Extended Warranties

jipster

The cost for the government to assist with warranty coverage would be minimal, about a month or two of what we spend on the war in Iraq. New vehicles are extremely reliable, and the period of warranty coverage wouldn't last but 3 or 4 years (The length of a standard bumper to bumper warranty)... so comparing the government backing Chryslers and G.M's warranty's to Englands health care system is ridiculous. The U.S government hasn't gone bankrupt in the 233 year history of it's existence (knock on wood), so yeah... I'll take Obama and that bag of money over a third party warranty any day of the week.

Who exactly can you go after if they don't want to pay claims? Who pays for your claims?

Ask the people who had Warranty Gold policies. :P

deltheking

Just the same ramble 3rd party warr. companies give when there is a claim!! :sick:
Don`t tell us your warr. are more secure than the US govt itself.Duh!!No one is going to believe that.
If what I said is ramble ,then I don`t know how u handle claims??
But I must appreciate- You are a very dedicated agent trying to promote an ext.warr.Your company must be proud of you.

But folks here know- 3rd party aftermarket warranty is crap junk :lemon: ++ always go with manufacturer warr. :shades:

mitzij

Educational website you've got there. You might want to avoid telling people you're selling 'extended warranties'. They're service contracts. I'm no lawyer, but you might get yourself into some hot water by not disclosing that on your site. Yes, there is a difference.

You might fork out a bit more information as well, such as what companies' contracts your selling, what coverages are available, what an 'extended warranty' is, why they should buy from you and not from the other 500000 sites selling service contracts... Customers don't want to give you an e-mail address to get basic information. I'd even recommend a link to a sample contract. Unless you don't want people to read what they're buying?

It's funny you say you're cutting out the middleman! You ARE the middleman! No different from a dealership, or any other website, selling a service contract!
Considering the hit count on the bottom of the screen, you're just starting out in the selling-service-contracts-on-the-internet business. You have a ton of competition, people just like yourself wanting to make a profit by advertising and selling service contracts.

Btw, how did you get a ".org"? I thought that was for nonprofits and the like.

tidester

Btw, how did you get a ".org"?

Anybody can get a .org. I have one myself and no one ever inquired about whether I was commercial or nonprofit when I registered. Nevertheless, I'd be wary of anyone using a .org to sell stuff.

tidester, host
SUVs and Smart Shopper

stewpidaso

Unless we WANT warranty companies run like the post office and Washington DC

Yeah like the post office I get my mail everyday rain, sleet or shine. like clockwork its amazing:)

joel0622

I think people are missing something on this whole BK thing. It is not like if Joe Q Public goes out, files. These Companies would be filing Chapter 11 and reorganizing there debt. It is a fancy way to say a bunch of people are going to get screwed. But not the general public. The company would go no where and they would still be here to service the warranty. Hell it would help them big time because it would void there agreement with the UAW, basically it would bust the union and they would be in great shape then

golic

Just like the Union contracts you state in your post, the Bankruptcy court could approve any modification or termination to the existing warranty contracts.

joel0622

Do you really think the goverment is going to nullify the warranty on millions of cars? Not saying they wouldn't but I would say it is about a 1% chance

jipster

I believe Obama was speaking of a situation where Chrysler or G.M would not be in a position to honor warranties (Chapter 13?). To reassure those on the bubble as to whether or not to buy domestic, because of fear in warranties not being honored, he offered government backing of warranties from those two manufacturers. Which I think is only fair considering all the bail out money the manufacturers have gotten.

golic

Obama has already said the US will back the warranties. But I also don't think we will see the end of the UAW either. Too strong a lobby, too many voters, too much a staple of the political culture. GM will eventually have the same contract parameters as Ford.

Major concessions, yes. But still will have a higher labor burden rate than the foreign shops on US soil.

deltheking

Folks,,This guy is a major rip off scam artist.The coverage is basically useless.
I emailed him- he sent me the info.Well the info was printed like an amateur.He could have copied it from anywhere.
No company name ,address,phone #,BBB rating--- Nothing,zilch,nada.And he did not send me the list of exclusions..
Be very careful of this guy.He is promoting his scam warr.
I think the mods should delete all his posts.
Buyer beware,,save your hard earned money. :sick:

mikefm58

I've asked repeatedly on this forum for him to send me something about his warranty, pointing out my email addy is in my public profile, nothing so far. I've even gone to his site filling in information to send me a quote, and nothing so far.

