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Extended Warranties

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Comments

  • greglawsongreglawson Posts: 20
    Hi

    I was looking at a couple of used cars (both Hondas and Toyotas) that were between 2001 and 2003 model years, and I was wondering whether or not we would be able to buy a manufacturer's extended warranty for them considering that we were not the original owners?

    How would the vehicle's current warranty status (in or out of warranty) change things?

    Thanks
  • akanglakangl Posts: 3,651
    If the car is still under the 3 year/36k mile manufacturer warranty you CAN put an manufacturer backed extended warranty on it regardless if you are the 1st owner or the 20th.
  • courtney11courtney11 Posts: 77
    I own a 01' TL with 27000 miles. The warranty will be up in October. The extended warranty will run $1480 plus tax with a $50 per repair added. Considering I drive about 5000 miles a year and the transmission is covered for 7 years and 100,000 miles would you consider this. So far I have had little trouble with the car. If I drive this car for 2 more years and 10,000 miles it is essentially costing me $.15 a mile. This seems very high, I am considering taking my chances. Any thoughts would be greatly appreciated.
  • mitzijmitzij Posts: 613
    You've got a nice car. As long as you've maintained it well, it will be a good car for a long while. I'd skip the service contract, and just keep taking good care of it.
  • rickg1rickg1 Posts: 1
    Hello! We just purchased a 2003 Nissan Sentra from a Nissan dealership with 45,000 kms. Thus, we have 15,000 kms remaining on the current manufacturers warranty. The dealer has offered an additional 3yr or 60,000 kms warranty for an additional cost (over $1000). It seems like a lot of money! And we don't drive much. I can't see us driving another 75,000 over the next 4 yrs. This is our first Nissan purchase. I'm looking for some feedback from other drivers regarding extended warranty purchases, especially current or former Nissan owners! Cheers, rickg1
  • sjspnbsjspnb Posts: 1
    My 2003 Chevy Impala is almost at it's 30,000 mile mark, so the warranty is nearly gone. I'm debating about buying the extended warranty now before it runs out. I haven't had any (only very minor) issues with the car yet, mostly highway miles, and it's the primary vehicle for my family for long trips. I've heard that you can purchase an ext warranty if you do so before the original warranty runs out. Is this true? Is this something anyone would recommend?
  • jasmith52jasmith52 Posts: 460
    Think of an extended warranty as buying insurance. If a few repairs on your car will do a big number on your budget then maybe an extended warranty is for you.

    However, If you look at many cars, the warranty claims of those cars will be significantly less than the price paid for the extended warranties. So the average extended warranty is a money losing proposition for the buyer.

    Every car is different of coarse. A few cars will need lots of warranty work and those people will come out ahead. Most cars won't need much warranty work and those people will have paid more money for the warranty than they get back in repairs.

    You will just need to examine your situation and consider what's best.

    Also, as a side comment, many extended warranty policies are written by flakey companies that either

    1)don't pay what they should. ie - they challange every claim.
    2) Hand out big bonuses to the principals and then go bankrupt just when you might need a repair

    The only extended warranty that is worth anything (in my opinion) is one written by the original manufacturer (GM in your case).
  • I treat my car better than i treat most human beings. Oil changes every 3k miles, if i hear the slightest clink, ding, knock etc, i have the car in the shop within an hour, etc etc. So i took it in cuz i was hearing a click noise when i depressed the brakes--turns out the "transfer case" had a leak, and there was no fluid in it. so i need a new transfer case (2400 bucks) and my bumper to bumper warranty through Universal Underwriters is trying to say that i am negligent. I have provided documentation of every oil change, service visit, etc etc, yet they still say they wont cover. Has anyone on this thread ever had this type of problem with their warranty provider, and if so, what is my next step? Court (ugh)? SO FRUSTRATED!!!!!!!!
  • jasmith52jasmith52 Posts: 460
    That fluid from the transfer case must have gone somewhere.

    Didn't you see a leak or a puddle or drops of something where the car gets parked ??
  • vjvvjv Posts: 2
    Does anybody know anything about Mercury Insurance group.. I bought a 2001 accord EX and my bank is providing extended warranty thru these guys ... yep! before u ask ..my basic warranty expired .. so I cannot get manufacturers extended warranty any input is greatly appreciated
  • jasmith52jasmith52 Posts: 460
    Mercury Insurance is a major insurance company. They have both auto and homeowners insurance.

    I have personally been insured with them for the last several years. However I don't have an extended warranty with them and I haven't had any claims so I can't tell you about their service.

