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Extended Warranties

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  • driftracerdriftracer Member Posts: 2,448
    to do.
  • oracleboyoracleboy Member Posts: 3
    given that dealers would never try to take advantage of a consumer...
  • driftracerdriftracer Member Posts: 2,448
    selling something strongly, and courting the "payment buyer", then there's fraud.

    I don't condone fraud or shell games, and that's what the "warranty shuffle" described above seems to be.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    While it certainly makes sense to research the price of an extended warranty prior to purchasing one, consumers often do have the right to cancel most extended warranties without any penalty early on. As a result, if they want to shop around after the fact, they are completely free to do so. As a general rule dealership employees are trying to make as much money for their employers as possible and consumers are trying to save as much money for their families as possible. I personally don't see anything wrong with making sure that one got a good deal on their warranty. These message boards exist for consumers to talk about the industry and to help others get the best deal possible, not for dealership employees to make them feel guilty about trying to get a good deal.

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  • driftracerdriftracer Member Posts: 2,448
    price on a warranty. You tell the guy you're interested, then tell him to pull out his rate/cost book and show you his cost, like many do with invoice price on a car. Then, you offer $50 or $100, or whatever amount you think is fair, over their cost. I guarantee you'll be happier with that number that whatever the F&I person pulls out of the air, and you can make your decision right then and feel good about it.

    The after-the-fact deal, in my opinion, is wrong because it affects someone's pay - you wouldn't want anyone having the ability to change your paycheck, would you?

    I do the dealership thing part-time - I'm a consumer the rest of the time, so it's easy for me to see both sides of the coin - no guilt trips intended.
  • bg1bg1 Member Posts: 1
    Has anyone heard of this company? They come to me recommended by someone my wife works with. His family owns a leasing company in California, but the company is based in Tennassee. Any comments would be appreciated.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bg1. I am not personally familiar with the company that you mentioned in your post. However, whenever consumers ask me what sort of extended warranty they should purchase for their car or truck, I always recommend that they purchase an official policy that is sold by their vehicle's manufacturer. Automakers are much more likely to stand behind their products and cover any repairs that you need without any hassle than some random third party is. Remember, it is in manufacturers' best interest to keep you as a happy and loyal customer. Furthermore, it is not very likely that the manufacturer of your vehicle is going to go bankrupt. I can't say the same for some of the third party warranty providers. I have heard countless of horror stories about third party warranties from consumers who visit these forums. What model are you interested in purchasing a policy for? Perhaps I can help you to find out more information about whether its maker has an official extended warranty and if so what levels of coverage it offers.

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  • q45manq45man Member Posts: 416
    Remember most non manufacturers extended service insurance companies pay $50-$100 for each buying referral.
    So friends of friends may not have your best interests at heart.
  • plainsman1973plainsman1973 Member Posts: 8
    I have bought my second CNA extended warranty now. 2003Sierra HD Crew loaded 7/100 no deduct for $1600.

    The CNA autowarranties are owed by greater CNA.
  • ateixeiraateixeira Member Posts: 72,587
    To address the original question, I think $995 is reasonable, yes. The Quest is a new model, it's feature loaded, and hourly labor rates at my dealer have hit $92 per. It doesn't take long to break even nowadays.

    I bet you also get roadside assistance? If so, AAA used to cost us $71 per year, over those 6 years that adds up to $426 all by itself.

    Enjoy the roadside assistance and the piece of mind, I think you did just fine.

    -juice
  • mitzijmitzij Member Posts: 613
    Why do you insist on comparing AAA to a service contract? I've seen this argument on several service contract company websites, too. They're two WAY different deals. Yeah, they both have roadside assistance, but AAA offers alot of other stuff. It's a different critter. It's not a service contract. Many towing companies accept AAA, but not service contracts. There is a reason-AAA pays, many service contracts don't. (see warranty gold thread)
  • driftracerdriftracer Member Posts: 2,448
    (please) If I may speak for AJ, he's probably referring to towing in conjunction with a failure and repair - just like a tow AAA would provide for you.
  • KCRamKCRam Member Posts: 3,516
    Mitzi,

