Extended Warranties

adrag

I had one for my Honda Civic Si. Sounded good at the time. Ended up being useless. First off, no repair shops recognized it. Second, the warranty covered things that hardly ever go wrong with a Honda or most cars for that matter. Third I believe it came out of pocket first then the company re-inverse me.
I did read the contract. It was long with a lot of small print. Most of these warranties are written with this in mind and will sound good. The warranty is offered right before you finalize buying the car. The anticipation of a new car and wanting everything to be perfect is the opportune time.

That is until you actually need it then everything becomes a lot more clear. The company that provided the warranty was blatant about letting me know the warranty was pretty much useless.
When I finally did try and use it. I would never do it again and advise others not to bother. Definitely don't listen to the car salesman.

aberfoyle

Hello everyone, I wish I had stopped in and posted prior to finding a specific vehicle I liked at a dealership. Anyways, I purchased a 2008 SR5 4Runner with 40k miles. When I went to financing, they offered me a 8yr 125k "Extra Care" Warranty for $1980. It already includes a 1yr/12 month warranty. but this seemed like a possible peace of mind. I can cancel the warranty up to 30 days after the date I purchased it and then they prorate after that if you cancel. Looking for input on the vehicle/extended warranty. Anyone that has used it or recommendations on even keeping it. The $1980 is about 8.3% of the cost of the vehicle, and it probably will overlap the current 1yr 12k miles cpo warranty. Coverage is good until April 2016, so I am only gonna get approximately 3 years and 6 months coverage since I likely wont drive 125k in the same time-frame.

If I did decide to cancel it, would anyone recommend a competitive warranty for a toyota product that is out of manufacturer warranty? Penfed was offering a 5yr 100k warranty for $1280 but its just a third party deal. Price seemed more reasonable and I can add it on at the end of the cpo warranty time-frame.

fushigi

Cancel it & put the money in the bank. $1980 will cover pretty much any repair up to a full engine or transmission replacement. Unless you think the car will need more than that in repairs, then it's way too expensive.

texases

I agree with everything above - cancel it, put the money in the bank, you'll likely never need it all. This is especially true if it's not a factory-backed warranty. Never buy a warranty from other than the factory, so many are next to useless. This should answer your second question.

You've just bought an exceptionally reliable vehicle, make the most of it!

Finally, expect the dealer to do everything possible (including lying to you) to stop you from cancelling. These are extremely high profit items, they will NOT want to let it go...

aberfoyle

Can anyone talk to me about what i bought through toyota? Its called "Extra Care" and im not sure if its even a legit toyota warranty.

texases

It might or might not be factory - backed - you'll need to read through the contract to see.

emcguire

you should never buy these things... trust me... i know... i used to sell them!

aberfoyle

2008 4Runner got the award for JD Power Most dependable/ Reliable vehicle. Already can tell a different on gas vs my xploder. Getting about 19mpg vs 14mpg. Even if I overpaid by $1000 for the vehicle, I am really happy with the extras. Gonna price out the carchex warranty and see if that makes sense. Wish I knew if I could get other toyota dealerships to compete for my extended warranty business. Wouldn't mind keeping the same warranty for 1k less. Anyone work at a toyota dealership and sell "Extra Care" warranties on CPO vehicles with over 36 miles?

texases

Let me say this clearly: do NOT buy any third party (non-Toyota) warranty, regardless of the price. Many have been proven worse than useless, with many rejected claims and bankruptcies. It doesn't matter what the price is. These companies are often investigated for fraud. Avoid them!

mickyjoy

Our family just purchased a used 2004 Yukon XL Denali with 65,000 miles. One owner. The car has been well taken care of, but we are undecided on whether to purchase an extended warranty. Everything I read is very contradicting. We did not want to finance the warranty, so it would be cash out of pocket. We were quoted $650 for 12 months/12,000 miles. Anyone have any thoughts they would like to share?

jtunnell

a4dave:

You just listed two (2) items that are specifically listed in their contract as NOT covered. This isn't in small print, nor is it "grey area"...they list like 20 or 30 items not covered, most of it belts, hoses, batteries, brake pads, etc...crap we've always paid for...anything else NOT listed is covered, or the other 5,000 parts on the car.

