext warranty for my '06 Toyota Highlander Hybrid. The selling dealership initially quoted over $2400 for it. When I refused, he kept dropping the price, and stopped at $1800; but only if I purchased the PrePaid Maintenance for $1200.... ;)
    In this forum, I see references to quotes from toyotawarranty.com.....Has anyone ever purchased a contract from that site?
  • tiny1tiny1 Member Posts: 26
    I would like to purchase an extended service contract for a 2002 MB CLK320 37k miles that I'm buying from a Lexus dealership (just out of factory warranty). Lexus offers a company that they exclusively do business with for $3500 (4/48). MB dealership will sell me their favorite for $3500. Warranty direct or 5 Star Warranty offers 5/100 for $2500. All are exclusion contracts that list what they do not cover. Does anyone have personal experience with the Warranty Direct or 5 Star? If so, do they pay their claims and look to stay in business for the next few years?? Would like to save 1k if possible...Does anyone have another reco??

    tks
  • danf1danf1 Member Posts: 897
    If you are going to get a warranty for this car, get the one that the Mercedes dealer is recommending. They are the ones who will be servicing your car, and if you have their preferred warranty their service writers will be happier. If you want to save some money, offer them less for their plan and see if they'll take it. Outside of Florida extended warranties are negotiable.
  • pcypherspcyphers Member Posts: 1
    Where did you get the information that these company's are "all parts of one big company"? I know that Warrantech is based in Dallas TX and American Guardian is based in Glen Ellyn IL. They also are insured by completely different companies. One is publicly held the other is private. Please tell me how I'm wrong.
  • mikefm58mikefm58 Member Posts: 2,882
    Good advice. Since you can't get a warranty backed by the manufacturer, get one that the dealer is recommending since if the warranty company goes belly up, "hopefully" the dealer will back it up.
    .
    I know folks that got burned by the Warranty Gold bankruptcy and those (like myself) that bought from them over the internet got nothing. But I've heard of folks who bought Warranty Gold through a dealer that were able to get the dealer to back things up somewhat.
  • mitzijmitzij Member Posts: 613
    Well, when I make a claim with either company, I call the same place. The faxes they send me back all say 'Motor Vehicle Protection Corp.' They show the other company names grouped together, kinda like a lawyer's group: "Piedmont, Jefferson, Kimmel, and Schmitz". If you bought your contract before 2002, you are under 'Warranty Division', if you bought your contract after 2002, you are under 'American Guardian' It looks like they "restructured" in 2002. The faxes represent this group as all one company.
  • bobw3bobw3 Member Posts: 2,989
    I've read lots of posts talking about buying extended warranties, but does anyone have any experience in using them??

    I put a lot of miles on a car each year and with the past two cars I've owned I had to pay $500 to replace an alternator at 70,000 miles (3 years of driving) on my 99 Cougar and then had some A/C problems at 110,000 miles and another alternator and tension pulley. With my 91 Escort my first problem came at 115,000 miles (4 years of driving) with a water pump & alternator. I now have a Freestyle, but I'm thinking about an extended warranty, but in the way I'm driving (17,000 miles is 7 months) I'll probably run out of miles before years in any extended warranty. For the cost of the extended warranty, I'm wondering who out there has ever used it.

    To me it seem like your paying for insurance to cover any problems that happen between the end of the factory warranty and 60-100K miles and in my If there was an extended warranty out to 150K miles it might be worth it to me. But in the past, I've only had about $500 worth of problems before 100K miles. I just think that with most new cars only needing a tune up at 100K miles, then the extended warranties should go out farther. I just can't see paying $1000-$2000 for an extended warranty up to 100K miles, but maybe I've been lucky in not having any major problems prior to 100K miles?

    It just seems to me that extended warranties are just another scam to make the dealer or after market company some money. If they paid out more then they collected they'd be out of business, so that means on average they collect more than they pay out, so that on average people don't use the warranty. I guess the same could be said for any insurance, but to me a home owners or life insurance is more critical to really have, but if over the course of my life I have to pay $3000 one time for a transmission that went bad at 70K miles because I didn't have an extended warranty, then I figure I'm still ahead because I'm saving at least a thousand dollars on each new car that I don't buy an extended warranty. So far I'm up about $4000 because I didn't buy an extended warranty on my last three cars, so even if right now I spend $3000 on a repair I'm still up $1000....at least that's how I do my math!!
  • mikefm58mikefm58 Member Posts: 2,882
    " To me it seem like your paying for insurance to cover any problems that happen between the end of the factory warranty and 60-100K miles "

    That's all an extended warranty is, an insurance policy. And remember, on a manufacturer backed policy, the labor rates are less for the manufacturer and they're using their own parts. A $2K transmission to you and I costs them a fraction of that to put in.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bobw3. Extended warranty companies do not stay in business by paying more out in claims than they take in in premiums. Extended warranties are essentially a form of insurance. Some people who are risk averse feel comfort in knowing that they are covered if anything major goes wrong with their car or truck. There are other people who would rather roll the dice, save their money, and take the chance that they will not experience any major problems with their vehicles. There certainly is nothing wrong with buying an extended warranty if you buy an official manufacturer-backed policy and shop around to get a good price on it, but I personally belong in the latter group. I tend to buy reliable vehicles, maintain them well, and usually have a good idea of what is wrong with them if there is a problem.

