Last post on Oct 03, 2013 at 9:11 AM
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#3163 of 3172 Re: Carmax warranty ? [bekins2]
Jul 24, 2013 (1:10 pm)
You people have no idea what you're talking about. When you purchase a vehicle from a dealership it's unlikely the problem, if there is one, is with the "warranty company". Mitzi is the only one whose statements are at all accurate.
Pretty much every company will offer a variety of contracts depending on the age and mileage on the vehicle. This allows you, the consumer, to decide if you want to spend MORE money and have MORE coverage or spend LESS money but get LESS coverage.
The problem is that people select the low end contracts and the get angry because they don't cover an item that fails on their vehicle. They refuse to spend the time necessary understanding what is and isn't covered before they make the purchase decision. If a company offers 5 different contracts and you choose the lowest level of coverage then it's YOUR fault if it doesn't cover what you wanted it to. READ the coverage and stop letting a finance person tell you it's "bumper to bumper". Outside the manufacturer's base warranty, and there are exclusions in that as well, there is no "bumper to bumper" coverage.
Companies fail everyday, that's a fact of life. But to try to claim every 3rd party, or aftermarket, warranty company is a ripoff is just stupid. If you purchase a plan on your vehicle based on a phone call, email or card in the mail and that company has done nothing to verify that your used/high mileage vehicle is in good shape you're just asking to be ripped off! Quit trying to blame the company for your lack of understanding your contract and your failure to know what you are buying. If you want a lot of coverage then buy their best available warranty.
Most have 2 different types of coverage. One is what is known as "stated component" coverage or contracts. This means to be covered the failed component MUST BE SPECIFICALLY NAMED IN THE CONTRACT to be covered. The other is an "exclusionary contract" which means if a failed component is not EXCLUDED in the contract then, barring a condition or cause of failure that is excluded (lack of maintenance, damage or modification), then it is covered.
KNOW WHAT YOU ARE BUYING!!!!
#3164 of 3172 Re: Carmax warranty ? [txfatboy]
Jul 24, 2013 (1:47 pm)
Interesting sales pitch. Doesn't agree with what other (non-sales-related) studies have found. The industry has lots of problems. All of them? No, but enough to make it not worth the expense for something that, on average, is GUARANTEED to cost more than one get in benefits.
Here's what Consumer Reports had to say:
"Don’t purchase an extended warranty on a car with a good reliability record. In a 2008 CR survey, 65 percent of respondents said they spent much more for the contract than they got back in savings on repairs."
And here's what Car and Driver said:
"The TV commercials are slick and convincing: Buy a “service contract” for your out-of-factory-warranty vehicle—even if it has more than 200,000 miles on it—and never face repair bills again.
Too good to be true? Probably. Three principal companies that sell these extended warranties—US Fidelis (the largest), Mogi, and StopRepairBills.com—as well as about 35 others, operate in the St. Louis area. All have websites, but business is conducted only by phone, with salespeople paid by commission, working from a script.
Illegal? Probably not, but Michelle Corey, head of the St. Louis Better Business Bureau, says the sheer volume and ongoing complaint patterns involving industry giant US Fidelis, as well as complaints against numerous other St. Louis–area extended-vehicle-service-contract companies, are “nothing short of astonishing.”
“We continuously are receiving reports from consumers saying they have been pressured or misled into buying warranty contracts they either don’t want or don’t need, or have been left holding the bag when the claim-processing company refuses to pay for costly repairs,” she says. US Fidelis, as well as Mogi and StopRepairBills.com, has an “F” grade with the St. Louis BBB, the lowest possible."
Like I said, too many bad apples in that barrel.
#3165 of 3172 Re: Carmax warranty ? [txfatboy]
Jul 25, 2013 (3:16 am)
Actually, the "experts" strongly advise against buying any extended coverage except from the OEM. Pretty much every third party company which sells extended automobile service contracts is simply a risky bet. As an example, let us all recall Rusty Wallace and US Fidelis, among others.
