Auto Warranty Broker

hightorqhightorq Member Posts: 7
edited September 2014 in GMC
Does anyone have any experience with these guys? I am searching for a replacement for my two worthless Warrangy Gold policies. Did a lot of research but want to hear others' experiences. I have to buy something, got two high end cars off warranty. Any other extended warranty companies you recommend? Thanks
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Comments

  • driftracerdriftracer Member Posts: 2,448
  • highrollahighrolla Member Posts: 9
    Look around and research the companies...I did and am very happy...
  • hightorqhightorq Member Posts: 7
    highrolla, are you happy because you chose Auto Warranty Broker, a different provider, no extended warranty, or what? I am trying to make a decision and if you have found someone who does the ext warranty thing right, let me know. Thanx
  • hightorqhightorq Member Posts: 7
    Driftracer, did you have bad experience with Auto Warranty Broker, do research on them, or what? specifics, if you can. Thanx
  • CarMan@Edmunds[email protected] Member Posts: 38,514
    Hi everyone. I just wanted to throw my two cents into the conversation. I personally would never ever purchase an extended warranty from an independent provider. If you feel as though you need an extended warranty for the peace of mind that one would provide why wouldn't you want to purchase an official manufacturer-backed policy that you know will be around in a few years, won't try to get cheap on you and deny claims, and one that you know that your dealer's service department will accept? Remember, it is in manufacturers' best interest to keep you as a happy and loyal customer. They are much more likely to stand behind their own products in hopes that you purchase from them again than some random third party. Plus, automakers (other than Daewoo which is the rare exception) don't just go bankrupt and disappear like some independent warranty providers have. I have seen countless horror stories from consumers who have had problems with independent warranty providers. Manufacturer-backed extended warranties do generally cost a little more than third party warranties, but they definitely are worth the extra money. Keep in mind that in most states, the prices of extended warranties are negotiable. Shop around, either by telephone, e-mail, or in person with several dealers and purchase an official policy from the one that offers the lowest price.

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  • driftracerdriftracer Member Posts: 2,448
    but I'll add that after working as a service advisor and service manager, I've seen many of the nightmares that consumers go through with private warranty companies. This really gets wild if you try to pursue a lemon law or breach of warranty case because these policies aren't "warranties" - you're stuck with a problem car and no one to whine to.

    I've dealt with probably 25 private warranty companies, including Auto Warranty Broker (primarily the companies they refer you to), Warranty Gold, National, Fireman's Fund, and others.

    They're all pretty much the same, mneaning none have your best interest at heart. There's 5-6 main reasons why I would shoot a personal friend relative who bought an aftermarket warranty - I'll go into detail if you wish.
  • mitzijmitzij Member Posts: 613
  • hightorqhightorq Member Posts: 7
    OK, I agree with you guys on ext warranties --when I bot my GMC Yukon XL I bought a GMC Protection Plan, 100k miles/7 yrs: expensive but worth it. No sweat, no worries, GM is not going out of business (if they do, we got bigger problems than repairs!). Even covers abuse! However, after you buy the car, you cannot buy the manufacturers extended warranty, no matter how well you take care of the vehicle, even if U have it serviced at the dealer. I have two vehicles off warranty, need ext coverage; the dealerships won't even talk about selling an ext. warranty from the manufacturer. (Mercedes and Saab)

    So again, I am searching for feedback, positive or negative from people who have actually used Auto Warranty Broker or any other company.

    No one is coming out and saying '..Wow, I used XYZ Extended Warranty Company and they were great!' Tells you something, doesn't it? I had 5 years of excellent experience with Warranty Gold, but then the brown stuff hit the fan.

     I still need an ext warranty. Anyone have a good experience or a warranty company to recommend? Thanx
  • highrollahighrolla Member Posts: 9
    Consumers have been getting 'Robbed' by dealers for years....and yes I have been wronged by GOld but am happy now. Sorry don't know much about Auto Warranty Broker but see my post on the compnay I chose. WarrantyWarehouse.com was the ONLY compnay I spoke with who understood where I was coming from and what I needed. Make sure you do your own research and follow your gut, I did, and am happy even though I was BURNED hard in the past.

    Dealers have been gauging us for years, if all extended warranty compnaies were BAD, they would not be liscensed to do business. Remeber for every 1 upst customer there are thousand of satified ones, but they aren't as angry as the ones that are upset.

    Do your research, find the plan that fits your needs, research the compnay, and follow your gut. THis way the decision was yours and it is not something thatyou should rely on someone else.

