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Extended Warranties

3162 messages,  Last post on May 05, 2013 at 1:31 PM

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What is this discussion about? Car Warranties

Messages Page 317 of 317

#3154 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [jmardi] by texases

Mar 28, 2013 (10:25 am)

The price may have little to do with the value. No way to tell if the one you find will actually pay up.

#3156 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [suzyr] by texases

Apr 08, 2013 (12:57 pm)

What I said was the only one worth getting is the factory-backed warranty (Ford, GM, etc.). I would not buy anything else, if I was to buy one.
But I won't, they're not worth the cost on average.

#3157 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [spikael] by ken117

Apr 10, 2013 (3:32 am)

Replying to: spikael (Mar 27, 2013 10:52 am)
An extended service contract (aka extended warranty) on a vehicle with 78,000 miles has got to be riddled with exclusions. Best to read the contract completely.
 
Probably be better to skip the extended service contract and use the money to buy a vehicle with less mileage. Can not think of a valid excuse to justify spending $3,800 for a contract which is most likely useless. Not sure about you, but I can think of a lot better ways to spend $3,800.

#3158 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [ken117] by karhill1

Apr 11, 2013 (3:12 am)

Replying to: ken117 (Apr 10, 2013 3:32 am)
And we should not forget that probably $1,900 of that $3,800 is dealer profit.

#3159 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [ken117] by suzyr

Apr 11, 2013 (9:40 am)

Replying to: ken117 (Apr 10, 2013 3:32 am)
$3,800 is too expensive, i know that the price can be negotiated. Some people say that they were able to drop the price by 1.5 - 2K. Dealers are usually very pushy and want to sell the warranty to you, if they don't want to drop the price, just go to a 3rd party and get it cheaper from them. But make sure you pick a trustworthy company that "has been around for a while."

#3160 of 3162 Re: Vehicle Protection Service Plan (Mopar/Chrysler) [suzyr] by ken117

Apr 24, 2013 (4:20 am)

Replying to: suzyr (Apr 11, 2013 9:40 am)
There are three concerns with an extended service contract.
 
First is obviously the price dealers attempt to charge. The contact probably costs the dealer $900 or so for a five year contract. The dealer will attempt to sell this to a buyer for $2,000 or more. I doubt many people would be happy with a dealer making more than 100% profit. After all those same buyers probably spent hours dickering over 5% profit on the vehicle itself.
 
Second is the limited length of the contract. A five year contract is really only for two years, one in some cases. Is it really smart to spend $2,000 for twenty-four months of coverage? Most likely a person would be better served to assume there will be no covered repairs during that period which would cost more than the cost of the contract. After all the contract is priced that way. If the service contract provider sells the contract to the dealer for $900, that provider is certain the amount it pays out on average will be far less than $900.
 
Third is the small print, which is always available for the contract provider to use not to pay. Example, the covered component failed because he noncovered component failed so, sorry, not covered.
 
If a service contract is desired, it should only be bought from the OEM. All third party contracts are inherently risky. Also, the contract should be bought after the purchase from a different dealer. The dealer selling the vehicle is counting on the convenience of adding the contract to the financing. This will almost always result in a person paying far too much for the contract.
 
Finally, as with the service contract, any F&I product kindly offered by the F&I manager is overpriced, can be purchased elsewhere for a fraction of the price, and is usually useless. And really, what does an F&I manager actually manage? It is the dealer's profit.
 
Any interested in the F&I goals of a dealership should research on the web. The man behind the curtain will be revealed.

#3161 of 3162 in the news by Stever@Edmunds HOST

May 03, 2013 (8:26 am)

"The Consumer Financial Protection Bureau has issued subpoenas to U.S. auto lenders over the sale of extended warranties and other financial products, according to people familiar with the investigation, expanding a civil probe that lenders say could slow the booming car-loan industry.
 
Add-on products, such as extra insurance, are a popular mechanism used by car dealers to boost profits.
 
Though such products are legal, regulators are probing whether terms and prices are adequately disclosed.
 
The Justice Department, meanwhile, is probing auto dealerships that make their own loans to customers with poor credit and charge higher rates."
 
Regulators Scrutinize Auto Lenders Over Add-Ons (Wall St. Journal - you may have to do a net search for the story if the WSJ link won't open for you)

#3162 of 3162 Re: I asked [skyfan1] by jipster

May 05, 2013 (1:31 pm)

Replying to: skyfan1 (Mar 13, 2013 3:39 pm)
Yes on extended warranty. Altimas are reliable, so I'd pass.

Messages Page 317 of 317

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