And truly, people are justified in blaming both the service contract company and the dealer for a bad service contract. Both engage in highly deceptive practices which often staddle the legal limits to entice customers to spend thousands for a product which is designed to be of limited value.
Those third party companies design their plan descritions to confuse unsuspecting customers. They provide pretty summaries in large print which give the appearance the plan covers more than it actually covers. They hide the specifics within the small print and technical wording which they know will not be read or understood by most people.
Automobile finance managers who lurk in the F&I office are complicit as well. They present themselves as the customers advocate in the dealership and design presentations, often with props and records, to entice customers to buy various products at exaggerated prices. The work hard to limit the amount of time the customer has to review the service contract verbiage. They focus the customer to the large print while ignoring the details, where the gremlins lurk. Their focus is mostly on the huge commission they receive from each service contract sold. Such focus rarely results in a postive outcome for the customer.
Certainly it is true many companies fail. However, most of those companies have not sold future service contracts to customers for thousands. Clearly a consumer must be far more vigilant as to the long term prospects of a service provider than with their local hardware store. Ask anyone who bought a service contract base on Rusty Wallace's recommendation.
The best advice anyone can give regarding an automobile extended service contract is do not buy one. Today's vehicles are generally well designed with few problems which would be covered by any extended service contract. Instead buy a vehicle with a solid reliability record. Put the money that would be spent for an overpriced extended service contract in an interest bearing account. That way it is there if you need it. Better yet, it is there and not in the pocket of the service contract company or F&I manager if you never have a repair.
And remember, any time you buy a product in the F&I office a large amount of the money you pay is simply going into the pocket of that smiling F&I manager sitting across the desk. The money the F&I manager made during your half hour visit is the reason for that smile.
#3166 of 3172 Re: Carmax warranty ? [karhill1]
Jul 25, 2013 (5:41 am)
There are no "experts" when it comes to making a blanket statement that covers everyone's needs. There are advantages to buying OEM and there are disadvantages. There are advantages to buying aftermarket service contracts. Your advice to not buy one is just as stupid as saying only buy OEM. THOUSANDS AND THOUSANDS of dollars are paid out daily by these companies for repairs that would otherwise have been paid for by individuals.
Ask someone who has had a catastrophic engine or transmission failure or an a/c system that's wiped out if their contract was worth it. But it's not just those problems. There are plenty of vehicles that have never had transmission or engine problems but have electrical, suspension and numerous other issues that MORE than pay for their plan. Obviously the idea is for the contract to pay out less than the money they take in, it's a BUSINESS! If you have enough money to cover repairs if needed without breaking the bank then don't buy one. Unfortunately, most people buy more car than they can afford and can't properly maintain their vehicle let alone pay for repairs.
The bottom line is KNOW what you are buying. Don't let someone tell you "it covers everything" without having them show you where it says that in the contract. And try paying attention when they are going over the coverage and ASK QUESTIONS and make them show you where your question is answered in the contract.
#3167 of 3172 Re: Carmax warranty ? [texases]
Jul 25, 2013 (5:54 am)
I'm not sure that you read my statement previously. I plainly stated that it is a bad idea to purchase a contract on a vehicle from someone who is willing to sell that contract without verifying the condition of the vehicle.
Even cars with good reliability track records can have failures. They may or may not be the high dollar transmission or engine failures, but having window motors go out at Christmas time, or an a/c that quits working just as you're planning your drive to Florida for vacation can put a major kink in your plans. But, if you have the money to fix repairs IF they occur without breaking the bank then don't buy a contract.
Honda has long been considered a very reliable vehicle. Ask some service people who have worked for Honda about the "black death" on a/c systems a few years ago. Extremely expensive and NOT covered by Honda after the warranty period and it rarely occurred DURING the base warranty period.
