Extended Warranties

driftracer · December 2003

my suggestion - go with a VW plan or put your money in the bank.

deeleeh · December 2003

Just wanted to say that I would be checking on the warranty provided by Equis before I would take that one. SC&E Administrative Services, the company that marketed the Smart Choice program through National Warranty also has a program called Equis.

pasquali · December 2003

I've got a 2001 TL with almost 40K miles. I love this car and would like to keep it -- but I want to be covered under a warranty beyond the existing 4 year/50k warranty that will expire in the not-too-distant future (of course, based on time, not miles). Have any of you purchased extended warranties for your TLs that you would recommend? I know that Acura offers some, but there are also many others out there. I would like a pretty comprehensive warranty for my peace-of-mind.

By the way, I checked with Acura and I understand that my transmission already has an additional 3 years of coverage -- as do all 2000 to 2003 TLs due to the common problems with transmissions on these models. So basically, I'm looking for a good extended warranty that would cover any other major mechanical problems for the next two or three years. Thanks for your help.

thebigshow · December 2003

I am trying to find the dealer (invoice) cost for a Ford ESP PremiumCare Extended Warranty on a 2003 Ford Expedition that is 14 months old with 15,000 miles. Do you know where I can find this information? Please let me know. Thank you in advance for your help.

driftracer · December 2003

thebigshow · December 2003

I want to offer a dealer $100.00 over their cost. I do not have a lot of faith in the dealer giving me their "real" cost, so I am hoping to get this information before making teh offer. Isn't their a source for this information like there is for new car invoice prices?

driftracer · December 2003

varies by region - just ask to see the F&I guy's warranty book, listing the costs - I've pulled that book out when I get a grinder customer.

mitzij · December 2003

Your best bet would be to put aside a little money every paycheck in an auto repair fund. In essence, warranteeing yourself. But if you must purchase a service contract, go with one your automaker backs. In my case, that would be a General Motors Protection Plan. If the contract does not say Acura, it's not an Acura plan. Plans are pricey, be sure to shop around and negotiate for the best price.

emarks1 · January 2004

I just purchased an extended warranty from American Auto Warranty (www.aawarranty.com)

The person I dealt with, Mark was excellent to deal with. He answered my questions, was not high pressure, and actually told me to go with a lower cost option than I was originally looking for. I ended up getting an extended warranty for my 2000 Subary Legacy for another 5 years and 60,00 miles. If I don't use the warranty, I get 100% of my money back. The product they sold me is called Service Shield from Lyndon Property Insurance Company.
http://aawarranty.com/serviceshield.htm#manplus

If I have a claim, I will report here. I am also awaiting a price for my 2004 Camry... They told me they had some new A+ rated insurance products coming after the first of the year.

driftracer · January 2004

an insurance policy (that's not a warranty) when you can get a real warranty?

emarks1 · January 2004

I didn't think I could get a "real" warranty for my 2000 subaru.

driftracer · January 2004

after years of experience in sales and service, I try to steer folks away from aftermarket "warranties".

mitzij · January 2004

Sounds like a 'too good to be true' deal. Make sure you have that 100% refund in writing, on the contract they send. The contract your link takes me to does not mention that bonus. Also be sure your favorite mechanic will deal with AA, and that AA pays for OEM parts.Buying a service contract is the easy part, using it is a whole 'nother can of worms. Also, don't put a spoiler, bigger tires, fancy wheels, running boards, or any other modifications on your vehicle, that voids the contract.

jaa37 · January 2004

I just bought a 2004 Civic EX. Given Honda's reliability, should I even bother shopping for an ext. warranty, or just save my money?

jratcliffe · January 2004

My advice would be:

a) if you do buy a warranty, only buy a HondaCare (i.e. manufacturer-backed warranty)
b) if you buy a HondaCare, remember you can buy it from ANY Honda dealer, and the price is definitely negotiable. Do a bit of net searching (there's a website dedicated to Odyssey owners where a couple of dealerships that sell the warranties for ~$100 over cost post - can't give you the link here, but a few minutes with Google should get you where you need to go).
c) don't do anything now - you have until your 3/36 warranty ends to buy a Honda extended warranty, so you might as well wait, see how you like the car, if you have any problems, etc., before deciding to buy.

ateixeira · January 2004

Keep something in mind - their reliability lowers the price of that warranty.

Honda does not offer roadside assistance for free, but if you buy a warranty you get it. If you get a 7 year warranty that could save you $497 in AAA or other club fees.