    Make sure you check their customer service department, I know the one I chose has 24/7 live support..to me thats a huge plus?

    Good Luck!!
  • highrollahighrolla Member Posts: 9
    I was curious about Auto Warranty Broker and saw they have been in business since 2001....may want to look elsewhere....
  • driftracerdriftracer Member Posts: 2,448
    you sure do use words like "robbed" and "gouged" a lot when talking about dealers. Have you ever heard of the word/phrase "negotiate" or "smart consumer"?

    If you look at a factory extended warranty, you DON'T have to pay the first price you're told by the F&I guy - negotiate, just like with the car.

    Having been a successful F&I guy, I know that most dealers like to use a retail figure that is double the cost of the warranty. Negotiate, and quit whining about getting "robbed".

    Have the F&I guy pull out his cost book/chart and offer a fair amount over his cost.

    I have no sympathy for someone who won't do a little research, but wants to blame someone else for their foolish consumer decisions.
  • mitzijmitzij Member Posts: 613
    Well, Warranty Gold was in business for something like 20 years and they went under. Maybe autowarrantybroker still has money in the bank to pay claims!?
    I still think it's better in the long run to self-insure. Save money for a rainy day, even with an expensive car. If you can't afford to fix one, maybe you shouldn't buy one.
  • jratcliffejratcliffe Member Posts: 233
    Just to be clear, you CAN buy an extended warranty from the manufacturer after you buy the car, just not (in most cases) after the original warranty expires. In the case of my Honda, I could have bought a HondaCare warranty up until the 3/36 warranty expired.
  • highrollahighrolla Member Posts: 9
    I feel this is a Dealer site, no one caring about the consumer. For the record, I am an accountant who has great strength in 'negotiating'. Still, Dealer have been 'ROBBING" consumers for years and have an alternative is always a good thing. Do back to work selling your cars, it is obvious you guys are dealers.
  • driftracerdriftracer Member Posts: 2,448
    I'll post this again for you -

    "after working as a service advisor and service manager, I've seen many of the nightmares that consumers go through with private warranty companies. This really gets wild if you try to pursue a lemon law or breach of warranty case because these policies aren't "warranties" - you're stuck with a problem car and no one to whine to.

    I've dealt with probably 25 private warranty companies, including Auto Warranty Broker (primarily the companies they refer you to), Warranty Gold, National, Fireman's Fund, and others.

    They're all pretty much the same, mneaning none have your best interest at heart. There's 5-6 main reasons why I would shoot a personal friend relative who bought an aftermarket warranty - I'll go into detail if you wish."

    I'm a consumer fraud investigator, dealing specifically in dealer fraud, lemon law, and breach of warranty cases - I work strictly on the side of consumers. I also consult for a dealer group, helping them do the right thing and increase their CSI and sales abilities by losing all the old school car dealer games.

    Lose the dealer-bashing notions and realize that I'm giving advice to consumers from years of experience.

    I'm glad you're happy with your choice - I've seen literally hundereds, perhaps thousands, of consumers who hated their aftermarket warranty experiences.

    If you need real-world reasons, I'll be glad to give them to you.
  • chrisgivenschrisgivens Member Posts: 14
    Dealers are just trying to make money, just like you. Do you work for free? I need to hire you.
  • driftracerdriftracer Member Posts: 2,448
    you'd think he'd be able to "do the math" as the popular phrase suggests.

    There's way too much proof out there that consumers lose out and take many more chances with aftermarket warranties.

    I would want my accountant to be a better consumer before I allowed him to "do the math" with MY money...
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,338
    How have we been ROBBING customers?

    By offering factory backed warranties that do what they say they will?

    I hope your Johnny Come Lately warranty company stays in business this time!
  • brucembrucem Member Posts: 2
    They paid out about $2K in claims, and then when I sold the car I even got a partial refund!

    Since I bought my warranty from them, about a year ago, their prices have gone up a bit. I'd say their claims administrator was tough, but fair. No leeway or being "nice guys" and covering things that were not listed or related to the main problem, but they did cover what they were contractually obligated to cover.