    Car_man
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  • bobw3bobw3 Member Posts: 2,989
    Of course even if you buy reliable vehicles and maintain them well, that won't prevent you from being part of the statistical group that has a bad starter, alternator, water pump, A/C, tranny, etc... There's always the possibility that no matter how well you take care of a car that things may break. My only contention is that statistically that odds of having something go wrong are less than the odds of the person using the extended warranty (otherwise, like you said the companies selling the warranty would go out of business), so I don't think of not buying an extented warranty as a gamble, but saving me money in the long run.

    And while it's similar to insurance, there is a difference between paying $500/year for car insurance to cover a $25000 vehicle against a total loss, then paying an extra $1000 for an extended powertrain warranty to 100,000 miles against the possibility that I'll have a few thousand out of my pocket in the unlikely event that a major powertrain repair becomes necessary between 36,000 and 100,000 miles.

    But you're right that it's good for the risk adverse even if the risk is small. But to me it's almost like spending $2000/year for car insurance on a car worth only $5000.
  • raytahoeraytahoe Member Posts: 1
    I have read a bunch of opinions on this forum about the pros and cons of aftermarket warranties or service contracts. Although there are risks to any plan and corporations have to make money it is in the best interest of companies that want to stay in business to provide a good service to their customers.

    I am looking for examples of extended warranty plans that have provided a benefit to the consumer. Good experiences people have had with any company and recommendations about which companies are likely to be in business over the term of my contract.

    Does anyone have any good warranty experiences with any companies to share?
  • danf1danf1 Member Posts: 897
    I had an aftermarket warranty on an Audi TT. It was through Easy Care which is underwritten by APCO. They are the same company that writes Ford Warranties and Honda Care extended warranties. I had 3 claims paid with no hassle at all from the servicing dealership. The warranty more than paid for itself, but it was a trouble prone vehicle.

    It is best to check with the dealer where you will have your car serviced to see what they would recomend. It may not be the cheapest, but if you know in advance that the dealer will accept it, then you should be safe.
  • audia8qaudia8q Member Posts: 3,138
    The good thing about easycare/APCO warranties is they are wholly owned by Ford....They arent going anywhere.

    It's those mysterious warranties that are backed by some shell corp in little obscure caribbean countries that end up screwing people.
  • mitzijmitzij Member Posts: 613
    On the claims side, Easycare is fairly easy to deal with. They do take awhile to decide if an item is covered, but once they OK a repair, they do pay up. They do have limits on labor time/rate, as well as a desire to use non-OEM parts. Generally, they have been OK, though I've only dealt with them a few times.

    This is not an endorsement of Easycare. My opinion of service contracts stands.(see published works)
    I'm just reporting my experience dealing with this company as a repair facility.
  • bobw3bobw3 Member Posts: 2,989
    When you say they have limits on labor time/rate and a desire to use non OEM parts, does that mean if you take it to a dealer for repair they won't pay whatever it takes? If I have an extended warranty and my transmission goes bad, if they're not going to pay the entire cost to get the transmission fixed, whatever the labor & parts rate, then it's a rip off in my book.
  • mitzijmitzij Member Posts: 613
    Yes. Their contract (as with most others) states they have the option to authorize OEM, aftermarket, or USED parts, at their discretion. They also control how much labor time they will pay per job. If you get a wiring or hard-to-diagnose problem, they won't pay my technician the 2 hours it took to figure out the fuel pump needs replaced. They will pay the actual time it takes to replace the pump (according to their labor time guide), and maybe 1/2 hour towards diagnosis. Today, I was able to sweet talk an adjuster up from 1.4 hr to 2.0 hrs on an engine mount job.

    There is also a cap on labor rate. I haven't hit any company's ceiling on rate, as I'm at $48.00 per hour.

    I haven't had Easycare try to send me a part "from the warehouse", but other companies have. One was willing to send me an alternator for a guy's truck, or pay me $120.00 towards the purchase of a GM alternator (which has lifetime guarantee, cost was several hundred dollars). The customer wanted the GM part. He had to pay the difference. My boss tells a story of one service contract company that kept sending junk transmissions (2 or 3) for a guy's vehicle until they finally caved and let us put in a GM tranny.

