Extended vehicle warranty

[Patrick]

First off, I don't like any of these scams.

A friend bought one of these warranties, one of the ones or the one that is advertised on TV constantly. He needed some work/parts replaced on his car.; tie-rod end and drag link. Simple quick east stuff. Went to the dealership. The warranty company said they have to supply and send the parts. No overnight shipping with them. After 2 attempts the parts were wrong both times and they won't pay for the rental vehicle.  Almost 2 weeks and the car still isn't fixed.

[Robert]

The reason the warranty company had to supply the parts is they look on the internet and find a lower price part and the dealer is of course going to be higher and they say will supply the part or pay just the amount they find the part for. They usually give the dealer or shop the option of lowering their price or having the parts shipped in by the warranty company. The dealer could have refused and the warranty company would cover the part price for what they found and the customer would pay the difference. The customer could be notified of this and given the option also.

Many of these companies find any way to NOT pay, either part or the whole thing. The wording what they cover is way beyond what you would expect. But that is how they get you.

Go for the dealers part, get the car back, see how much they will reimburse and know this for any future repair. Its not unusual, its the way many of these companies do business.

[Robert]

Was really happy when one of these companies got their butt kicked in the same way they give it to their customers.

My friends Mercedes had transmission problems and he went to the dealer. They said the trans was bad due to water and would more than likely the water was coming from a bad radiator cooler. So the warrenty company authorized the trans but not the radiator. I told him and the dealership agreed to get that in writing and have it signed and dated. They got it all authorized signed and dated and the transmission finished and he took the car.

Less than 12 months later his transmission was exhibiting the same kind of problem. He brought it back to the dealer and sure enough the trans had gone bad from the cooler being bad again.

The warranty tried to get out of it and tried to pin it on the dealer but the dealer had done their homework  and had all the paperwork signed. So they presented it to the warranty company and they had to pay for the trans again along with the radiator.

Very seldom does it work this nicely for the customer and warranty companies should only be considered a discount most of the time.

Holding a car up for a small part is not really a reasonable thing to do and I would consider just paying what they wont cover.

[Rams]

Was really happy when one of these companies got their butt kicked in the same way they give it to their customers.

My friends Mercedes had transmission problems and he went to the dealer. They said the trans was bad due to water and would more than likely the water was coming from a bad radiator cooler. So the warrenty company authorized the trans but not the radiator. I told him and the dealership agreed to get that in writing and have it signed and dated. They got it all authorized signed and dated and the transmission finished and he took the car.

Less than 12 months later his transmission was exhibiting the same kind of problem. He brought it back to the dealer and sure enough the trans had gone bad from the cooler being bad again.

The warranty tried to get out of it and tried to pin it on the dealer but the dealer had done their homework  and had all the paperwork signed. So they presented it to the warranty company and they had to pay for the trans again along with the radiator.

Very seldom does it work this nicely for the customer and warranty companies should only be considered a discount most of the time.

Holding a car up for a small part is not really a reasonable thing to do and I would consider just paying what they wont cover.

Excellent story!   Thanks for posting it.  Now, can you tell me how to get off those same companies contact list?      Between my wife and I, we get about a dozen of these Spam Calls a week.

Rams   

[..]

All contracts in life should be thoroughly read before signing.

If you don't understand it ask for a written explanation or simply walk away.

[f6john]

In a weak moment, I bought an extended warranty on my wife’s Camary from the dealer. The car was loaded with technology and I didn’t want to have to pay through the nose it they gave any trouble. Two years in and the car has been trouble free, and my wife totals the car. I decided to buy the car back and have it repaired. Once you do that you have zero warranty from the factory and I was able to get approximately 50% of my money back on the warranty I purchased. Really a win-win for me, wife wasn’t injured, insurance paid off well, no car payments (still owed for we more years), car has been trouble free for the past 3 years since being repaired.

As an added bonus, when they call me to sell me an extended warranty, I tell them, “Sign me up! I’ve been wanting an extended warranty ever since the car was totaled and they sent me a rebuilt title.” Click.......

[scooperhsd]

Was really happy when one of these companies got their butt kicked in the same way they give it to their customers.