I've seen nothing from him to inidcate he is legit. I'll give him credit, he does talk a good game, but is easy for a knowledgeable person to see through.

sharonohio

After buying a new Cobalt last month, I (rightly or wrongly) bought an extended warranty through the dealership (a Fidelity 7yr/70,000mi warranty for $1040). I asked that if GM would not honor the mfgr warranty because of this bankruptcy possibility, would this warranty cover me and he said "yes." Is this true? He also told me that the government will only back warranties on cars purchased when and if bankruptcy takes place, not for cars bought before that time.
I'm also looking into the GEICO warranty that's been talked about here and considering cancelling the one I bought. Any additional comment on which one I should go with would be greatly appreciated.

mikefm58

IMO, the GM warranty is your best bet, even with BK looming. The good ole USofA and Barack Obama will cover you, even if GM goes completely belly up, which is extremely unlikely. Fidelity and Geico are all after market 3rd party warranties and you won't find a recommendation here for either, (except sales folks like most recently rnixon), that sell these types of warranties.

And 7yr/70K miles isn't that much extra coverage over GM's basic and power train warranties, and at a grand is quite expensive. I'd recommend cancelling the warranty and getting your money back.

deltheking

Sharonohio,
I think it`a very good decision to buy an Extended warranty especially for chevy Cobalt.
But as folks here on Edmunds will tell you,,like in Mike above -- Never ever buy an aftermarket 3rd party warranty including Fidelity or Geico.Geico is good for auto insurance,,I have one,,but not sure for ext.warranty.

All aftermarket warranties are worthless,expensive and they never pay any claims.A lot of folks here were burnt by Warranty Gold.
And Fidelity has so many complaints regarding claims and exclusions.

My advice as will other folks here will tell you-- Never buy a 3rd party warranty.
So cancel your Fidelity warranty immediately.Normally you have a period of about 60 days to cancel it.
Get a original Manufacturer factory warranty from GM.You can look up the details on GM/Chevy website.And u can buy it from any Chevy/GM dealer in USA.As to which dealer to buy it from ,,search the internet for GM original warranties or GM/Chevy forums online-- these usually have info about this and the prices paid for the coverage.

But first cancel the Fidelity warranty!!!

mitzij

To build on the previous posts:
Be sure you know what you purchased.
It's not a warranty.
It's not bumper-to-bumper.
It's a company that has agreed to pay for repairs to your car IF the repair is covered by the contract. They have the right to pay for labor time (and rate) that they determine is appropriate, they have the right to pay for parts based on their idea of 'fair value'. You have to follow their rules before they will fork out any payment on your behalf. You are giving them control over repairs to your vehicle. If you're ok with that, fine, but be forewarned.

Be sure to read the contract thoroughly. Understand what they pay for, how, and what the limits are. Fidelity's contracts have many loopholes. Be aware of them.

rnixon

Really, a president who has spent more in three months than the previous 44 presidents combined. I understand that you like him for some reason, but naivety does not serve you well.

tidester

I don't think we need a political flame out so let's move off politics and stick with discussing extended warranties. Thanks.

tidester, host
SUVs and Smart Shopper

rnixon

It does say on website Extended Service Agreement AKA 'extended warranty' (go look, autofinanceservices.org)
I have a contract I send out to customers, but I won't put a blanket contract up because If someone elects for lessor coverage or less mileage they will not see what I send them, they will only see what's stuck up on a website. That's why i'm careful not to do that, when I know what someone is eligible to get, then I can show options. To blanket something or show examples would be somewhat reckless on my part. I want people to read what they buy, then when something arises, they know what they have, that's why we have very little trouble, I don't hide things, but I also don't put things out there for people that aren't eligible for them.

By the way I am cutting out one of the middle men! There are usually three layers of people between the warranty company and the end user of a warranty.
1. There is the marketing company that the warranty company contracts with.
2. Then there's the agent to the dealer that gets his cut for taking care of dealer.
3. There's the finance manager who has to make a profit after 2 other entities have
sliced off their part.

With me, it's warranty company, me. That's it. No marketing no agent no dealer.