I'm in a GM certified service department and Olympicare pays out more than most...and when they don't it's ALWAYS plainly listed on the contract as not covered...not that people are excited to get that news anyway, but I've dealt with worse when you have to argue a case because the language is so vague. With that said, if you're buying a GM get the GMPP extended coverage...it's more expensive but your ball joint would have been covered.

spadesqueen

Purchased a 2007 Volvo S60 (37K). Dealer offered 2yr/24,000 Gold+ extended warranty w/Fidelity Warr Service for $2,200. Wife commutes approx 20,000 miles to work a year, so doesn't make much sense.

Should we re-negotiate, increase contract term or cancel? If so, any warranty suggestions are appreciated. Car was prev lease/1-owner/exc condition/all service&maintenance completed.

Thanks!

texases

Please look at the last few pages of comments, you'll find nobody in favor of these warranties.

Kirstie_H

That about sums it up - not much left to add.

skyfan1

Are you saying no extended warranties are worth it, or only that the third party warranties are never worth it? my Nissan Altima is about 1.8 years old and I have not quite decided whether I will purchase the extended warranty. I am thinking that even one major repair like a belt, for example, would make it worthwhile.

texases

3rd party warranties are never worth it to me because of the very high likelyhood of refusal of coverage because of shady or bankrupt sellers. Not all are, but many are, and have been widely exposed.

Factory backed warranties are not 'worth it', in that you'll likely get much less $$ out than you pay (that's why dealers push them so hard). But if you put a VERY high value on 'peace of mind', then, OK, I guess.

Your example of a belt would make me wonder if a wear item like that would even be covered.

My rule: if I can't afford the loss, buy the insurance. If I can afford the loss, cover it with money in the bank.

Kirstie_H

Belts are like brake pads - wear & tear item. Regular maintenance items as outlined in the owners' manual aren't covered under any extended warranty.

Many times, you can find the coverage listed online. If not, ask for a copy of it and read it carefully before even considering. In addition to the shady/bankruptcy issues, there are often many exclusions and loopholes to the contract provider's benefit.

andrew73

Hi,

I've just bought a 2003 Chevy Cavalier for 3900.

Before buying the car the dealer told me that the car would have needed some fixes (one front wheel bearing and one tie rod end needs to be changes).

Should I get an extended warranty and have them fix this issues in their policy? Even if I replaced myself this parts, should I still get an extended warranty?

Thanks,
Andrea

texases

No, usually not worth it, and I'd be surprised if one would cover existing problems.

robr2

...and I doubt you'll be able to get an extended warranty on a 9 YO used car that'll be any good.

walletless

I bought a brand new Nissan Altima 2012. While purchasing the car, the finance guy offered me the "Nissan Maintenance Plus" Package, which covers all the regular maintenance, oil changes, filter replacement, tire rotations, 30/60k service, etc. The price for this package was 1895+tax. It covers these factory-suggested maintenance for 5 years/75000 miles.

Is it worth it?
Nissan suggest's an oil & filter change every 3750 miles. So in 75000 miles, it's 20 oil/filter changes. Generally, each oil change is around $35 at non-dealerships, so thats $700.
Tire rotations are required once every 7500 miles. So 10 times. Each tire ration is around $15 at non-dealerships - so that's $150.
There is an "intermediate service" required at 15k, 45k, and 75k miles. The dealership cost for this is $289, so I am assuming most non-dealerships will do it for around $200.. so $600 for that.
30k/60k servicing is generally the most expensive. Dealership charges $660, but from my experience, it is $400 at non-dealerships. So $800 for that.

So, if I do all this maintenance myself, I expect to pay 700+150+600+800 = 2250.. so this seems like a good deal, right?

I have time before reaching 3750 miles to add/buy this package.. so what do people suggest?

texases

I wouldn't, even if your math is correct you may not be able to have the dealer do all these things. And you say 'Nissan suggets an oil&filter every 3750 miles'. Really? That's in the factory manual? Or is that in a dealer-supplied 'manual'? I'd be surprised if normal service required oil changes more often than 5000 or 7500 miles.

rayainsw

From the Nissan 'Service & Maintenance Guide (PDF, 732K) '
on their web site...

SCHEDULE 1 (more severe operating
conditions), every 3,750 miles or 3
months, whichever comes first
Use Schedule 1 if you primarily operate your
vehicle under any of these conditions:
● Repeated short trips of less than 5 miles in
normal temperatures or less than 10 miles in
freezing temperatures
● Stop-and-go traffic in hot weather or low
speed driving for long distances
● Driving in dusty conditions or on rough,
muddy, or salt-spread roads
● Towing a trailer, or using a camper or car-top
carrier

SCHEDULE 2 (less severe operating
conditions), every 7,500 miles or 6
months, whichever comes first.
Schedule 2 features 7,500-mile service inter-
vals; with Schedule 2 fewer maintenance items
are regularly checked or replaced than with
Schedule 1.
Generally, Schedule 2 applies only to highway
driving in temperate conditions. Use Schedule
2 only if you primarily operate your vehicle un-
der conditions other than those listed in
Schedule 1.

walletless

Thanks for the reply.