My friends Mercedes had transmission problems and he went to the dealer. They said the trans was bad due to water and would more than likely the water was coming from a bad radiator cooler. So the warrenty company authorized the trans but not the radiator. I told him and the dealership agreed to get that in writing and have it signed and dated. They got it all authorized signed and dated and the transmission finished and he took the car.

Less than 12 months later his transmission was exhibiting the same kind of problem. He brought it back to the dealer and sure enough the trans had gone bad from the cooler being bad again.

The warranty tried to get out of it and tried to pin it on the dealer but the dealer had done their homework  and had all the paperwork signed. So they presented it to the warranty company and they had to pay for the trans again along with the radiator.

Very seldom does it work this nicely for the customer and warranty companies should only be considered a discount most of the time.

Holding a car up for a small part is not really a reasonable thing to do and I would consider just paying what they wont cover.

Excellent story!   Thanks for posting it.  Now, can you tell me how to get off those same companies contact list?      Between my wife and I, we get about a dozen of these Spam Calls a week.

Rams   

Only a dozen ? You lucky dog !! between my wife , me , and my MIL I'd say closer to about 3 dozen a week (or more). I do not answer calls from NC unless the caller is in my phonebook any more - and almost all callers get added to the phone's block list for me.  Just saying if you want to call me - better text / email me first so I will answer...

[Robert]

Excellent story!   Thanks for posting it.  Now, can you tell me how to get off those same companies contact list?     Between my wife and I, we get about a dozen of these Spam Calls a week.

Rams  

Two ways seem to work, either block the number, which they will call back or waste the hell out of their time on the phone.  

I kept one company on the phone with all sorts of stupid tactics and in the end asked them who is this. "CLICK"   Haven't really heard from anyone since

IF you own an Iphone or I imagine Androids have it also you can use the option of anyone NOT listed in contacts is sent to voice mail. It silences the call and sends any call not recognized to voice mail which most will not leave a message or you can review and delete at your pleasure.

[Robert]

All contracts in life should be thoroughly read before signing.

If you don't understand it ask for a written explanation or simply walk away.

I wish it was that easy since they write this contract with all the things listed in a general way. List what they will do and how they do it, throw in some nice words. BS, blah blah blah and somewhere in there it may say something like what ever is not specifically listed is not covered. So the complete engine but not to repair the bearings or something like that. Its almost pointless to read since if they dont get you this way they will get you on the price of the parts or the deducible or its not a covered part. So many loop holes its like swiss cheese.

[Robert]

In a weak moment, I bought an extended warranty on my wife’s Camary from the dealer. The car was loaded with technology and I didn’t want to have to pay through the nose it they gave any trouble. Two years in and the car has been trouble free, and my wife totals the car. I decided to buy the car back and have it repaired. Once you do that you have zero warranty from the factory and I was able to get approximately 50% of my money back on the warranty I purchased. Really a win-win for me, wife wasn’t injured, insurance paid off well, no car payments (still owed for we more years), car has been trouble free for the past 3 years since being repaired.

As an added bonus, when they call me to sell me an extended warranty, I tell them, “Sign me up! I’ve been wanting an extended warranty ever since the car was totaled and they sent me a rebuilt title.” Click.......

Wow good for you since most will not give you back money.

[Jess from VA]

The very simple solution for me is to buy the best quality widget I can afford (maybe not the very best, but always good), and take whatever warranty they may provide, and NEVER buy any other warranty of any kind on anything.  Not from the manfr, or aftermarket.

Never once carried more than uninsured and liability (low) on any bike (even brand new).  And never sorry.

I carry more on cars only because you risk everything you own from liability lawyers on cars/trucks (but not bikes).

Last at-fault accident sometime in my teens or early twenties.

And I have not made a claim on auto insurance since my van was stolen in undergrad (except I think I did get a new windshield once).  No claim ever on renters or homeowners either.

Warranty is just another version of insurance.  Insurance is like playing poker; you bet (wager your money) you will screw up or something bad will happen to you, and you hope you lose every single wager.  One of the finest scams ever devised by humans (but unfortunately necessary).  

