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Smart Shopper Extended Warranties
2873 messages, Last post on Dec 02, 2009 at 2:13 PM
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Edmunds article: Third-Party Extended Warranty Scams
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I believe you are able to purchase a GMPP as long as the original, factory warranty is still in effect. If I recall correctly, that means that you can buy a 7yr/100K-mile warranty up to 36 months after your purchase or up to 35,999 miles driven. You aren't required to buy the GMPP when you first purchase the vehicle. That would make the first three years and 36,000 miles pointless. I'll go look for confirmation because warranty work isn't my department at work, but I'm pretty sure.
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is a cheaper price (negotiated with the dealer at your best price vs buying from GM on a menu (retail) price) and rental car coverage through the basic warranty.
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It also allows you to finance the contract into your car loan if you don't have the cash or credit card space available. Pre-Daimler, Chrysler Financial would discount financing rates if you also bought a Chrysler service contract up front and added it in with the loan. Saved me 2 full points in 1996, don't know if CFC still does it now. kcram Host Smart Shopper and FWI Message Boards |
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| Would you then recommend not buying an extended warranty if if unable to get it OEM? | |
| you'd be better off taking the money you would spend and put it in savings in case of a breakdown. | |
| After reading through the info here and reading a few third party contracts, I will be doing just that! | |
I have read some of the advice offered by so called experts, and I wish people were telling the whole truths. 1st) All "extended warranties/service contracts" are backed by some form of insurance, whether the its a TPA or a factory plan. 2nd) The difference between TPA's and Risk Retention Groups (ie, National Warranty Inc, Capital Assurance, etc) is that reputable companies have fully insured contracts that absolutley OBLIGATE the administrator to pay claims on the contracted vehicle. 3rd) More often prices from reputable TPA companies are close in price to factory plans, and even can offer more benefits (ie. roadside assistance, trip interuption reimbursement,etc.). I would expect that those who claim to lead discussions or have expertise give proper information. If the company is reputable, financially solvent, and has a good claims history, you will have the same piece of mind if it was covered by the factory!
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These private companies are under no obligation to comply with the Magnusson-Moss Warranty Improvement Act. None at all. Without that compliance, you have no "warranty" - you have no legal recourse, at all, if a claim is denied, if they use "used" parts (happens all the time) or if your legal issues are tied into a lemon law/breach of warranty claim. They are insurance policies, set by their own rules, and if they don't take care of you, you have NO recourse. Before you get any more disrespectful, please understand that my whole job is reviewing breach of warranty and warranty compliance cases in 3 states and at the Federal level. Additionally, most private "warranty" companies aren't signed up with many dealers, so the dealer has to jump through hoops just to get your claim handled. Doesn't bode well, if you expect to in the front of the line. |
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Not being disrespectful, just explaining the facts. There is no such thing as an "Extended WARRANTY". By law Mag/Moss, no retailer or TPA can "extend a warranty". Whether a customer purchases a factory program or a TPA program, they are only buying a "SERVICE" agreement/contract. The industry term of "Warranty" is used in- correctly. And as you know, "Warranties" can not be sold to customers, only "Tie in" service agreements", which by the way are covered and protected under magnusson moss act. Product, or Merchant warranties, offered to customers, in conjunction with buying a, vehicle are at no charge to the customer. As for the "service agreements", these agreements spell out in the defined contract language, all that is covered, all types of parts, limits of liability, what the owner is entitled to for benefit and recourse, what INSURANCE company is backing the obligations of the administrator, and whom, within in their state to contact if claims are not handled according to the service agreement. Now companies of RRG (NWIC) backing do not have any compliance to these laws in which Federally and Nationally filed and approved Insurance programs offer. I have seen GMAC/Chrysler/and Ford use parts replacement with language stating "like, Kind and Quality" = Used or Remanufactured parts. Now I am now discrediting your "expertise", using the term "warranty" incorrectly, and making false statements does not bode well for dealers and Service Contract companies who present/offer/and fulfill their coverage obligations. My credentials are on a national basis, both Federal, State, and International jurisdiction. I work with the Factory Programs, and 9 major Independent Service contract Providers. And By the way...Out of the 24,000+ Franchise dealers in the US, 75% have both Independent and Factory "SERVICE CONTRACTS" being offered by their finance representatives. Again Fact vs. Fiction... Please be honest to the people who use this site for resource purposes. |
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