Yes, 3750 miles schedule is recommended in the Nissan Owners guide. I fall in the severe category because I will have repeated trips of <5 miles in normal temperature. One problem is that it will take me MUCH longer to reach 3750 miles than 3 months (I expect to reach that many miles in 8-10 months since this is my 2nd car that I do not use for daily commute to/from work).

Also, this is honored across nation at all Nissan dealerships with the exception of Alaska.

They do have three different "levels" of service though - Gold, Silver, Bronze (http://www.nissanusa.com/content/dam/nissan/pdf/extended-service-plan/Maintenan- cePlus.pdf). The price above is for the Gold level. I need to call and inquire about the pricing of other 2.. Since all Nissan dealerships honor this, I think it might be useful if I keep the car for 5 years (which I think I will).. Initially I was concerned primarily because I thought it was tied to the dealership, and I was not sure if I will stay close to the dealership for the next 5 years.

texases

Wow, Nissan is far more aggressive with their oil change requirements, that 3 months is just nuts. While I'd be sure you could go 6 months no problem, it is a warranty issue, so I guess you'll have to follow it.

Nissan seems to have institutionalized high service revenue...most others do it with a dealer 'service recommendations' list that exceeds the owners manual requirements.

walletless

They do have separate maintenance+ plan for the 7500mile interval too, but I have not checked on price for that.

One question - are these generally negotiable? If so, I can do some math and try and see if they are willing to add it below a certain price point..

jipster

In 5 years will you drive 75,000 miles in 5 years? You gonna buy your next set of tires at expensive dealership? Many of the dealership recommended services i.e cleaning of fuel system, early trans fluid and coolant flushes...arent listed in manual.

Have you checked around other Nissan dealerships? I can routinely get my oil changed for $19.99 at my Mazda dealership.

I think you'd probably end up spending more going with the Nissan "minus" plan.

walletless

Hi Jipster,

I *definitely* will not drive 75k miles in 5 years. My average is likely going to be closer to 5k per year..

BUT, the manual recommends oil change every 3750 (or 7500) miles / 3 months (or 6 months) - whichever comes earlier.. so regardless of how many miles I drive, it seems that the manual recommends an oil change every 3 months.

I will call and check for oil change specials at other dealerships around to see how much they charge. I doubt there is a $20 special anywhere nearby unless I manage to haggle my way to that price..

walletless

I pinged 3 dealerships nearby. Cheapest oil change is $24.95. 30/60 service is in line with retail price. Intermediate service just covers some inspection, which could be done at any other dealer as long as there is an itemized receipt as proof that the inspection was done. Tire rotation can also be done anywhere, and typically costs $10 at a nearby tire place.

So yes, the M+ plan does not seem worth it anymore.

jipster

O.k, with fewer miles, you'll need fewer tire rotations. A lot of the inspection stuff they do will be done during oil changes. If they have an oil chane only package, may be worth a look

You have a CVT transmission? No transmission fluid flushes. How you like that CVT transmission by the way?

Really like the looks of the Altima.
Would like to buy one myself. Congragts.

walletless

Thanks jipster.
I called 3 Nissan dealerships nearby and offered that I would like to buy the M+ package for half the advertised price (i.e. $950) - 1 of the dealer refused immediately, and 2 told me they will get back to me.. let's see - if they agree I might get it (worth it just for the 30/60k warranty and oil changes alone), otherwise I will not buy it. I explained to them that I am a low miles driver, and will not get the full benefit of the M+ package if I bought it as-is, and am better off paying for the services individually if that was the case.

CVT is good so far. The only time I realize the difference is when I am merging into a freeway - you see the RPM shoot up for few seconds as you are accelerating, before it stabilizes. The unfortunate downside of CVT seems to be that the gas average is lower than non-CVT, but I am OK with that given that the difference is only a couple miles per gallon.

I have not yet driven the car on steep slopes - where apparently CVT helps the most be shifting into the right gear to minimize braking... so I cannot talk about that yet.