    At least with Mercury you can beleive that they will be around should you need to file a warranty claim. That's certainly not true of many of the other extended warranty companies.
  • rookie1rookie1 Posts: 1
    I'm new at buying used cars and am considering buying from Carmax. Is it worth buying an extended warranty? I've heard that they are generally a losing proposition. I won;t buy a car having more than 30,000 miles. I drive 30K a year so I think in my case, I should buy at least a 3 year. Any advice? Thanks a million.
  • Hi rookie1. I always tell consumers who are interested in purchasing an extended warranty for their vehicle that it is in their best interest to purchase an official manufacturer-backed policy. Any warranty that you purchase from Carmax would probably be an aftermarket warranty. I have heard countless horror stories from consumers with non-manufacturer-backed extended warranties. Automakers are much more financially stable and less likely to go bankrupt and disappear with your money than an independent warranty provider would be. Furthermore, manufacturers are much more likely to step up to the plate and cover a repair without making you jump through all sorts of hoops because they want to keep you as a happy and loyal customer. If you have found a used vehicle that you like at Carmax, go ahead and purchase it. Then shop around for an official extended warranty with a few dealers that sell the same brand either in person, over the phone, or through the Internet. You should be able to purchase a manufacturer-backed warranty for your car or truck, as long as its original warranty has not expired yet.

    Car_man
    Host
    Smart Shoppers Message Board
  • vjvvjv Posts: 2
    But .. what if the basic warranty has already expired .. what is the best option in that scenario?
  • mitzijmitzij Posts: 613
    Put the money you would have spent on a service contract (say $1300) in a savings account and take good care of your car.
  • un-limitedun-limited Posts: 15
    You can still buy an extended manufacturer warranty and that is still the best way to go but will cost a little more but DEFINITELY worth a few $ extra vs a warranty that isn't worth the paper it's written on.
  • wes000wes000 Posts: 1
    I currently have a 2002 Santa Fe. I was at my dealer yesterday getting my oil changed and ran into my salesman. I spoke with him and it turns out for $17/mnth more I can have a brand new 2004 w/ better safety features and a couple other upgraded features. I think I am going to go for this but I was thinking about an extended warranty through Hyundai. It would increase the original bumper to bumper from 5yrs/60,000miles to 10yrs/100,000 miles. My salesman said that I could get it for a little under $1000. It is a full bumper to bumper warranty with zero deductible and it transferable to "one subsequent purchaser". Does this sound good to get? I have had the 2002 vehicle for 2.25 years and have 31,000 miles on it. An average of 13,800/year. That would really only get me protection for 7.25 years and not ten. That is only 2.25 more years than the standard warranty. Any advice would be appreciated. Oh and I would have to finance this warranty so this may cost $1100 or so.
  • sandman46sandman46 Posts: 1,798
    I'd go for the 2004. But you also need to find out all the subsequent costs associated with the swap. Do you have any idea when the new version of the Sante Fe will be released? If it's within the year...a 2005 model, it might be worth it to keep the current version and wait for the newer one to hit the market.
    All a matter of personal preference really. Just wanted to give you some food for thought though!

    The Sandman :-)
  • janzjanz Posts: 129
    if you are a regular reader of these posts then you KNOW you should look at the WHOLE deal, not just the monthly payment. (Still at $17 I don't think you'd go too wrong AND it would be newer.)

    And I disagree with your calculation about the extra coverage of the ex warranty. You are subtracting your length of ownership and mileage out of the extended warranty, but this is covered under the original one. Essentially a new clock start ticking once you reached 5 years/50K. It will offer you an ADDITIONAL 50K miles of coverage from where you are now, up to 100K, along with the 5 yrs. Finally, how do you add the extended warranty to the cost of a loan already financed? Or were you talking here about adding it to the new one?
  • exodusexodus Posts: 1
    Help!. I own a 2002 Mercedes C240 which is still under factory warranty till October 2005. I'm shopping around for an extended warranty. The dealerships I've gone to say they do not sell the mercedes warranty for cars not certified and quote me 3rd party warranties for about $3300 Just got a quote from my credit union for $1000 less than what I was quoted. Is this worth it? I'd like a mercedes warranty but can't seem to find any dealership that offers it. Any suggestions would be appreciated.
  • Hi exodus. I believe that one can only get an official manufacturer-backed extended warranty for a number of luxury brands if the vehicle that you are purchase has been Certified. $3,300 is a lot of money to spend for an extended warranty from an independent provider. If owned a car and was quoted this price, I personally would be inclined to just set that money aside and use it in the event that I need to make any major repairs rather than spend it on a warranty from an independent company. There is a good chance that you will not have to spend more on that to fix your vehicle during the period of time that an extended warranty would have covered you. Afterall, the companies that sell warranties do not stay in business by paying out more money than they bring in.

    Car_man
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    Smart Shoppers Message Board
  • ra_coynera_coyne Posts: 1
    I just bought a 2003 Ford Taurus at Hertz. I was wondering if it is worth the money to buy the extended warranty. Thanks for the help.
  • Hi, this is my first post, but I have lurked in these forums for a long time. These forums are a great place to get information. I need some advice for my mother.

    My mother purchased an extended warranty for her vehicle. In December 2003, her vehicle needed some repairs. The warranty company authorized the repair company to do this work for about $1800 and the repairs were completed.

    Now it is July 2004 and the warranty company still has not paid the repair company for the repair work. The repair company has already turned this case over to a collection service. When contacted recently, the warranty company acknowledges that they are responsible for paying for the repair, but says that it currently does not have the money to pay. The warranty company says it will pay for the repair, but does not give any specific date for payment.