    The reason people compare AAA with their service contracts is to see whether they can drop AAA during the life of the contract. I pay $90/year for AAA Plus, which is very close to what my Chrysler 7/100 provided on my Dodge Ram in terms of roadside assistance benefits. (I did not have AAA until the Chrysler plan ended.) Which means for my next truck, I may save $450-630 over 5-7 years by getting another 7/100 plan instead of maintaining AAA. For those people who regularly use the travel assistance and other features of AAA, it's less of a difference. But for those who primarily have it for roadside help (like me), this is money that can be directly compared to the price of a service contract. Say my dealer gives me the 7/100 for $1800, and I use it up in 5 years at 20k miles per year. That means I really have only paid $1350 for the extended warranty coverage, because I would have been paying the other $450 for roadside assistance either way. This means I could compare the Chrysler plan as a $1350 deal to other contracts... not that I would go third-party anyway...

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  • ateixeiraateixeira Member Posts: 72,587
    Subaru gave us a similar roadside assistance subscription, I forget the exact name now. Any how, the cost to renew is $71 per year, same as AAA, so the value is roughly the same and doesn't change my point one bit.

    We had AAA and got maps and trip tiks once in a blue moon, plus in some cases you get little discounts here and there. Mostly those discounts were replaced by using our Coscto membership or other means.

    Bottom line: we don't miss AAA.

    -juice
  • mitzijmitzij Member Posts: 613
    But you can't compare a service contract 1 to 1 with a different service, like AAA. The two address different needs. If you want travel info and roadside assistance, use AAA or a similar company. If you want car repair and roadside assistance, buy a service contract. It's one of the more common arguments for purchasing a service contract and it's misleading.

    And while I'm venting about a pet peeve: it's PEACE of mind, like peace and harmony, not PIECE of mind, like piece of cake. That term is misspelled so much on this and other forums it's pathetic.
  • ateixeiraateixeira Member Posts: 72,587
    Now I wish I remembered the name of the company that provides Subaru's roadside assistance program. There are other benefits as well, but we just wanted the basics - towing, run out of gas, lockout, etc.

    -juice
  • ateixeiraateixeira Member Posts: 72,587
    By the way, I disagree, and I googled "piece of mind" just to verify.

    I found more than 6 million hits.

    "Peace of mind" came up with 5.4 million hits.

    Majority wins. ;-)

    -juice
  • mitzijmitzij Member Posts: 613
    The Majority is undereducated or just plain can't spell.

    I'd give you a piece of my mind, but it wouldn't give me peace of mind.
  • erk5erk5 Member Posts: 21
    A friend is planning to buy a 2001 QX4. Since it has more than 60K miles it's no longer under infiniti's warranty. After reading a lot of posts here, most of you advise staying away from 3rd party warranty companies. Are there absolutely no reliable 3rd party warranty companies? And is it possible to get an extended warranty from infiniti even though it has already run out and the car will be purchased from a non-infiniti dealer?
  • ateixeiraateixeira Member Posts: 72,587
    Well, it's a cliche, and I'm just using the one used by the majority, which is what cliches are all about.

    Maybe I'll use more creative language next time to avoid the issue completely. ;-)

    At this point an extended warranty on that QX4 would not be cost effective. You usually have to buy within the Bumper to Bumper warranty. It would cost a fortune now.

    -juice
  • dochandsdochands Member Posts: 1
    From what I have read I should stay away from Continental They are very aggressive for sure.

    But Extended Warranty claims they are an extension of the Chrysler warranty and are therefore accepted by all dealerships.

    Does anyone know if this is true? From what I have read little is true. :>)
  • driftracerdriftracer Member Posts: 2,448
    "But Extended Warranty claims they are an extension of the Chrysler warranty and are therefore accepted by all dealerships"

    "Extended Warranty Pro" is certainly not associated with DaimlerChrysler - additionally, many aftermarket warranty (insurance) companies like to say "our plan is accepted at every place, nation-wide".

    That's bunk, too. What they mean is that YOUR VEHICLE can be worked on anywhere, but in fact, very few dealerships are set up to direct bill ANY aftermarket warranty company, unless that dealership sells that specific warranty.