Overall, I think I made the right choice in Altima - it was the best tradeoff between cost and reliability. The Sonata appealed me, but the ride was not as smooth, and the interior did not feel as roomy (although they apparently have more cubic feet inside than Altima). The only question with the Altima is reliability - will the car run for 200k miles without needing major repairs - something my 97 Toyota Corolla does very well (I am at 125k miles on my Corolla and its still running like a champ).

jipster

Good move in trying for a lower price. Dealerships have HUGE profit margins for most maintence items. Yeah, they'll get you in for that $20 oil change (anything under $30 is pretty good), but the fuel system cleaning for $140... just a $20 bottle of Seafoam. More than likely the two that call back will try to bump you up in price, hold firm and just give them what you think it's worth.

My next car will probably be a Altima, Sonota or Fusion. Altima cost a little more, but most auto magazines have them at the top for performance and reliability.

walletless

Has anyone used http://www.nissanextendedwarranty.com/warranty/nissan_maintenance_plus.html site before? They claim to sell factory package for the Maintenance+Plus, and have quoted a significantly cheaper price than the dealerships...

But since they are a 3rd party (not sold by Nissan itself).. I wanted to solicit opinions from anyone here who have purchased from them..

jipster

I'd be careful if not backed by Nissan. If their company goes belly up, you're screwed.

walletless

Yes, I verified that this is Nissan-backed warranty, although it's sold by a 3rd party. I will call Nissan as well once to verify with them if they are legit.

One caveat I noticed is, that the oil changes are by months (i.e., I *have* to change oil every 3 months even if I have driven way less than 3750 miles), but the servicing and tire rotations are not. In other words, the M+ is sold with a 4 years/60k cap.. but if I do not reach 60k miles within 4 years, that service is not needed, and the money I paid for goes wait.

The more I think about this, the less sense it makes in buying one of these (unless there was a plan that just covered oil & filter changes.. but there isn't one).

Kirstie_H

I seriously doubt you'll come out ahead on that purchase. You might break even, but what's the point of that?

walletless

The reason I was looking for a good deal is so I do not have to constantly keep haggling the price when I go in for routine maintenance.

If I am barely breaking even though, it is not worth it, because more than likely, I will miss out a few services because I have not driven the car enough miles before the contract expires (i.e., if I buy to 4 years/60k miles package, and at the end of 4 years, I have only driven 50k miles, I cannot do the 60k, and the price for that service which was built-in to the package price is lost).

Kirstie_H

Totally understand the purpose of looking at the contract, but unless you know you'll be meticulous about service and, as you mentioned, will use all of the miles, you're probably better off just purchasing services individually as needed.

Also, if (god forbid) your car was to be totalled, or you had to move somewhere where a Nissan dealership was very inconvenient, you'd be out of luck. Unlikely, I know. I mean, if you'd rather just pay up front and have the whole thing out of the way, the maintenance package does accomplish that. Just want you to make your choice with all factors considered.

walletless

Thanks kirstie. Yes, I agree with you. At this point, after considering my low-mileage scenario, the M+ package does not seem like a good solution.

Btw, the package apparently can be cancelled at any time and you can request a pro-rated refund. I have not inquired how they calculate the pro-rated refund though (example, if they calculate based on price of retail service provided and deduct that price for things you have performed, it would be really bad).. but I know 100% that I won't drive anywhere close to the 15k miles per year average that U.S. car owners supposedly run.

tami10

You were smart at canceling that..I bought one and have fought for them to pay for repairs...Currently my vehicle has been in the shop for 2 months because of this company..THEY ARE HORRIBLE AND VERY IGNORANT...i PAY 130 A MONTH FOR IT AND AM STILL FIGHTING TO GET THEM TO PAY OR GET ME A RENTAL...I HAVE A 4 STAR CONTRACT...ANOTHER THING IS MOST GARAGES WON'T EVEN TAKE THE INSURANCE BECAUSE THEY HAVE TO FIGHT TO GET THEM TO PAY....THEY SUCK!!!!

jeffg8

Just bought a 2012 Hyundai Accent-we paid cash for the car so the write up was fairly quick. Hyundai is bumper to bumper 5/60 so I was curious what they would offer. They offered a 3rd party Zurich contract I think around $1400 to cover the 5/60 to the 10/100 like the rest of the car. Since its not a mfg contract I was less than interested. From knowledge here and elsewhere I pointed out I was sure we could add that later-she said we had until 10,000 miles Considering the car is covered for 5 years I don't think I am too worried about it. We had Honda Care on a 2000 Model Accord when we bought it new and it seemed ok, but it was only around $600 in 2000.