No, .orgs are for profit and non profit alike, no designation, it's just that they started using it first. Yes, pretty new to internet, been doing on statewide basis for quite a few years, still very busy with that, but that's the reason for branching out.
I differentiate because I don't have to make big profit. For like coverage I will be much cheaper, and if for some reason I wasn't , you better buy it because you're getting a great deal. Different companies fill different niches and have different acctuarial equations they use, so sometimes I get beat because a company doesn't have as much history with a particular vehicle and can't see as big of loss as another one does. Sometimes this works out great for the consumer.
I keep cost low and do advertise locally, I'm confident exposure and word of mouth will get me going, surely but slowly. I just want to provide service and do well and in the process help a few people along the way. Already have done this for years and I think the naysayers here would come around if they knew me a little better.

rnixon

For the last time, not an agent, no commision structure on my warranties, that's how I'm cheaper. By the way I am the company, I have no one over me, I contract with the companies on this endeavor. And they're not 'proud', they have a business arrangement that we, and customers benefit from. You telling someone a third party is not as good, is like saying insure your car with AIG instead of someone like Liberty Mutual (who I personally and professionally use), because AIG is so much bigger and more secure. Oh that's right, the government had to pull them out of the fire and now they are trying to shed asset and spin off companies. Now they owe hundreds of BILLIONS to the fed. gvt, that they won't be able to pay off without cutting expenses (denying claims). You don't have to be super large to be good and you don't have to affiliated with a manufacturer to be credible and relevant. Oh, and if manufacturers are sooo good, why is it that fords factory warranty would only peice meal fix my brothers ford f350 diesel instead of fixing the real problem, which would have been very costly, even though it now stays in the shop half the time for the same avoidable problem that they won't spring to fix. See a company with a good business accument would bite the bullet and fix the real problem once and be done with it

rnixon

OK, you're full of it, I don't know what your agenda is, but I resent being called a scam artist, and what you got is what anyone that goes to a dealer gets, because I use it in my dealership. Lying to try to make yourself look right is wrong and it's slander. My best friends and my family buy from me, I have nothing to hide, but I would advise you not to ever use the words scam artist when referring to me again.

tidester

I think it's time we got back to discussing extended warranties.

tidester, host
SUVs and Smart Shopper

sharonohio

Why didn't the dealer offer an GM extended warranty when I bought it instead of the Fidelity one? Is it just that they make more money from the FWS one?

And this whole thing about '"will they honor the warranty if they go bankrupt?" According to MSNBC, the gov will only back them if the car was purchased AFTER that bankruptcy date, if and when that happens. So wouldn't an extended GM warranty also be worthless?

Sorry if I'm beating a dead horse here, but I'm just trying to make the most informed decision.

mitzij

They make more money off the Fidelity service contract.

I think people are getting confused about the government's promise to cover warranties. They're talking about the manufacturer's 3/36 warranty against defects. It's not the same as the service contract you're asking about.

I reckon there will be provisions to take care of any outstanding GMPP service contracts when a bankruptcy occurs, but there's no way to know what the future will hold. I don't think GM could get by with the cut-and-run trick that other defunct service contract companies have gotten by with. This is one situation where the drive-by media might actually do the consumers some good.

In your situation, I'd cancel the Fidelity contract and hold tight to my money. You have control over your vehicle--take good care of it and you will be just fine.

rnixon

She's right they make more money on fidelity warranties. GMPP's are expensive, and most GM dealers shy away from selling for that reason. Yes your factory warr will be honored, no matter what, but GM extended warranties are actually a separate business entity than GM, so that part will be up in the air for a while. I personally don't like Fidelity service agreements (warranties) because I've had some problems with them paying, I always got my money, but had to beat them up on the phones sometimes to get it.

deltheking

Sharaonohio,
Yes the dealer makes more money on a 3rdparty warranty than the factory one.That`s why they offer you that.
But the aftermarket warranties are worthless- they have so many exclusions and they don`t pay any claims.
So go ahead and cancel the Fidelity warranty.Fidelity has horrible BBB ratings and they are a big ripoff.
Buy an original manufacturer factory GM warranty from any dealer in USA.You can do an online search or look up Chevy/GM forums for the dealers selling this.
A Chevy Cobalt definitely needs an extended warranty ,,an origina lFactory GM :shades: warranty,,that is...