    I did some online research into the warranty company. The warranty company is being sued by a state attorney general. For details, see

    http://www.ag.state.oh.us/press_releases/2004/press_release_20040- 512b.htm

    Here is the warranty company's BBB report.

    http://www.cleveland.bbb.org/reports/newsearch2.asp?ID=1&ComI- D=0312000025000699

    The repair company's collection service is now asking my mother to personally pay for the repair since the warranty company has not paid after all this time. The collection service is threatening to sue my mother if she does not agree to pay.

    I looked over the paperwork my mother received from the repair company. The only relevant comment I found regarding the agreement between my mother, the warranty company, and the repair company is in the receipt. Here is the relevant comment.

    "WARRANTY COMPANY AUTHORIZED $xxxx.xx, CUSTOMER IS RESPONSIBLE FOR SHOP SUPPLIES, SALES TAX, FLUID & FILTER. $yyy.yy."

    xxxx.xx is about $1800, yyy.yy is about $200. My mother paid yyy.yy back in December 2003 at the time of the repair. My interpretation of the repair agreement is that this payment dispute is between the warranty company and the repair company and should be resolved by them directly without my mother's involvement.

    We submitted complaints to both the state attorney general and the BBB about a month ago. There has been no resolution yet.

    This is a bad situation. The repair company did their job and deserves to be paid, but I do not feel my mother is legally resposible for assuming the warranty company's debts. I feel the repair company and my mother are both victims in this situation.

    I am concerned about my mother being sued and the effect of this unresolved matter on her credit rating. The two options I see are:

    1. My mother pays the approximately $1800 to the repair company out of her own pocket and tries to get it back from the warranty company if the warranty company settles with the state attorney general. My mother will get the collection service off her back, but may be left holding the bag if the warranty company declares bankruptcy or disappears.

    2. Let the collection service sue my mother. Go to court and my mother pays if she loses.

    What do people think my mother should do? Does the collection service has a valid case for suing my mother or are they just throwing around baseless threats to try and scare her into paying? Thank you in advance for your response.
  • driftracerdriftracer Posts: 2,692
    repair order indicating that the customer is responsible no matter what, your mother isn't liable for the $1800.

    Most independent shops, unless they've done lots of business with a particluar extended warranty company, will require the customer to pay up front and collect from the extended warranty company - the authorization number/approval is the means through which to sue the company, but I think the shop will end up holding the bag on this one.

    I don't believe they have any grounds to collect from your mother, unless like I said, there's a clause where she's ultimately reponsible.

    Again, this is one of the many mightmares of dealing with aftermarket extended service contracts - that shop took a gamble and lost - from the sound of it, the service contract company is belly up.

    One more thing - contract cases like this are commonplace in my workload - if you'll scan both sides of the repair order and e-mail it to me, I'll review it for you.
  • Driftracer,

    Thank you so much for the detailed and informative post. It is responses like yours that make these forums such a good place to get information. Also, thank you for your generous offer to review the repair order. I might take you up on it later if the situation deteriorates, but I think my mother and I are OK for now. Thank you once again.
  • driftracerdriftracer Posts: 2,692
  • sandman46sandman46 Posts: 1,798
    You and Terry really make these forums a great thing. Without even knowing any of us, you both offer your time and knowledge free eventhough you both have "a life". And the humor you guys provide is priceless!
    I know that I speak for others in here when I say "Thank You both and G-d Bless!"

    The Sandman :-)
  • driftracerdriftracer Posts: 2,692
  • I'm just finishing up a 100,000 mile warranty/insurance with Warranty Direct. Only had about 5 items repaired that amounted to a little more money than I put out 2 1/2 years ago. If I would have read this forum back then, would probably say that I wouldn't have bought it.

    Now, looking back, it gave me some peace of mind over the last 30 months. And, when the repair shops called Warranty Direct for approvals, except for some phone tag between WD and the repair shop, the claims were handled expeditiously. The only thing that I learned that I would like to pass on is that one should ask the repair shop (a Cadillac dealer in my case) if they accept the time offered by the standard guides (Motor's, etc.). Just had a $400+ water pump job that they covered all but $140, because the dealer charged for 3 hours even though the book only showed 1.4 hours for the job.

    Knowing then what I know now, would have asked the service writer up front and probably would have gone elsewhere and found someone that would accept industry standard job allowance.

    I guess in summary, I would call it a neutral experience. I don't think Warranty Direct handled this badly, but the way I read the original agreement was that I could take car anywhere and they would pick up the cost no matter what.

    Live and learn, huh?
  • cjm1cjm1 Posts: 1
    Hi--I'd like your thoughts on a warranty I'm thinking about buying. I'm new to the world of extended warranties because I usually buy well-maintained, reliable used cars from individuals. This time, however, I bought a '96 Tahoe from a dealership (59K miles)and I'm thinking about buying one. The one I'm looking at is from Performance First--I guess that's the administrator. The price is $1700 with a $200/visit deductible. It's basically bumper to bumper for 3yrs/36K miles. What do you think? What are the names of some other reliable warranty companies that I should get quotes from? Any assistance would be great.
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