    These limits are always in the contracts.
    That's why I recommend, to anyone who wants to buy a service contract:
    Read the Whole Contract until you understand it.
  • macksubarumacksubaru Member Posts: 3
    HEEEEEEEEEEEELLLP! I JUST BOUGHT A 2001 SUBARU FORESTER WITH 78OOO MILE. I NEED A BUMPER TO BUMPER WARRANTY FOR 3/4 YEARS.
    SUBARU WON'T DO IT (BECAUSE THE CAR IS OUT OF WARRANTY RIGHT NOW).
    ANY IDEA, PLEASSSSSSE?
    CRISTIANA :confuse:
  • macksubarumacksubaru Member Posts: 3
    SO WHICH EXTENDED WARRANTY COMPANY :) WOULD YOU RECOMEND?
  • bobw3bobw3 Member Posts: 2,989
    Now I'm especially glad I never purchased an extended warranty!
  • mikefm58mikefm58 Member Posts: 2,882
    Sorry I don't have a recommendation for an after market warranty, but caps off please, you're killing my eyes.
  • macksubarumacksubaru Member Posts: 3
    subaru, 2001, 78k....which warranty would you recomend?
  • danf1danf1 Member Posts: 897
    Call your dealer's service department and see what they would recomend for you. They are the ones who will be servicing, so my recomendation may not be any good for you.
  • turbomojoturbomojo Member Posts: 1
    I went through warrantydeals.com and they got quotes from Mercury of 7 years/75,000 miles for $1486.00 at $100.00 deductible and $1563.00 (averages out to $18.00 per month for 7 years of coverage or approx...20 cents/mile ) at $50.00 deductible. No deductible is $51.00 more - that's "Gold Service" and includes among other things - choosing your own (licensed) repair shop, transferable on selling car (one time) and cancellation options. This is on a 2004 mini-cooper - One of the better quotes I have found so far....If that helps

    turbomojo
  • caf49caf49 Member Posts: 6
    We owned a 2000 Windstar and the 1Source Warranty we bought was an investment that more than paid for itself. Overall, they were OK to deal with. We got into a couple of "fights" over tie rods replacement and when the tranny failed, they wanted to put in a "brand X" instead of a Ford-certifed one. Unfortunately it took my strenuous objection to this idea to disuade them - but it did work out to our satisfaction - they ending up realizing the right thing to do.
    Would I recommend them? Yes, I believe I would. They rarely sweated the smaller stuff.
  • usvsthemusvsthem Member Posts: 1
    fyi... before you finalize your deal for a new car including a service contract (extended service plan), be sure to call the MFG's Service Contract department directly. They will be able to provide you with their quote at the retail cost of the plan. This will ensure that you know what the plan will cost before the dealership tries to sell you it at a marked up price above retail. In some cases, the MFG can offer the plan at no interest, monthly payments.

    Example 1800-521-9922 for DaimerChrysler Service Contracts.
  • bobw3bobw3 Member Posts: 2,989
    What did the extended warranty repairs cover? What broke and at how many thousand miles? And what was the cost of the extended warranty and for how many years/mileage/deductable? thanks for the info.
  • tiny1tiny1 Member Posts: 26
    Just bought a 2002 Mercedes Benz CLK55 AMG with 39k miles. This car has original factory warranty thru Jan 2006 and is certified (CPO) thru Jan 2007. I just just received a quote for $2.5k that would provide an exclusionary warranty for 5 years/100k miles. Has anyone had dealings with 5 Star Warranty?? I would like something past Jan 07 in terms of warranty...if possible, and most companies are shy of the big V8 and AMG package.

    Appreciate any advice, Scot
  • nortsr1nortsr1 Member Posts: 1,060
    I truly believe you had better check with the Mercedes service manager before you purchase a non OEM warranty. If they won't accept it, what good will it be??? Too many horror stories about non OEM warranties.
  • caf49caf49 Member Posts: 6
    It was a bumper to bumper warranty that covered virtually everything but the "wear and tear" stuff.
    - Tie rods began failing at 60K
    - Door lock actuator at 62K
    - Transmission at 70K
    - Heater hose bundle leaked at TEE at 65K: a known Windstar issue, considered 'wear and tear', VERY expensive fix not covered.
    - ...other stuff can't quite remember 'em all.
    1Source Warranty cost $1485/$0 deductible for 84K and 7 years.
  • liferulesliferules Member Posts: 531
    It is my understanding that these warranties are from the inital purchase of the car, so 5yr/100K would end 2007 which is when your CPO would end anyway.

    Am I wrong?
  • tiny1tiny1 Member Posts: 26
    The 5/100 would start now. (5 additional years and up to a total of 100k miles) The only downside is that it would overlap a year of CPO...but unfortunately, I can only get this rate while the car is under factory warranty - othrwise I would wait a year. Seems like no company will underwrite a MB with the AMG package....5Starwarranty is one that I've found that has had some positive response via posts earlier in this forum. 5Star uses Mercury Insurance...anyone had any experience??
  • tiny1tiny1 Member Posts: 26
    Thanks for the advice...I will check with the dealer. I'm kinda in a corner though. I would like some protection for the out years, and Merc Benz doesn't have anything to help. They offered to extend my CPO two additional years for $4,900 at the time of purchase....which was too high for me and they were not willing to negotiate price. Even Merc Benz puts a vey high tax on the AMG...Hmm, wonder if everyone is trying to tell me something about reliability of the AMG. It is a fun car...Appreciate any thoughts...
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