If I had a house full of kids and new drivers, I'd carry a sh!t-ton of insurance, and probably get a million dollar balloon coverage too.   If I had a houseful of kids, I'd need to be admitted to a lock down loony bin.  But that might be OK, since I have health insurance.  

Wife on phone:  How are you doing at the hospital honey?

Me:    Pretty good, nice and peaceful here, but the food sucks.  If the kids burn the house down or get arrested or get pregnant, do me a favor and don't tell me.  

 

[3fan4life]

Was really happy when one of these companies got their butt kicked in the same way they give it to their customers.

My friends Mercedes had transmission problems and he went to the dealer. They said the trans was bad due to water and would more than likely the water was coming from a bad radiator cooler. So the warrenty company authorized the trans but not the radiator. I told him and the dealership agreed to get that in writing and have it signed and dated. They got it all authorized signed and dated and the transmission finished and he took the car.

Less than 12 months later his transmission was exhibiting the same kind of problem. He brought it back to the dealer and sure enough the trans had gone bad from the cooler being bad again.

The warranty tried to get out of it and tried to pin it on the dealer but the dealer had done their homework  and had all the paperwork signed. So they presented it to the warranty company and they had to pay for the trans again along with the radiator.

Very seldom does it work this nicely for the customer and warranty companies should only be considered a discount most of the time.

Holding a car up for a small part is not really a reasonable thing to do and I would consider just paying what they wont cover.

Excellent story!   Thanks for posting it.  Now, can you tell me how to get off those same companies contact list?      Between my wife and I, we get about a dozen of these Spam Calls a week.

Rams   

Easy, tell them that your car is a 1996 Geo Metro with 350,000 miles and you'd love an extended warranty.

[cookiedough]

In a weak moment, I bought an extended warranty on my wife’s Camary from the dealer. The car was loaded with technology and I didn’t want to have to pay through the nose it they gave any trouble. Two years in and the car has been trouble free, and my wife totals the car. I decided to buy the car back and have it repaired. Once you do that you have zero warranty from the factory and I was able to get approximately 50% of my money back on the warranty I purchased. Really a win-win for me, wife wasn’t injured, insurance paid off well, no car payments (still owed for we more years), car has been trouble free for the past 3 years since being repaired.

As an added bonus, when they call me to sell me an extended warranty, I tell them, “Sign me up! I’ve been wanting an extended warranty ever since the car was totaled and they sent me a rebuilt title.” Click.......

Wow good for you since most will not give you back money.

The extended warranty should be pro-rated from date purchased as is normally the case.  I expect 50% back is about right depending on length of ext. warranty.   I once got suckered into a new car ext. warranty 8 year/100K or something like that for 1 grand.  After 2 years and around 30K miles tops, if that,  the engine failed under new car mfg warranty.  Got new engine, sold it, and ONLY got back about 500 of the 1K paid even though was still under 3/36K factory new car warranty.  So, I blew 500 bucks down the drain - NEVER AGAIN will I buy a new car or used car ext. warranty unless thrown in with the deal say on a used car which never happens more than say 3/3000 miles.  However,  CERTIFIED used vehicles meaning lower mileage say 2-4 year old vehicles do sometimes have a MUCH BETTER 10 year/100K 'supposedly' bumper to bumper warranty which I find odd getting a slightly used vehicle with a better warranty than a brand new car warranty.

[F6Dave]

Years ago I read in Consumer Reports that manufacturers pay out 17 cents in claims for every dollar they collect on extended warranty premiums.  No wonder they push them so hard when you buy a car.