    You end up waiting for authorization, both for repairs and a rental car, and in many cases, you end up paying up front and waiting a while for reimbursement.

    No thanks - I'll stick to the manufacturer's plans.
  • golicgolic Member Posts: 714
    I drive and 2001 olds aurora 3.5. I have the car for 2yrs and now 45k miles. The car came with the 5yr/60K warranty on it. And has come in very handy having to replace the trans at 37K.

    I would like to drive the car to 100K. And after reading most of the posts here would prolly be interested in a GM extended extended warranty, is there such a thing and does anyone know what the "cost" would be?

    Thanks for your help.

    G-
  • volvojohnvolvojohn Member Posts: 4
    Golic:
    I'm not familiar with the warranty from GM, but be sure you understand it before "jumping".
    1. Make sure it is through GM and that warranty payments are made to the dealer. You don't want to be in the position of having to prove a claim to a third party insuror as you do with health insurance.
    2. Be sure you understand the financial aspects of extended warranties. By that I mean realize you are essentially entering into a bet with GM. You are betting that your claims will exceed the amount of the premium and GM is betting that they won't. Also, you will pay the premium up front while GM will have the use of your money until the claims (if any) come rolling in.

    3. Finally, it's been my experience that most problems are identified and solved within the first 50,000 miles. From 50,000 to 150,000 miles I've had very few problems with the many cars I've owned. That time is followed by things starting to wear out. Yes, you may have a transmission go out at 90,000 miles. But GM is pretty sure most of their cars won't have that problem. Otherwise they wouldn't be in the business of selling extended warranties - at least at current prices.
  • jratcliffejratcliffe Member Posts: 233
    The GM Protection Plan (www.gmprotectionplan.com) is the GM-backed extended warranty, and the only one (in my opinion) you should consider. You can get the plan from any GM dealer (doesn't need to be the one where you bought your car), so shop around.
  • golicgolic Member Posts: 714
    Thanks for your helpful insight. I will shop around and see what the price is. You are right it is insurance and a bet. <nodnod> Depending on the price I will weigh the odds. I will post what i find out in pricing.<roll dice>

    golic
  • wallyhwallyh Member Posts: 1
    FYI...I was told by the sales rep at Continental Warranty that the insurance company backing their coverage was Marathon Ins out of O'fallon IL. & that it has an A+ rating. A.M.Best rating for this company is NR-1 (insufficent data).
  • driftracerdriftracer Member Posts: 2,448
    I give up - people just don't get it.
  • akanglakangl Member Posts: 3,281
    Nope, and they never will. I was (notice I said was) one who thought that an internet company that was selling an extended warranty was a good bet. I was buying a policy through Warranty Gold, thankfully I read through the thread on Edmunds and cancelled right away, didn't lose any money.

    I will only buy manufacturer backed ESC's from now on, was almost an expensive lesson.
  • driftracerdriftracer Member Posts: 2,448
    You're right - my position as a service manager makes me dislike those aftermarket warranties much more than losing the sale as an F&I guy.

    I could go on for days with some of the nightmares (2 week waits, used parts, etc) that I've seen customers go through (not to mention the service guys!).
  • mitzijmitzij Member Posts: 613
    I had a customer come in this morning. He had a blank contract from a service contract company I'd never heard of. He wanted my opinion on whether or not he should buy it. The front page said it was backed by a risk retention group. I told him it was a shaky deal, and gave him my general opinion of service contracts. (see previous posts) Now, I could have sent him to my F&I guy for a quick sell, but I didn't. If I want him to come back as a repeat service and sales customer, I've got to tell him like it is.

    And, Drift, they don't learn. This guy stated that he had been burned in the past by a service contract, yet was willing to fork out more money to buy another one.
  • driftracerdriftracer Member Posts: 2,448
    I've had people get 80,000 mile used engines in their cars from aftermarket service contract companies. My techs have had to literally scrape off the leaked oil off of the block to get to the engine mount bolts.

    I'm thinking I don't want a piece like that in MY car!

    I've even had them ask if GMPP or DCC would install a used/junkyard engine - absolutely not is the answer. The response? "The aftermarket warranty is $50 cheaper".