    Bruce
  • sirbtsirbt Member Posts: 1
    I came here looking for advise on my GMC and somehow feel into this discussion. I can tell you staright up that I love my extended warranty. I bought it late last year from a broker called Auto warranty Associates, in Arixzona. I'll put the web address in later, but anyway I was originally going to buy from my dealer. I bought the Denali used with 30K and they were going to hit me for a little over 3000.00 just to get me to 75K. Finance another 3k in the deal for 6 years and pay interest too, no way. Anyway to make a long story short I went online and talked to at least a dozen brokers or companies. I got prices from 1000.00 uop to 2000.00 for all kinds of warranties. Anyway these guys told me not to be in a hurry that I had 5k left on my warranty take my time and shop. So I did, I read through all the quotes I got and every time I called them they had an answer. It was the most low pressure sale I've ever been in. The warranty company I bought was Ultimate Warranty out of Pa. I have filed one small claim on the cooling system and it was covered. Here is the address for their web site http://www.autowarrantyassociates.com
    SirBT
  • audia8qaudia8q Member Posts: 3,138
    Tell us if you feel the same way after you make some claims.
  • maxx4memaxx4me Member Posts: 1,340
    it is amazing that GM is too stupid to offer their extended warranties at a reasonable price, that they lose business from people like yourself. Sadly, few people know that they can negotiate the price on GMPP, and can also buy one at a great rate from two different internet outfits (one in PA, one in IA). I think it is time that people start bundling their negotiations on their prospective GM purchases, coupling the warranty with the purchase of the car. By doing so, these dealers would not just lose the warranty business (which most of the dealers don't care about since they think you'll be coming back to them for future service with cash in hand), but lose the car sale as well. I wish you well with your warranty SirBT. I think we would all be better simply puting our money under our pillows for when we have a mechanical breakdown; and then when the car breaks down, taking it to an independent repair firm.
  • manamalmanamal Member Posts: 426
    GM, Toyota, Chrylser, Ford, etc.... warrentees are more expensive -- not because of the the markup -- but because they stand behind thier products. Other companies do not give a darn if you are happy with the car. However, the manufacturers will pay off much easier than other companies.

    All extended warentees/Service plans have 50% markups. And remember, if the deal is too good to be true, it probably is.
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,338
    Just hope they are still in business when you need them. so many of these warranty companies have come and gone it's impossible to keep track.

    When something is cheap, there is usually a reason.
  • driftracerdriftracer Member Posts: 2,448
    out is that dealerships don't always like to sell warranties to folks off the street, because by the dealer agreement with GM, Ford, Honda, whoever, the dealer "certifies" the vehicle not to have any current problems, no accident damage, perfect title status, etc. It only takes having the manufacturer slam you once before making a couple hundred bucks on a warranty isn't worth it anymore.

    Been there, dont that, got the t-shirt.
  • maxx4memaxx4me Member Posts: 1,340
    no one is denying your points, especially that manufacturer's warranties are the only way to go (other than keeping the money in a short term money market account. My point of view is this:

    1. I bought a Ryan Warranty for my 626 in '96 for $650. I put $3,500 in repairs on that warranty. Ryan paid out each time without any problem. Obviously Ryan lost on my deal. Is that why it costs $2,000 for a warranty 8 years later???
    2. Why offer an extended warranty at all if you don't want your GM salespeople to sell them?? I had to initiate the conversation with my GM finance officer. Seems to me that he would have at least broached the subject since that is his job (I guess he didn't want to earn his t-shirt). He didn't care to give me anything more than the retail price. I don't do retail
    3. Of my 30 e-mails to GM dealerships asking for their best price on a warranty for a Cat II vehicle, why did 3/4th of them ignore my e-mail??
    Why did half of the ones who responded quote me the retail book price?

    I love retail in the US. Business people do some pretty stupid things, which explains why over 50% of start-up businesses go OUT of business. Bottom line, if they don't want to sell them, then stop selling them. If you want to sell them, then give us educated people our due......don't give us a bogus "take it or leave it" price. And for the less than educated, why not give them a "price they cannot refuse" to get them to shell out more $$, instead of quoting them extremely high prices for a warranty??? Sorry, seems like dumb business practice to me!
  • driftracerdriftracer Member Posts: 2,448
    "I had to initiate the conversation with my GM finance officer"

    If any of the GMs I've worked for were ever told that by a customer, they'd help the F&I Manager clear his/her belongings out of the office...
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,338
    You are correct. Some business people do some very stupid things.

    Discounting their product is one of those stupid things that cause business failures.

    Some people will automatically ask for discounts on everything even though the price offered may represent a good value.
  • nancywnancyw Member Posts: 11
    Sounds like you work for Auto warranty associates. They have been in business for a few months and have little or no experience. I called Ultimate and they have never heard of them.

     

    The 2 guys who own Auto warranty associates worked somewhere else before they started on 8/17/04. If you bought an Ultimate warranty from them, it is illegal and a stolen contract. Better call and check to see if you have coverage.

