Dealership Warranties

[Whoaru99]

All well and good, but facts are the policy isn't paying out $7k-$10K in claims very often for a buy-in of $2K.

While not automotive, mebby I'll do a bit of digging on what our "extended warranty" numbers look like just for kicks. The pay in vs. pay out numbers, that is.

[SkunkedAgain]

Great info Shack. It makes me feel better about the 3/36,000 warranty that ran out on my Ranger!

[Ufatz]

Well, as I said way up above.....the first thing you check is WHO is actually making the Warranty. If you cannot get a straight answer to that question DO NOT BUY the piece of paper they are waving at you.

Good As Gold Warranty Service in Shaftum, New Jersey ain't gonna be there when you need 'em.

Proceed with caution.

[spearchucker]

Clarification: my warranty was factory dodge extended warranty, not a third party program. a truck fixing acct would be great until you need some extra cash and then why would that acct lets say if you have not touched it in 4 yrs you think ah i have not used it this long ill start dipping into it. then guess what then the truck fixing acct is gone and you are trying to find money to fix something that you could have paid for years ago. I can say that my extended warranty paid for itself. i had a 25 dollar deductible each time i took it in. I can tell you that having the carpet replaced, the door seals, all the pulleys, water pump, alt, ac work, and other things repaired cost me 2300 bucks up front and 225 dollars total for all the repairs I had done. No one can tell me that the work that I have had completed would have been done for less than 2500 bucks, plus had a rental vehicle on the ext warranty each time. you are going to have to work pretty hard to change my mind.

And if all of that stuff wouldn't have gone out, then you would be out $2300. It is always a gamble. Unless the warranty is cheap enough with decent coverage, I pass. You are pretty much paying for repairs even if they are not needed. I feel that you are better off saving some money for repairs or even getting a small loan or credit card the repair if needed.

[Shack]

All well and good, but facts are the policy isn't paying out $7k-$10K in claims very often for a buy-in of $2K.

While not automotive, mebby I'll do a bit of digging on what our "extended warranty" numbers look like just for kicks. The pay in vs. pay out numbers, that is.

That is the contract "cap". After market, depending on the plan purchased, is going to have a lower cap than a manufactures warranty. CSC's, depending on the type of contract had a $10,000-$15,000 cap. Most of your aftermarkets (paying the same price) will have a cap of $5000-$7000.

Back in the day, not matter what make, Chrysler Service Contracts (CSC's) were the best for getting coverage with no maintenance history (majority of the aftermarket warranties will require you to provide maintenance records before a major repair is authorized. If you can produce the, then the claim is denied.) asked for and run the part number and it was approved. The purchase price was very reasonable also.

You can get a Chrysler contract on a Ford or Toyota or vise versa.

From the automotive repair perspective, I would prefer new and use car customers to "NOT" purchase extended warranties. The service center/department gets hoses in many ways.

One, we never see any of the profit from the original sale of the contract.

For two, it takes a bunch of time for the Advisor to set the claim up, get the inspection done, call the company at least 3-4 times at 10 minutes a crack, then to have them dictate what labor times they are going to use and how much they will pay. Then argue with the tech about the time he is getting shorted on and then have an upset customer because the salesman at the dealer they purchased the car from said "Bumper to Bumper".

They are a hassle and always pay less than the repairs warrant.

Personally I liked the straight customer pay repairs myself. I made more commission and was able to spend more of my day helping customer waiting in the isle instead of apologizing for a wait because I was one the phone with an extended warranty company for 15 minutes while they waited. If you did not get the call done, the tech would be waiting to do the repairs while not working on something, thus holding other customers vehicles up.

I would always agree with "I don't need those hokey warranties". They more I remember back, the more I remember how much they sucked.

But they are work and most are good to work with. Some are a horrible pain.

Big, big note here!!!!!!!!!!!!!!!!!!!!!

Most contacts will provide a portion of the original contact purchase price back if a claim is never made or claims do not exceed over a certain dollar amount. CSC's if not used would bring almost half the price back of the purchase price. This is one part of the contract the people who "read" their contracts seem to miss most of the time. They will never contact you, you have to contact them and there is a time period after the contract ends to do so.

Another tip for you HSO cars guys. You might have cash sitting in the glove box right now you have no clue about. Give them a call.

[Shack]

All well and good, but facts are the policy isn't paying out $7k-$10K in claims very often for a buy-in of $2K.

While not automotive, mebby I'll do a bit of digging on what our "extended warranty" numbers look like just for kicks. The pay in vs. pay out numbers, that is.

No Whoaru99, but I always wished they were. If they didn't, then the customer paid the rest. If I could get something covered, I would try my best. I had to call them anyways and I did feel the customer purchased something they are entitled to and they should pay if they have to.