    Maybe, maybe not!!
  • hightorqhightorq Member Posts: 7
    does anyone have any experience with Auto Warranty Broker? I own two worthless Warranty Gold warranties and am searching for a replacement, Did a lot of research on AWB and others but other peoples' experience will make my decision. Thanks
  • driftracerdriftracer Member Posts: 2,448
    Warranty Gold lesson and don't buy another aftermarket warranty.
  • fimo_sfimo_s Member Posts: 14
    I just got an offer for extended warranty from "Brandy's protection program", underwritten by AllState Insurance company and Westchester Fire insurance company{ACE USA Group}. Who knows about it? Information about it on www.Brandysauto.com Please let me know your opinion. I did not file an application with them,so I don't have any more inform. on it. But would like to know what you think about the company and their extended warranty.
     
  • driftracerdriftracer Member Posts: 2,448
    "NO Deductible (if repairs are performed at any Brandy's location)"

    You're locked into using this particular shop - what's the deductible if you're on vacation in Florida? I guess you have to pay up front and hope like heck that the warranty company pays you back?

    "Underwritten by AllState Insurance Company and Westchester Fire Insurance Co. (ACE USA Group) (rated A+ strong by Standard and Poor's and $30 billion dollars behind it)"

    Just so we're clear, it's just another insurance policy - please don't even think of using the word "warranty" and the legal protection that goes with it.

    "Coverage includes normal wear & tear of mechanical & electrical components!"

    Really, even brakes? What about wiper blades? Tires? Very misleading.

    "Expert Claim Handling"

    To whose advantage - yours, or theirs?

    "Reimbursement up to $100 for towing expense per occurrence"

    Keyword - REIMBURSEMENT - also, if it's more than that, you just pay until your car gets to a shop, at $3-5 a mile.

    "All Factory Installed Luxury Options Included: GPS, phone, TV, CD player, etc"

    There's a typical aftermarket service contract "out" - if your alarm, remote start system, phone, sunroof, or whatever was installed at Best Buy or Tweeter, you don't have an electrical system warranty, because it says "factory installed".
  • beemerbeemer Member Posts: 2
    I have a 2001 325i Sport/Premium with 49,300 miles in 2 1/2 yrs, and basically blew through my mfgr. warranty. I know BMW does't offer Extended Manufacturer's Warrany on its vehicles, but I can purchase an aftermarket 3rd party Extended Warranty at the BMW dealer for roughly $2300-2600 for an additional 45,000-60,000 (meaning total on car 95,000-110,000) miles... MAYBE. I keep receiving mixed information from the BMW finance reps (they sell it) about coverage (really, exclusions on coverage), deductibles, time frame to purchase within, and definitely cost, depending on WHAT/WHICH dealer I call. Any advice?? PLEASE, I'm at 49,300 miles and NEED to make a decision since I do plan on keeping the car for at least another 2-3 years. It seems ridiculous that I have to "shop around" even amongst the BMW dealers themselves to find the best warranty coverage for the best price -- after how many would I stop and still get peace of mind?

    The other problem is "what I hear on the phone, may not be what I get" and it doesn't seem I can find out until I decide to actually buy the warranty from the specific dealer and they finally whip out the contract. Any one know about "Portfolio" or "Pinnacle from National Auto Care Corp" as 3rd party warranty providers?

    Thanks in advance for any advice - this is my first post
  • driftracerdriftracer Member Posts: 2,448
    is usually sold by dealers who self-insure, just like those that use "First Extended".

    You have to seriously debate how long you'll keep the car.
  • envoy1envoy1 Member Posts: 5
    I have a 2002 envoy still in the 36/36000. What should I reasonably pay for GMPP to extend warranty period for 5yr/100,000. Will the F& I guy really show me his cost? Dealer invoices never show true cost. Alot is deducted at the end of a batch of invoices that you never see. Does it pay to call different GM dealers?
  • driftracerdriftracer Member Posts: 2,448
    "Dealer invoices never show true cost. Alot is deducted at the end of a batch of invoices that you never see."

    You're talking about a new vehicle invoice, which has NOTHING to do with the cost book that the F&I guy his warranty info from.