Having said that, I've bought a few of them from Ford, Honda, and Kawasaki.  I have NEVER broken even on any of them.  The only reason I buy them is because when something goes wrong after the original warranty expires, I have this tendency to postpone having it fixed, thinking I'll get around to doing it myself.  With the warranty I drop it at the dealer and get it done ASAP.  Here are a few suggestions if you want to minimize the money you'll lose on a warranty:

• Buy the manufacturer's warranty.  They'll actually honor it without fighting a third party.  On my Fords problems were usually fixed in a day, and if they needed to keep the vehicle overnight they gave me a free rental.  With my Valks, I only had some minor parts fail that I replaced in the parking lot myself.  They actually replaced the chrome alternator cover under warranty because the finish was peeling!  I found that Honda dealers were always willing to have me replace simple parts myself at the dealership.  Maybe they charged Honda for the labor flat rate.
• Shop online for the best price.  There's a dealer in Minnesota that sells the Ford ESP warranties for cost plus $100.  It literally cuts the price in half.  I extended the warranty on my wife's Escape to 7 years (bumper to bumper with a $200 deductible) for $950.
• Higher deductible save lots of money.  It's the $5,000 engine or transmission I worry about, not the $400 axle seal.
• For a new vehicle or used one where the warranty is still in effect, don't buy it right away.  Just about every manufacturer lets you buy it up until the original is about to expire, and some let you buy it after expiration if you pay for an inspection.  You might decide not to keep the vehicle, or decide it's so reliable you'll never need coverage.

[old2soon]

     I'd asked bout this very thing couple months back. My cage falls within the years covered but at 182 G on the miles-not so much. And ++++ I Never called one of those outfits. If the engine or transmission pukes I'm done anywho. Guy about 40 miles east of me does mainly transmission repair/rebuild. On my 06 Grand Prix he quoted $2400-$2600 on a rebuild with His one year warranty-prorated. At that price just find another vehicle. New cage or M/C outa my financial comfort zone-A K A no how no way can I afford it!  RIDE SAFE.

[Patrick]

I still think for the time and hassle of trying to deal with one of those companies is just a royal PITA and the amount paid over the years for the policy goes a long way toward paying for any repair.

[cookiedough]

I still think for the time and hassle of trying to deal with one of those companies is just a royal PITA and the amount paid over the years for the policy goes a long way toward paying for any repair.

exactly, I agree why spend 1K or more for an ext. warranty you may or may not need to use ever? Much like life or  home insurance and in some cases medical/vehicle insurance.  I CRINGE EVERY single renewal paying out 1,000's for autos/cycles and home insurance with 5 autos for 4 drivers in the family (one of my kids will be paying me FINALLY out of college having a full time job FINALLY, or so I hope).  Just glad my home is one of the smallest/cheapest to insure in entire town but still WAY too high IMO.  I know a lot of homes nearby me near double the property tax amount paid and am sure double or triple per yearly home insurance premiums. 

Just think how many 1000's of dollars saved over say 30 years NEVER used ONCE on home, auto, medical insurance?  Well well over 200K for most I bet over 30 years of paying for insurance one never has used much at all besides maybe medical a few times.  Then again we all are paying for those like my ex-neighbor who goes see their Dr. over every single ache and pain they get and they be lucky his wife's employer pays 100% of the costs associated with going to the Dr. which is rare these days.  Most medical plans have a 1-5K deductible that must be met 1st BEFORE covering say 80% .

[Wizzard]

I bought a lincoln MKZ AWD with 20k on it. Dealer tried to sell me extended warranty. I declined. Then he said at least take the tire and wheel warranty for 600 bucks for the life of your ownership because they are low pro tires and if you ruin a tire and rim its 1200 bucks each. So I took it. Its my wife's car and to date she has ruined 4 tires and rims in several incidences. Each time they paid 100%. Best warranty I ever bought. I hate low pro tires. Takes very little pothole to ruin them.

[old2soon]

    If you can afford the extended warranty monthly gouge why not instead put that money in a savings account and either pay the repair bill yerself or build up the fund fer that vehicles replacement? RIDE SAFE.

[Jess from VA]

I bought a lincoln MKZ AWD with 20k on it. Dealer tried to sell me extended warranty. I declined. Then he said at least take the tire and wheel warranty for 600 bucks for the life of your ownership because they are low pro tires and if you ruin a tire and rim its 1200 bucks each. So I took it. Its my wife's car and to date she has ruined 4 tires and rims in several incidences. Each time they paid 100%. Best warranty I ever bought. I hate low pro tires. Takes very little pothole to ruin them.