Could help resale, if you sell just before it expires the buyer gets peice of mind.

Get quotes and shop around, it could still be worth while.

-juice

mitzij · January 2004

AAA offers more than roadside service. My sister uses hers more for travel books, brochures, and trip tix than anything else. That's not comparing apples and oranges. More like comparing a fruit salad and a piece of fruit.
Saving $497 by spending $1200 (for 'the best' service contract, the closest thing to bumper to bumper possible) is just not good handling of funds.

ateixeira · January 2004

But I like plain fruit. :-)

We used trip tix once. In 7 years. I do fine with Mapquest now, in some ways it's better, easier to read at a glance when the co-pilot is asleep.

YMMV, but we're quite happy.

-juice

menauidiver · January 2004

I thought I would save money and lost big time with Warranty Gold who filed chapter 11 and took all my money- and I never filed a claim. The law allows them to still sell policies.

Please if you must have a policy get it from your dealer. However, I think self insuring would be better. Put away a litttle each month for repairs, say $50 - $100. Then if you get rid of the car and you didn't use the money take a vacation. Whatever you do don't go to a third party like Warranty Gold and buy a policy. If you have second thoughts go to warrantynews.com and look around. You will see these guys are not nice. That is WG site on their chapter 11.

zimirza · January 2004

I have purchased a 2000 CL500 with 15000 miles, still under factory warranty. I can buy extended warranty for upto 100K miles and 5 years for about $3,400 (no deductable, very few exclusions). Like to get advice on this issue, is it worth it?

driftracer · January 2004

If it's a Mercedes-Benz warranty, then you may be doing yourself a favor. If it's an aftermarket/private company, chances are better than not that you'll be wasting money and initiating higher blood pressure.

brozhnik · January 2004

For a VW Passat, some VW dealers offer a "Volkswagen Real Driver" extended warranty, which is more or less ok as far as exclusions, services etc. But it is backed by "Fidelity Warranty Service" of Deerfield Beach, Fl. Anybody know anything about this outfit? Is this no better than any 3rd-party warranty, or does the "VW Real Driver" add any value?
Thanks.
(BTW, it does have exclusions (like "overheating"), but not more than usual; and it does allow the use of aftermarket parts. Any comments on that?)

driftracer · January 2004

Volkswagen, I wouldn't look twice.

The overheating exclusion is common with aftermarket warranties and gets them out of paying a LOT of big money claims.

ateixeira · January 2004

Overheating seems like a big loophole.

Say your head gasket leaks and you blow a piston through the block.

They'll be glad to give you $12 for a new head gasket.

Nice. The new engine will cost many thousands of dollars.

-juice

driftracer · January 2004

but because you overheated the car, the private warranty company is off the hook, and you just bought a motor for a routine failure, involving parts covered under factory warranties.

fimo_s · January 2004

Is anyone know about Viking extended car warranty? They also specializing in many other product warranties like: houses,kitchen equipment,furniture and so on.
Thank's.

driftracer · January 2004

is an insurance policy, whether it's on a car or a toaster.

It's still not a "warranty", it's still written by a private company with an adjuster whose primary goal is cutting down on claims, and then there's the whole financial solvency issue - use at your own risk.

teacherjim · January 2004

My daughter bought a 2001 Chey Malibu with 26800 miles and 4 months left on the factory. She paid $1100 for a 36 month 36000 mile $200 deductable GM extended warranty. The warranty is the top of the line GM warranty. She did this Wed Jan 28, she thinks they charged her to much and is having second thoughts about it. The question is, since it has only been 3 days can she cancel it and get all or most of her money back? Also did she pay too much for the warranty? any idea whatthese GM plans cost for the type of coverage she wanted? Thanks for any advice.

driftracer · January 2004

warranty at any time - not a problem. Another choice, though, is to go back and talk to the F&I person and tell them your thoughts. The F&I person is facing a chargeback if the warranty is cancelled, so they will be motivated to lower the price.

If I remember correctly, cost on the warranty is around $600. If you offered $100 over...

Better yet, have the person SHOW YOU their warranty book with costs listed.

Again, you certainly can cancel it. Now, on another note, if it was financed with the car, you won't get the refund, your bank will - the refund will be applied to the loan - nothing changes with payments and the like, except that at the end, you won't have to pay a couple of payments...