mitzij

In defense of the Cobalt-they are sturdy little buggers. Have seen few problems out of them. Too soon to really tell if there will be trouble on higher mileage ones, but the ones we've seen so far have been very good. Their cousin, the HHR has a good record so far, as well.
(in the interest of full disclosure-I work for a Chevy dealer)

rnixon

I get asked for info. everyday, and give it. If you didn't get it request again, and let me know it's you and I'll make SURE you get it. I don't hide, and for ol' deltheking to say it looks like something you could copy anywhere tells me, he either doesn't have a clue what he's talking about or is just being plain dishonest.
You guys out there following, please go see for yourself, don't take the word of a knowitall without the guts to back it up as I have. I went to the trouble to set up a site, I negotiated with companies to do this and I put myself out there. I'M NOT HIDING ANYTHING!

jipster

Sharon, I can do the same wrap 7/70k for 691.00 with a reputable company that I will be GLAD to send you info on, it you want to fill out your car info on my website.


It's one thing to provide information... it's another to solicit business. :mad:

Hosts, kindly show him the door. :surprise:

mitzij

Most dealers sell aftermarket service contracts, as well as Manufacturer-backed plans. You'll notice those of us here who recommend mf-backed plans call them 'manufacturer-backed', not 'dealer'. 'Dealer warranty' is a bigger misnomer than 'extended warranty' in my book. Some dealerships sell service contracts that are only good at their shop, and are backed only by the owner of the 'ship.

Advertising is disallowed on this forum; a moderator has been informed.

rnixon

I answered a question and gave an option, nothing wrong if it betters her position, I answer a lot of questions here without saying who I am.

deltheking

Dude,, I am neither dishonest and I do know what I am talking.
I have owned Toyota,Honda,Saturn,Dodge,Nissan cars ,,so I know quite a lot about cars .My profession is totally different from the car industry,,,unlike you .Just that cars have been a childhood hobby.
Also soliciting business on this forum is illegal,,so please stop doing it :sick:
Again folks here will tell u-- 3rd party warranties are junk,,,manuf. warr. are the best.You can use them at any dealer in US.
Folks who visit these forums have genuine concerns about their cars and they are not brokers like u who come and spam these boards.

Again ,,,folks here will tell :shades: u,, all 3rd party warranties are junk,crap,worthless-- and Original factory manuf . warr is always the best.Original is original,,duplicate is duplicate!!

mikefm58

Sharon, I can do the same wrap 7/70k for 691.00 with a reputable company that I will be GLAD to send you info on, it you want to fill out your car info on my website.

You are clearly violating the terms of service by soliciting for business. If you don't see that, then you need help. I will be surprised if you are not banned by tomorrow morning.

mitchflorida

It only costs $66 a year, covers everything except wear and tear, and has a $250 deductable. You can also wait until the car is one year old to purchase the coverage.

I live in Florida, so it is impossible to get a really low rate on the Internet for a Honda factory warranty, you have to buy from a florida dealership, not out of state.

The deductable is pretty high, but I dont expect to be using it except for emergencies anyway, Honda usually is pretty reliable.

Has anyone filed a claim with Geico yet?

deltheking

Geico only covers new cars -- you have to be the 1st owner of the car,bought new and I think within 6 months.
So not an option for used cars.
I am not sure of their coverage but I think it has lots of exclusions.
You can get Honda ext.original factory warr. for a decent price online-- search google or search Honda forums online.
My advice-- even if little higher,,go with Honda factory warr.Just MHO.

rnixon

Manufacturer backed in many cases, with a couple of exceptions, usually means manufacturer sponsored. Many manufacturers contract with other warranty companies to do their warranties. Those of you working in dealerships should know that if you've been doing this a while.

rnixon

So you finally let everyone know you're not in the car business. Well I am and I ACTUALLY know how well warranties pay and who pays, because I ACTUALLY work in that business. I ACTUALLY know that third parties pay dealers more and that we in the management make out better in the long run with aftermarkets. Not only because we get paid more but make more off of them. Just because you read and have personal experience makes you no more an expert in this business, that having the ability to eat and really knowing what good food, and calling yourself a culinary expert! I know a lot about a lot of things but I keep my expert advise to the industry I live in 6 days a week.

