While in a waiting room I read a short but interesting article concerning an extended warranty problem submitted from a reader (this is an RV type magazine.) Long story short, it seems that many of these warranties have small print which requires that the policy holder use only their lubricants or the warranty is void. Seems the individual found this out too late and that the "required" lubricants are only available from a limited number of sellers (private labeled products and comparatively expensive.) Just another rip-off of the consumer.
Extended Warranty Article
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My experience is that extended warranties extend the profit of the party selling it to you.
John
John
I have bought extended warranties. But I negotiated the price. I bought it for considerably less than they were originally asking.
Extended warranties are a [censored] shoot at best. Bought one for our 2001 Ford Sport Trac based on issues that Ford had. They were doing warranty work right up to the day the warranty expired. Didn't on the 2007 Jeep Liberty based on reliability ratings and so far so good. Search the internet for deals on factory warranties. I got a 6 year, 75K warranty from a Ford dealer in Iowa for 50% less than the local dealer in MI quoted me.
Originally Posted By: rshaw125
I have bought extended warranties. But I negotiated the price. I bought it for considerably less than they were originally asking.
Same here. And it was a GM Protection Plan warranty which simply extends the original warranty.
I have bought extended warranties. But I negotiated the price. I bought it for considerably less than they were originally asking.
Same here. And it was a GM Protection Plan warranty which simply extends the original warranty.
Originally Posted By: barlowc
Originally Posted By: rshaw125
I have bought extended warranties. But I negotiated the price. I bought it for considerably less than they were originally asking.
Same here. And it was a GM Protection Plan warranty which simply extends the original warranty.
Same here, I got the GMPP on my Corvette for about 60% of list price, same for the Acura extended warranty on my wife's Acura.
Originally Posted By: rshaw125
I have bought extended warranties. But I negotiated the price. I bought it for considerably less than they were originally asking.
Same here. And it was a GM Protection Plan warranty which simply extends the original warranty.
Same here, I got the GMPP on my Corvette for about 60% of list price, same for the Acura extended warranty on my wife's Acura.
Extended warranties are a misnomer, they are really service contracts/insurance policy.
The oem does not issue them. For instance GM Protection Plan is insurance policy underwritten by GMAC Insurance, not General Motors, LLC as many believe.
The oem does not issue them. For instance GM Protection Plan is insurance policy underwritten by GMAC Insurance, not General Motors, LLC as many believe.
Originally Posted By: Mike_dup1
Extended warranties are a misnomer, they are really service contracts/insurance policy.
The oem does not issue them. For instance GM Protection Plan is insurance policy underwritten by GMAC Insurance, not General Motors, LLC as many believe.
You are 100% correct, however, from the consumer viewpoint it looks like they are the same and usually feels and smells like they are the same.
One big difference is that extended "warranties" aren't governed by the much miss-quoted and over rated MM act so the service contract can have stricter terms than the original warranty. That is the reason that when I do buy an extended "warranty" I stick with the one with the car companies name on it. They are less likely to go out of business or just plain stick it to a customer than a brand-x policy is.
Extended warranties are a misnomer, they are really service contracts/insurance policy.
The oem does not issue them. For instance GM Protection Plan is insurance policy underwritten by GMAC Insurance, not General Motors, LLC as many believe.
You are 100% correct, however, from the consumer viewpoint it looks like they are the same and usually feels and smells like they are the same.
One big difference is that extended "warranties" aren't governed by the much miss-quoted and over rated MM act so the service contract can have stricter terms than the original warranty. That is the reason that when I do buy an extended "warranty" I stick with the one with the car companies name on it. They are less likely to go out of business or just plain stick it to a customer than a brand-x policy is.
Some of these contracts are like ponzi schemes. Many are on the verge of failure. If you pay $1500 for a repair contract and it falls threw it ends up costing you dearly. I am not a fan of these contracts.
Originally Posted By: willix
Some of these contracts are like ponzi schemes. Many are on the verge of failure. If you pay $1500 for a repair contract and it falls threw it ends up costing you dearly. I am not a fan of these contracts.
Very true. I made this mistake with my wife's Sebring Conv. which was going off of its factory warranty. I purchased the "official" Chrysler extended warranty & was told that it merely extends the existing policy. True, but with one critical exception: The ext. warranty covers parts and labor with a deductible, but (critical) does not cover diagnosis of the problem by the dealer. Hence (as I learned the hard way with 2 separate problems) it is not in the interest of the dealer to spend much time tracing the problem.
Some of these contracts are like ponzi schemes. Many are on the verge of failure. If you pay $1500 for a repair contract and it falls threw it ends up costing you dearly. I am not a fan of these contracts.
Very true. I made this mistake with my wife's Sebring Conv. which was going off of its factory warranty. I purchased the "official" Chrysler extended warranty & was told that it merely extends the existing policy. True, but with one critical exception: The ext. warranty covers parts and labor with a deductible, but (critical) does not cover diagnosis of the problem by the dealer. Hence (as I learned the hard way with 2 separate problems) it is not in the interest of the dealer to spend much time tracing the problem.
A lot of extended warranties do not pay diagnostic time.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
I briefly worked for a service contract company. Cured me of ever wanting to get one myself. The company I worked for contracted with the Hyundai dealership networks back when they were very problematic cars. When the burden got too much (those cars were dying like flies), they went out of biz, leaving lots of people shafted. We walked in one morning, started work, were then told to clear our personal stuff from our desks, called into the meeting room, given our final checks and marched out of the building, leaving hundreds of phones ringing off the hook and half filled out paperwork on the desks. The core owners then started another service contract company under another name. Nice folks.