My dad carried me on his insurance when I got my first car at 16 (back then, it didn't cost much).  But after I turned into Parnelli Jones with tickets and the rates went up, he kicked me off his policy and told me best of luck with your new insurance (which you will pay). 

Fast forward 35 years or so, I carried (and paid for) my wife on a joint policy for many years, but after she banged up her car five times (parking garage poles kept jumping out at her, and she actually hit a mail truck delivering mail) the rates went up hugely.  So I told her the story about my dad, and kicked her off my policy and said best of luck with your new insurance (which you will pay).  This didn't bother her too much until she began calling around and they gave her her new rates.   

Moral of this story.... she quit hitting things. 

[cookiedough]

I bought a lincoln MKZ AWD with 20k on it. Dealer tried to sell me extended warranty. I declined. Then he said at least take the tire and wheel warranty for 600 bucks for the life of your ownership because they are low pro tires and if you ruin a tire and rim its 1200 bucks each. So I took it. Its my wife's car and to date she has ruined 4 tires and rims in several incidences. Each time they paid 100%. Best warranty I ever bought. I hate low pro tires. Takes very little pothole to ruin them.

My dad carried me on his insurance when I got my first car at 16 (back then, it didn't cost much).  But after I turned into Parnelli Jones with tickets and the rates went up, he kicked me off his policy and told me best of luck with your new insurance (which you will pay). 

Fast forward 35 years or so, I carried (and paid for) my wife on a joint policy for many years, but after she banged up her car five times (parking garage poles kept jumping out at her, and she actually hit a mail truck delivering mail) the rates went up hugely.  So I told her the story about my dad, and kicked her off my policy and said best of luck with your new insurance (which you will pay).  This didn't bother her too much until she began calling around and they gave her her new rates.   

Moral of this story.... she quit hitting things. 

do i dare ask,  are you still married to that wife?     I think if I threatened to kick my wife off our 5 vehicles (2 are for kids) insurance policy,  she would divorce me am sure.    Although I tried to convince her A TON as said about LOW profile tires suck when she got her new SUV me wanting the lower grade NON Sport pkg that had normal 18 inch rims/tires vs. 19 inch low profile tires/rims.  The Michelin 19 inch oddball sized tires are 80 bucks more per tire and actually LESS mileage out of them by far vs. 18 inch normal sized tires.    Biggest thing day in and day out is the ride quality sucks with low profile rims jarring effect due to less rubber/more rim and we all know rims do NOT flex unlike rubber in tires.  NEW OEM Michelin tread is ONLY 9/32" where as all 18 inch NON low profile tires NEW have 11 or 12/32" new tread.  IN ONLY 15K miles the treadwear is down to ONLY 6/32" and that is horrible IMO about 1/2 shot already will need new 19 inch expensive tires at say around 36K miles is all.

[Jess from VA]

do i dare ask,  are you still married to that wife?

Technically yes, for one particular business reason (not taxes), but the 22 page property settlement has been signed, sworn, paid and final for 12 years.  And she lives somewhere else.

But from day one, we both worked, we kept separate finances, and banks, and accounts and cards, and sat down and agreed on all joint expenditures.  And I kicked her off my insurance (it was mine for many years before she was added), years before the war.  I was not a prick about it; I put up with 5-7 accidents and rate increases before I cut her loose (and warned her plenty).  Business is business.

We get along OK, as long as we don't live together.  (She got all the cats   )

You'll notice, no company in existence offers warranties on marriages, because they are not complete idiots.  

[scooperhsd]

do i dare ask,  are you still married to that wife?

Technically yes, for one particular business reason (not taxes), but the 22 page property settlement has been signed, sworn, paid and final for 12 years.  And she lives somewhere else.

But from day one, we both worked, we kept separate finances, and banks, and accounts and cards, and sat down and agreed on all joint expenditures.  And I kicked her off my insurance (it was mine for many years before she was added), years before the war.  I was not a prick about it; I put up with 5-7 accidents and rate increases before I cut her loose (and warned her plenty).  Business is business.

We get along OK, as long as we don't live together.  (She got all the cats   )

You'll notice, no company in existence offers warranties on marriages, because they are not complete idiots. 

That's why you have to find a good one on your own .