    Also, that second sentence makes no sense.

    Yes, an F&I guy will show you his cost book, if you're nice about it. I did when I was in F&I.
  • envoy1envoy1 Member Posts: 5
  • driftracerdriftracer Member Posts: 2,448
    I'm used to the people with an anti-dealer attitude who want dealer-experienced people to overlook that attitude and help them anyway. I have a slight problem with that.

    You get more flies with sugar than...

    Walk into the dealership, ask for the F&I person, let him/her know you're wanting to look at GMPP contracts - let them know up front that you'd like to offer them a fair profit over their cost and you'd like to SEE their cost book.

    Either they'll like the idea or they won't.

    I never minded selling contracts outside of a car deal because even if I only made $100-200 on a contract, that money went against the total department number and helped my overall deal average (major issue with F&I pay and incentives).
  • ateixeiraateixeira Member Posts: 72,587
    Thanks for the insider's info, that could be useful for me some day.

    -juice
  • fimo_sfimo_s Member Posts: 14
    Thank you for your imput. It was very helpfull.
  • driftracerdriftracer Member Posts: 2,448
  • phkckphkck Member Posts: 185
    I recently purchased an 04 Acura TL with navigation. I was talking to the finance guy and got some fairly straight forward answers about the HondaCare warranty. The dealers "in house" warranty does not cover navigation where the Honda care will. Also, I can buy the Honda(Acura) warranty until 56,000 miles. If I buy within the first 3y/36K there is a $90 surcharge, within the 4y/50k warranty period this climbs to a $120 surcharge and at 56K it is a $240 surcharge.
    So, I plan to wait until just before 4 yrs and if I plan on keeping the car will pay for the HondaCare plus $120 surcharge. By the way, Dealer wanted to start pricing at $2000. On-line a few dealers are $1100.
  • mitzijmitzij Member Posts: 613
    You could try printing quotes from online dealers, going to your selling dealer and see if he will match, or at least get closer to, the online deals. It is good that you're being smart enough to wait awhile,though. A lot of people get antsy and spend their money before they stop and think.
  • bigfurbigfur Member Posts: 649
    Check out this websight for GMPP prices. I took the prices to my local dealer and they matched it. Best prices i saw on the GMPP anywhere. http://www.gmoutlet.com/gmpp.htm Give it a shot and see what you can get.
  • garygglgaryggl Member Posts: 12
    I was quoted $625 for 7/75/0 on a Honda Care warranty. That sounds pretty good considering I paid $925 for my Odyssey's 7/100/0 two years ago. This quote was from UnionPark Honda in Wilmington, Delaware. Does this price seem reasonable to any CR-V owners?
  • maxx4memaxx4me Member Posts: 1,340
    you guys are the greatest. For the past 3 years, I have been researching 3 warranty companies: Gold, Bynet, and Wizard. I hope that you all can take some pride in the fact that you have helped me to see the light. I will NEVER by an after market plan. I had one with my 626, and ended up puting $3,500 of repairs on my $650 warranty. I swore I would never buy a car without one again. Now I'm a changed man thanks to your insights. It is obvious that the aftermarket warranties are a very bad choice. As with any business, they are simply there to make money; NOT to insure that your car runs perfectly forever. The HOST's comment was right on: it is much more likely that the manufacturer of your car will ensure that you are a happy customer (no matter what the cost) so you will buy their product again and again. These aftermarket companies are brilliant at their web designs and marketing people. Nice try guys: you almost had me.

    bigfir: thanks so much for your GMPP posting. that is a great site and highlights one important thing to me. When I do buy my Maxx, the dealer will have to offer me a plan at half the cost of the company you posted for. GM's prices are waaaay too high and only go up to either 7 years or 100,000 miles. At the time of a new car purchase, that simply is not enough time or miles for me. I own my cars a long time, and will therefore take all of your advice and save my money and become my own extended warranty company (should my Vibe or Maxx ever break down).
    For the rest of you: good luck with your choice. I fully understand why you are buying a plan. I was once there myself. I feel a little richer and wiser now cyberfriends. Thanks to you all.
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