gapvendor

I am a rep for an automobile extended service company. Okay, after you call me a crook please relax and consider a few facts about my company and service agreements in general. First of all my company has been in business for twenty-six years, is licensed in every state and is approved by all of the manufacturer affiliated finance companies such as Ford Motor Credit and most lenders. We are fully insured by a contractual liability policy underwritten by American Bankers Insurance, a division of Assurant. Most of the twenty or so companies that have gone out of business since 2004 were either "bonded", self-insured or a member of a risk retention group (RRG). We do not offer our products online, in the mail or on television. We pay claims same day to the repair facility via electronic transfer with no deductible or labor rate cap. A real live human answers the phone at our home office in Arkansas.
Most extended service contracts are either named component or exclusionary. If a component such as a power steering pump or an AC compressor is not specifically named in a named component agreement, IT IS NOT COVERED. Period. If a specific component such as navigation equipment or air bag system is NOT LISTED it IS covered by an exclusionary or "factory type" agreement. Our contracts are first day coverage while many exclude the first thirty days. Many low cost drivetrain or powertain only plans have a liability cap. This means that there is a maximum that will be paid ($1,000, $1,500, etc.) regardless of the repair cost. This is usually the type coverage that dealers advertise offer as a "free" or "lifetime" warranty
I've seen several complaints about coverage being denied because routine maintenance, usually oil changes, was not performed or recorded. This is not unique to the extended warranty but applies to every FACTORY new car warranty as well.
Ask your salesperson or finance manager for a copy of the warranty, not the brochure, and check for what I mentioned above. Do not accept statements such as "it's not mentioned in there but we always cover that" or "I'll have that added to the agreement".
Lastly go to www.ripoffreport.com and www.pissedconsumer.com. Many companies have been bashed on this site but I have yet to see a complaint about ASC warranty company.

aeropower

So I'm leaning toward buying a new 2011 Saab 9-5 and since there is no warranty on new saabs because of Saab's bankruptcy I'm considering a 3rd party. The dealership recommended Zurich. I currently have a Saab and only had two warranty claims in the 4 years that I've had the car. The dealership actually allowed me to claim an ignition and brakes on the warranty too so I really don't consider those claims. I had spilled my coffee on the console and a few drops got in the ignition which they replaced for me under warranty. I bought it when it was 2 years old and had 31k miles. It's now 6 years old and has 98k. Given all this I'm not even sure if I should shell out the money for the warranty. Any suggestions/thoughts?

qbrozen

Sorry I don't have an answer ... but out of curiosity, how deep are they discounting the new car?

Aside from the warranty issue, where would you even go to get the work done?

texases

I'll just try this one time: DON'T buy it! There is nothing left of the company, you will take a bath in depreciation, There are MANY GOOD CARS equal to the 9-5.

Done.

clickrs2

Thanks for sharing this info with us, I looked into ASC and I am impressed. Especially since buying a used car, it has low mileage for a 2009, but since it is for my daughter who just started working, worried about repair bills for her. This helps alot. I do appreciate it.

bnivrm

I purchased a new vehicle recently. After talking to the finance guy about extended warranties, I was told in Florida, they are not able to adjust or negotiate the extended warranty price. When I asked him for the specific law, he could not tell me.

Is this true? I can not find any information regarding this anywhere. Other than one person trying to find out the same thing after a purchase in 2009.

texases

I don't know about Florida in particular, but I know I would never, ever, buy an extended warranty at closing, that is the MOST expensive place to buy it. He will say ANYTHING to get you to buy. Just say no, you don't have to buy it then, anyway.

robr2

Yes it's true.

Florida considers Extended Warranties a form of insurance. It's pricing is regulated by the insurance commission and cannot be discounted. Further, many manufacturers will not allow dealers outside the state to sell warranties to Florida residents again due to the insurance commission regulations.

rayainsw

As stated, my understanding is [ and I am neither a lawyer nor a resident of Florida ] that Florida motor vehicle extended warranties are legally covered as \ treated as insurance.

They may be the only state that does so.

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0600-- - 0699/0634/0634.html

634.1815 and 634.282 appear to include specific reference to uniform pricing. Most specifically, I suspect:

'(6)  UNFAIR DISCRIMINATION.&#151;Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class and essentially the same hazard, in the amount of premium, policy fees, or rates charged for any motor vehicle service agreement, in any of the terms or conditions of such agreement, or in any other manner whatsoever.'

Good luck!
- Ray
Georgia resident . . .