rnixon

Oh, and another thing, aftermarket warranties can generally be used anywhere there's a certified mechanic, not JUST that particular car lines dealer. I have had several customers in the last eleven years call me from the middle of nowhere and broken down. The warranty company allowed an uncertified mechanic to fix cars to get these people taken care of, because it had to be done, and two of those people were in Alaska, each over 200 miles from the nearest certified mechanic. So don't tell people the MF backed warranties are the only way to go. It clearly is not, Mr I don't work in the car industry but I'm going to talk like an expert.

rnixon

Had experience with them in dealership, they are hard to get money out of and coverage is usually stated coverage, not exclusionary. (unless they've changed coverage in last few years) Stated coverage is 'stated' in policy and that's ALL that's covered. Exclusionary gives you a list of exclusions, pretty much just normal maintainence and wear and tear stuff, and everything outside that list is covered. Always get exclusionary when possible (not always possible on used), it gives you better insurance against any possible denial. If it doesnt say excluded on policy then there's no question of coverage.

rnixon

You know I've been to almost every state and 4 countries, I guess that makes me a travel expert, think I'll start my own travel agency and write a blog

rnixon

guess not

joel0622

In the 15 years I have spent in the car biz I have been duped into offering AM VSC's twice and ended up throwing them in the trash both times. Neither one of them delivered as promised.

There is nothing comparable to a the Manufactures plan. I have never had a claim denied, never had to wait for some one to come in 3 days later and inspect the car prior to authorizing repair and we don't have to wait on our money. All things I had to do with the sub standard AM VSC's, and all things that inconvienced the customer.

The thing people don't think about is when some one sells you a bill of goods and you offer it to the consumer it is not the AM rep who has to listen to the consumer [non-permissible content removed] about the crappy VSC, it is me, the guy that sold it to them based of the empty promises the provider made. You can have your bigger commisions on your AM crap. A $100 a copy or soisn't worth the headache to me.

BTW I was under the impression we still had a no solicitation rule here. If it changed some one please tell me so I can start offering a good product.

rnixon

If you've never had to wait for an inspector? That's a little hard to believe, I was over a Cadillac and Saturn store at the same time and my reports always had at least one pending inspection from the Man. warranty (along with the other warranties) When I had a Ford store it was worse with the factory. Almost every diesel had to be inspected to be fixed, they came out and checked for everything from chips to dirty air filters to try and deny claims. Don't mislead people that that never happens. My own brother in Little Rock Arkansas had to sell his diesel F350 because of the trouble and the fact that Ford wouldn't fix the bigger problem and he was weeks in the shop, every single time he took it in because of waiting for inspectors or approval. His wrap warranty (aftermarket) that he had for things other than engine, paid immediately and sent no inspector when he he had compressor go out and had a suspension problem. Thats been over the last three years, and it's pretty indicative of what I seen in the dealership

mikefm58

guess not

Sometimes our gracious hosts take a while to catch up.

rnixon

Maybe sometimes they just see that more than one opinion is needed for a real debate.

lukalee

I am considering buying a 2003 C240 Mercedes Benz 4matic from a small independent auto dealer. I am not sure to purchase one in the deal and what brands warranties are better than others for MB. Can I buy a MB extended warranty from the same dealer or only what he has to offer?

rnixon

If he's independent, he won't be able to sell mercedes warranty. Most reputable warranty companies won't do business with a small lot, unless they're really churning out volume. Better off looking elsewhere.

tidester

Hey, folks, this vitriol has gone on long enough. I've done a little housekeeping in case you're wondering where your messages went.

I want to make this clear. Business solicitation and promotion are violations of our Member Agreement. In addition, we insist that the discussion remain civil and respectful as well as ON TOPIC!

Now, please, let's return to discussing Extended Warranties. :mad:

tidester, host
SUVs and Smart Shopper

deltheking

Thanks Tidester for deleting all those posts.
Yes,,,we can get back to the topic!!!
That`s what we always do!!

deltheking

Folks,,,I think,,,it is time to move on ..now that we already know that Rnixon was promoting his website and was a scammer.
Time to get to the real issues here...I think we should all stop responding to rnixon`s posts!!
I have a question-- can u get a factory/manuf. ext warr. even after the original B2b has expired...Say if u are 55k miles and within 3yrs but B2B of 36k/3yr has expired??