TMLTML · February 2004

FYI - Just bought a 7 year/75,000 mile Platinum $0 deductible Toyota Extra Care Vehicle Service Agreement from Red McCombs Toyota in San Antonio, Texas for $625, which P.J., the F&I guy said was $50 over his cost. It is administered by GS Administrators, Inc, which he said was simply Gulf States Toyota, the distributor. Anybody have any problems with Toyota Extra Care?

Any caveats about fulfilling the maintenance obligations. I remember the Sienna engine Sludge warranty voided debacle, (which caused me to buy a Odessey).

dwberson · February 2004

got 30 percent off! found a web site of a chrysler dealer in iowa that discounts the factory extended warranties, and the dealer i just purchase my pacifica from was willing to match it. got the maximum care package. with all of the electronics on this vehicle, i thought it would prudent to be sure that everything was covered.

demschr · February 2004

I know this is getting old. I got taken by Warranty Gold and hate to be taken once again. I listened to the sales pitch from Continental with whom I had tried just before Warranty Gold and then cancelled before enrolling with Warranty Gold because of the price and no deductible.I did get me deposit back with Continental with no problem, so they seem legitimate in that respect.

I am willing to look at their policy again and perhaps try agin. Does anyone have any negative experiences with them in submitting claims, denial, time delays in paying claims etc... Thanks.

KCRam · February 2004

Hi demschr. The company you need to concern yourself with is not the marketer, but the re-insurer - they are the ones paying the claims. It was NWIG's collapse that caused the problems with Warranty Gold and Smart Choice. If your vehicle was bought new and still has its factory warranty in effect, I'd seriously recommend getting a manufacturer plan if you feel you need extended coverage. If the car is used or out of warranty, then you need to check on the re-insurer's solvency and assets. If a plan was backed by Allstate, Stare Farm, or some other large well-known insurance firm, that's great. If it's some small RRG (risk retention group) like NWIG that you've never heard of before, you should probably avoid it.

kcram
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demschr · February 2004

Thanks, Kcram. How do I find out the name of the reinsurer. In the old contract I had with them, it lists Marathon Administrative Company and then Royal Administrative Services who Marathon has contracted with to administer the provisions of the contract.

With this said, then who is the insurance company that backs it? When I was speaking to them on the phone, he mentioned a place in Switzerland who insures IBM and Daimen Chrysler. I better get the name then of the insurabce company then, but where do I get this info if not in the contract book?

oracleboy · February 2004

Does anyone know how much of contract price is reserved for claims? I am guessing it is quite trivial. Take a price of $1500, deduct some money off the top for the vendors credit card processing fee, then subtract out the companys phone bill, rent, wages for the phone reps., a small piece for the various administrative and insurance entities listed in your contract... then maybe half or more of what is left at that point is declared profit upfront. Id wager a years pay that if we knew how much these service contract companies reserve/budget for actual claims, it would be no shock that these companies routinely go bankrupt as part of their business model. Clearly, based upon all the ways your money gets divvied up if you buy an automotive service contract, you would be better off just putting the money aside for repairs yourself. One rationale behind buying a service contract may be the potential occurrence of a large repair costing a few times the price of the contract. However, if it happens too close to the purchase of the contract, the claim will be denied as a pre-existing condition, but if it happens too much later, the pyramid may have collapsed.

KCRam · February 2004

demschr, whomever pays the claims is the responsible firm you need to examine. Based on what you mentioned, that would be Royal. With a manufacturer like DC, yes, they have insurance on their financial holdings, but they administer the policy themselves, and that's the key difference. When my Dodge Ram had an issue, the dealership (acting as a contracted manufacturer representative) determined if the repair fell under the Chrysler service contract. If so, I was charged only my deductible, and they simply filed the claim with DC. If there was disagreement or dispute, a DC rep made the inspection, not a third party inspector as with the private contracts.

DC and the other car manufacturers operate under the premise "we want this customer to buy another vehicle from us" - the private service contract admin says "we don't want to pay claims so that we can make money." And it's generally those philosophies that determine if a borderline repair will be covered or not - or in extreme cases, whether an entire repair is paid for when a covered part causes damage elsewhere. There have been many tales on these message boards where Small Component A failed and damaged Big Expensive Component B, but the third-party warranty would only pay for A's replacement, not the total repair.

kcram
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driftracer · February 2004

that's favorable to the consumer - the service manager at a manufacturer's dealership is the "adjuster" for the warranty. Third party warranties have private adjusters who thrive on disapproving claims.

q45man · February 2004

Why it is so important to maintain excellant relations and keep the SM your payroll [so he works hard for you].