I would definitely recommend buying only through a dealership. The companies who are shady operators won't last long because its too damaging to the dealerships reputation. And research the company before you buy. If you are ONLY going to have your vehicle repaired at a factory dealership then maybe you should by the OEM contract, though this isn't possible if you purchase a pre-owned Honda from a Chevy dealer. Also, if you're traveling and aren't near a dealership or they can't get to your vehicle for a few days with the OEM contract you cannot take it to an independent shop, with aftermarket you can.
Again, it's a BAD IDEA to make blanket statements about most anything.
#3168 of 3172 geico mechanical breakdown
Sep 23, 2013 (4:20 am)
I just leased a new volvo for 2 years and to my surprise, geico automatically put on this mechanical breakdown insurance, which cost $55 for 6 mos. Is there any reason why i would need this? Not only is there a full warranty but volvo has emergency road service and towing with the car.
#3169 of 3172 Re: geico mechanical breakdown [gpb59]
Sep 23, 2013 (6:05 am)
I can't think of why you'd need that on a brand new car with factory coverage. I'd have it taken off my policy.
#3170 of 3172 Re: geico mechanical breakdown [texases]
Sep 23, 2013 (6:40 am)
Thanks, that's what I thought, just wanted to make sure I wasn't missing something
#3171 of 3172 Re: Carmax warranty ? [karhill1]
Sep 23, 2013 (4:19 pm)
I have a slightly different angle on extended service contracts....Its more related to the individuals personal financial situation. (Assuming you will keep the car beyond the factory warranty)... If you can afford to self insure and inking an unexpected check for $2000-5000 isn't a big deal then skip the warranty. The odds are with you. OTOH, if this would be a huge financial hardship then your probably better off getting the warranty.
Another thing to consider...those who can afford to self insure generally follow the routine maint. schedule like clockwork. Folks with limited funds rarely do "everything" that should be done on the MFG schedule. Thus compromising the reliability of the vehicle in the long run. Now that so many car companies are using turbo's I can't wait to see the related problems by poor maintenance. I also make sure the electronics are covered, because they are really expensive to replace!!
Of course, Ive never had anyone who had a big service bill paid by warranty every tell me they were sorry they purchased the extended warranty. LOL
#3172 of 3172 Extended Warranty
Oct 03, 2013 (9:11 am)
Here is my experience for what it is worth...
In January of 2010 I purchased a 2008 Buick Enclave with 58,000 miles. The original warranty on the car was 36,000/3 years. So, it was already out of warranty. Since this was the most expensive vehicle I have ever purchased, I was looking for some peace-of-mind. I purchased an extended warranty from the dealer at a cost of around $1500. In my case, I am glad I did.
I purchased the 2008 Buick Enclave due to my large family and the need to have an eight passenger car that would actually fit in my garage. About six months after my purchase, things went south on this vehicle. I found out that this model year of the Enclave was plagued with issues and I was experiencing many of the same issues other 2008 Enclave owners had experienced. Everything from issues with the power steering, leaking timing chain housing, bad idler arms, leaking sunroofs, leaking rear transfer case (all-wheel-drive), leaking water pump. The prize winner was when the transmission went out just before 80,000 miles (again this was a common issue due to a failed part called the 3-5-R wave plate).
The extended warranty I purchased was a "Bumper-to-Bumper" warranty from Zurich. I read the warranty from beginning to end before I agreed to purchase the car and the warranty. The warranty was very specific about what was covered and what items were not. Long-story-short, the Zurich warranty covered every failed item listed in my previous paragraph, including the transmission. I took my vehicle back to the dealer I bought it from for all repairs. To this date, I have paid approximately $500 in out of pocket costs for these repairs. Each incident is a $100 out of pocket deductible. The bills for these repairs has exceeded $9000...the transmission was $5500 alone. Zurich has covered all the repairs without hesitation.
I guess I must be one of the "lucky" ones that actually had the investment in a warranty pay off.