     

    Ultimate does not sell its product direct to the public only through dealerships or private label programs. Try www.extendedautowarrantybrokers.com for a true broker and real experience.
  • audia8qaudia8q Member Posts: 3,138
    Can you tell us why so many aftermarket warranty companies (the majority) have failed and left consumers high and dry??

     

    Seems to me the odds are working against the aftermarket companies success since the success is based on not paying claims. The manufacturers have a big incentive to keep the consumers happy.. they want to sell you another car? What incentive does the aftermarket warranty company have??? They never seem to be around long enough to gain any loyal customers.
  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,338
    Most have gone out of business, just like car brokers. Why would anyone take a chance with a Johnny Come Lately warranty company anyway?
  • mani3mani3 Member Posts: 1
    The Majority of dealers out there tend to be dishonest. There are Co/companies out there that are helpful and honest. About a year ago I bought a contract from Auto Warranty Broker and I have had to make several large claims since then. They have been nothing but helpful, and efficent. When I first bought the warranty the representitives cautioned me and encouraged me to compare them with other companies. They answered all of my questions and until now they their answers were correct. I am sure that they make money however, some people must still enjoy selling products that they can stand behind not HIDE behind.
  • Kirstie_HKirstie_H EdmundsAdministrator Posts: 11,126
    A reporter with a national magazine would like to speak with anyone who has used a car broker to buy a car. The article is about the pros and cons of using car brokers. If you fit what the reporter is looking for, please email Kirsten Holguin at [email protected] by Thursday, March 17.

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  • erika3erika3 Member Posts: 2
    I don't like the Cadillace dealerships. I feel like they all are a bunch of scammers. I want the new Cadillac Escalade but I feel like every dealer is very greedy. Instead of them making money they want to make me broke. I have waited for 2 years to buy a new car. If I can't find a good deal on the Cadillac Escalade I wont get a new car at all.
  • drtbgteddrtbgted Member Posts: 8
  • drtbgteddrtbgted Member Posts: 8
    Try these guys, they sent me the contract before I bought and were upfront. http://www.warranties4wheels.com<a href="
  • mkvincmkvinc Member Posts: 2
    I live in a rural area of Alaska. I have been looking at used cars through some dealerships. It seems that there's no 30-day to 90-day warranty on used cars when the manufacturer's warranty has run out. (One of the Edmunds.com blogs advised not to buy a used car that doesn't include some basic warranty.)

    Can anyone advise me on this? I feel uneasy buying a used car with no warranty.
  • audia8qaudia8q Member Posts: 3,138
    I would be suspect at best.....Lets revisit this in a year or so and we will see if they went the way of most aftermarket warranty companies.
  • drtbgteddrtbgted Member Posts: 8
    http://www.warranties4wheels.com did the job and are still standing!! Any more questions?
  • audia8qaudia8q Member Posts: 3,138
    It's only a matter of time....the screwing rate from aftermarket warranty companies is so high that I would bet the ranch on the fact that over time they will burn alot of people....they all do.
  • justme8justme8 Member Posts: 1
    I was reading and I cant help but notice if you get a warranty thru a dealer you pay the markup they added.
    They carry those warranties as if they were the factory,
    but they are not! Everyone gets a cut. The Dealer that
    forces you to use only his Warranty is not on the up and
    up. I have an Extended Warranty with Auto Repair Warranty,
    they cut out the middle people, they pay cash and saved me
    thousands not only on the warranty itself but the dealer
    estimates for repair, which were inflated and wanted to
    repair things that did not need it. :)
  • bakwas0bakwas0 Member Posts: 3
    Folks,

    I have a 2003 VW Jetta with 35000 miles. The original factory warranty is due to expire in a week.

    The 2003 Jetta has documented Engine problems specifically the Mass Air Flow Sensor and the Water pump. To protect myself from other engine problems, I am researching extended warranties.

    I have researched several forums on extended warranty, read about WarrantyDirect, The Auto Club, Mercury Insurance Group, VolksWagen RealDriver extended warranty (administered by Fidelity Warranty Services) etc. My observation is:

    1. Warranties backed by Good AMBest A rated Insurance companies donot cover Wear & Tear. They cover only Mechnical Breakdown defined as "failure due to faulty workmanship or materials"
    2. Warranties that cover Wear & Tear are all backed by RRGs.