Each dealership has a pool of good will money [from factory] each month depending on sales volume......the early in the month bird gets the dollar worms.

You want to be down on the list just below his Mother.

chrisgivens · February 2004

Continental is backed by a Risk Retention Group. They will not tell you that. If you call them enough, you will here "we are backed by a triple A rated company." There is no such thing. They are backed by a company with no rating. If you here the word reinsurance, stay away. Reinsurance means you are doing business with a RRG. I looked into Continental a good bit and the more I spoke with them and looked into it, the more lies I heard. The coverage is not any good anyway. It is a listed plan.

demschr · February 2004

Thanks for the comments- but Chrisgivens mentioned the coverage they have is not good as it is a listed plan. What is a listed plan? The list of things they cover and don't?

I have since called and found out the administrator, Royal Administration Services, uses Lyndon Property Insurance in St. Louis, Mo.

Any feedback on this? Or still stay clear of them? I'm beginning to think noone on this board is in favor of any extended warranties unless it is bought form a delaership? Am I understanding this correctly? Thanks for the input, appreciate it.

driftracer · February 2004

"beginning to think no one on this board is in favor of any extended warranties unless it is bought form a dealership"

Not necessary bought from a dealership, because MANY dealerships sell aftermarket junk warranties, or worse, they self-insure under "First Extended".

I recommend ONLY warranties supported by the vehicle's manufacturer - GMPP for GM, ESP for Ford, etc.

demschr · February 2004

Driftracer- thnaks. Where do you go about purchasing these warranties supported by the manufacturer i.e. GM. My car is out of warranty just 6 months. Can you still get one of those if a car is out of warranty?

jratcliffe · February 2004

Since your car is out of warranty, I don't believe you can still get a GM-backed warranty. That being said, I'd recommend taking the money you would have spent on an extended warranty, and putting it in a savings account. Then, pay for repairs out of that account. Buying a third-party extended warranty requires you to believe three things:
1. If the policy costs $X, then you'll have more than $X in covered expenses over the life of the warranty
2. The warranty provider has to actually authorize the repair (i.e. not weasel out of it - remember, GM is trying to keep you happy with GM b/c of your next car purchase - a 3rd party warranty provider has no such incentive)
3. If they do authorize, that their financial condition will allow them to make the repair - remember that if #1 holds for all their customers, then they'll go bankrupt, which is what happened to NWIG, which had backed Warranty Gold's policies.

If either 1, 2, or 3 isn't true, then you've thrown away money on the warranty.

mitzij · February 2004

jratcliffe is 100% right.

You ask about 'listed' plans. Many service contracts list every part covered. They want you to think that most of your car's parts are covered. In reality, these listed plans cover less than the other kind. An exclusionary plan lists parts that are not covered, and states if it's not on the list, it's covered. These plans generally cover more than a listed plan.

But, like I said, jratcliffe is right. You're better off socking away some money in case of a rainy day instead of buying a service contract.

chrisgivens · February 2004

Ask Continental to send you a sample contract. I couldn't get them to send me one. The contract will show who insures it. If you do buy a plan, buy one backed by a true insurance company and not a risk retention group. I would make sure the insurance company has a very good rating, no lower than A. There are good companies out there. You might have to look hard to find them. Some of these people are just gun shy because they got burned by a risk retention group.

demschr · February 2004

I have a contract from them (that I cancelled during the review period and then went with Warranty Gold), but the insurance company is not mentioned. I called the administrator (royal) and they told me it was Lyndon Property Insurance from St. Louis.

I am just surprised that I did not see that in the contract.

chrisgivens · February 2004

Continental is backed by a RRG. I don't know of too many companies that aren't backed by RRGs. Read the posts about RRGs.

longisland · February 2004

I just purchased a 2004 Quest and the Gold Preferred warranty, 72 months / 75000 miles, $50 deductible for $995.

Can anyone tell me if this is a resonable price and if they have any experiences (good or bad) with Nissan Seurity Plus? Thanks.

driftracer · February 2004

so you should have no hassles or trouble, but isn't it a little late to ask if the price was right?

longisland · February 2004

Yes it is Nissan's plan. Not really too late to ask about price. I can cancel it at no cost at this point. I'd also like some leverage to renegotiate the deal with them if I can do better.

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