    I would like to ask if:
    1. Anyone has used Volkswagen/Audi Warranty (administered by Fidelity Warranty Services) and do they honor the claims (especially on vehicles older than 5yrs/50k miles)

    2. Has anyone used aftermartket warranty like WarrantyDirect, Warranty America etc for expensive repairs (repairs costing more than the premium) with good satisfaction ?

    3. Does suggest any reliable auto warranty broker ?

    Regards,
    Bak
  • warranty101warranty101 Member Posts: 6
    As for your Jetta, there are a number of very good companies that can offer a warranty, they know the same things you do about common issues so don't be surprised at the price.

    Reading the other stuff, it seems that a lot of people are lost in the warranty world and how it really works. I was a service manager for 10 years, a claims manager for 3 years and a sales rep for over 2. I can attest that there are some horror stories from aftermarket companies, but frankly, most dealer sold "Factory backed" policies are administered by the same companies that sell to the public. I can remember just as many issues with "factory" or dealer sold warranties as non dealer sold ones.

    Here is the skinny. The broker is not the one that has to do anything after the sale. Once sold they forward the money to the administrator and their responsibility is done. Brokers can get great deals on great coverage, but you as a consumer have to do some research yourself. ALWAYS get the actual contract up front, something most dealers cannot offer. NEVER give them ANY money until you have the contract and read it completely. Check the BBB and Webassured for both the broker and the warranty company.

    RRG's are not as bad as people think. Exxon and GM both have RRG insurance companies. A RRG is an insurance company with only 1 client. In the case of warranty companies, make sure that the RRG is not owned by the warranty company, as in the case of First Assured/OneSource that went under in 2005.

    Do not buy on price. Having said that, if the contracts are identical then don't over pay either.

    the bottom line, get the contracts form anyone you are looking at first. Anyone that wont give it to you, lose their number, it's like grocery shopping blindfolded. If you feel pressured to give them money, lose their number. You need to be comfortable in the process. The warranty is there to fill your need and it is your money.
  • joel0622joel0622 Member Posts: 3,299
    I was a service manager for 10 years, a claims manager for 3 years and a sales rep for over 2.

    Are you still associated with the Auto Biz?
  • audia8qaudia8q Member Posts: 3,138
    but frankly, most dealer sold "Factory backed" policies are administered by the same companies that sell to the public. I can remember just as many issues with "factory" or dealer sold warranties as non dealer sold ones.

    What factory esp's are backed by non-mfg based companies?
  • mitzijmitzij Member Posts: 613
    I can remember just as many issues with "factory" or dealer sold warranties as non dealer sold ones.

    Not all dealer-sold service contracts are Mfr-backed.
    Have you had problems with Mfr-backed contracts? I've found GMPP claims to be as straightforward as Warranty claims.
  • warranty101warranty101 Member Posts: 6
    Yes, I am still int he automotive business, I do some consulting with local repair shops as well as local customers that are looking at used cars and wararnties.
  • warranty101warranty101 Member Posts: 6
    Well lets see. Honda/Acura uses APCO as does Ford (ford owns APCO but are trying to sell it), GM uses AON (formerly Ryan), Audi and VW use JM&A, Some Toyota/Lexus go through Fidelity as does BMW. The recent sale of Chrysler leaves that in the air to some degree. Mercedes used Starmark, however I am not sure if it is a seperate company they own or a division within Mercedes Benz. Volvo VIP is through a company in Nebraska. All of these third party administrators have wararnty programs offered to the public by many brokers and are sold in these dealerships as "Factory" warranties, but they have the same inspection criteria, wear and tear exclusions, and fine print as the warranties sold over the internet.
  • warranty101warranty101 Member Posts: 6
    GMPP (AON/RYAN) is not bad, they usually do not give their dealers a hard time, but they are a third party administrator and are not owned by GM. They are sub-contracted to administrate their warranties.
  • joel0622joel0622 Member Posts: 3,299
    All of these third party administrators have warranty programs offered to the public by many brokers and are sold in these dealerships as "Factory" warranties, but they have the same inspection criteria, wear and tear exclusions, and fine print as the warranties sold over the internet.

    To a certain extent what you say is accurate. The differences being that depending on your service absorption a dealer is given a limit where they do not need prior approval on claims. Also the approval through the factory is automated and does not require a rep from the service company to come buy.

    Plus the fact that they are not a third party to the dealer or manufacture. In my case Ford Motor Company could care less if some fly by night warranty company is giving you the run around. They will tell you this is why the Manufacture offers a Service Contract. Where if you are getting the run around on a Manufactures plan they are obligated to assist you.
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