Yeah my wife bought the GMPP plan for about $2k for her 03 Grand Am GT R/A. When it came time to bring it to the dealer for an issue she had to pay out of pocket first, then GM would "reimburse" her. Biggest waste of money since she didn't want the inconvenience of paying for it and bought it thinking it would be the same as normal warranty(which is how the guy explained it).
I've never bought into extended warranty for anything! Computers, Printers or any electronics, NO NO NO(helps I am a tech), but printers aren't worth more than the ink cartridges themselves. Once a printer is dead, buy a new one. They are disposable, unless you go in the higher end.
I've never bought into extended warranty for anything! Computers, Printers or any electronics, NO NO NO(helps I am a tech), but printers aren't worth more than the ink cartridges themselves. Once a printer is dead, buy a new one. They are disposable, unless you go in the higher end.
When my wife and I bought our first house, I checked the price on extended warranty/service plans than ran a spreadsheet that tracked the costs I wasn't paying. That amount went into a savings account. After a few years it became apparent that the money I was saving by not buying service plans would not only take care of repair costs but allow me to buy replacement appliance forever.
One of the few service plans I have bought is a GMPP for my 2006 Corvette (that was before the GM 100k powertrain warranty). I got 4 additional years coverage for about $1100. If you shop around you can get a GMPP for about 50-60% of list price.
The probability of that car requiring at least $1100 of covered repair work in years 4 through 7 is high. OTOH, if I have zero claims I will be deliriously happy that I didn't have to deal with the dealer or GMPP
One of the few service plans I have bought is a GMPP for my 2006 Corvette (that was before the GM 100k powertrain warranty). I got 4 additional years coverage for about $1100. If you shop around you can get a GMPP for about 50-60% of list price.
The probability of that car requiring at least $1100 of covered repair work in years 4 through 7 is high. OTOH, if I have zero claims I will be deliriously happy that I didn't have to deal with the dealer or GMPP
I really hate extended warranties. However, I purchased a powertrain warranty on my last Ford F150 and my Current F150.
The reason, my wife drives the truck and she is on-off-on the gas while on a flat straight highway. Causing the transmission to shift hundreds of times. I once counted 126 shifts in a 20 mile stretch!
Needless to say, the transmissions don't last at my house.
The reason, my wife drives the truck and she is on-off-on the gas while on a flat straight highway. Causing the transmission to shift hundreds of times. I once counted 126 shifts in a 20 mile stretch!
Needless to say, the transmissions don't last at my house.
Originally Posted By: The Critic
A lot of extended warranties do not pay diagnostic time.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
How the heck can a power steering hose cost $600!!!!
A lot of extended warranties do not pay diagnostic time.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
How the heck can a power steering hose cost $600!!!!
Originally Posted By: PandaBear
Originally Posted By: The Critic
A lot of extended warranties do not pay diagnostic time.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
How the heck can a power steering hose cost $600!!!!
Power steering high pressure hose for a Murano costs about $600 parts and labor. Hose is pretty expensive, about $250 IIRC.
Originally Posted By: The Critic
A lot of extended warranties do not pay diagnostic time.
I have also noticed that a number of extended warranties do not cover belts and hoses. Sure, they may sound like wear items, but when the $600 high-pressure Power Steering hose fails then you're SOL.
How the heck can a power steering hose cost $600!!!!
Power steering high pressure hose for a Murano costs about $600 parts and labor. Hose is pretty expensive, about $250 IIRC.
Originally Posted By: The Critic
Power steering high pressure hose for a Murano costs about $600 parts and labor. Hose is pretty expensive, about $250 IIRC.
Well, that's a $250 hose then, not $600. It's still a newer design and when it is older, out of warranty, start having problems, the after market will show up and drop the price.
FYI a typical power steering hose (high pressure) cost about $30.
Power steering high pressure hose for a Murano costs about $600 parts and labor. Hose is pretty expensive, about $250 IIRC.
Well, that's a $250 hose then, not $600. It's still a newer design and when it is older, out of warranty, start having problems, the after market will show up and drop the price.
FYI a typical power steering hose (high pressure) cost about $30.
Originally Posted By: Jim_Beverlin
Extended warranties are a [censored] shoot at best. Bought one for our 2001 Ford Sport Trac based on issues that Ford had. They were doing warranty work right up to the day the warranty expired. Didn't on the 2007 Jeep Liberty based on reliability ratings and so far so good. Search the internet for deals on factory warranties. I got a 6 year, 75K warranty from a Ford dealer in Iowa for 50% less than the local dealer in MI quoted me.
No window regulator issues yet with the liberty? My 2006 has had 10, count them, 10 window regulators replaced. One just this past Saturday.(The only issue I have had, the rest has been trouble free, knock on wood).Luckily, the dealer has replaced them all at 0 cost to me, even though I am out of warranty.No extended warranty for me.
Extended warranties are a [censored] shoot at best. Bought one for our 2001 Ford Sport Trac based on issues that Ford had. They were doing warranty work right up to the day the warranty expired. Didn't on the 2007 Jeep Liberty based on reliability ratings and so far so good. Search the internet for deals on factory warranties. I got a 6 year, 75K warranty from a Ford dealer in Iowa for 50% less than the local dealer in MI quoted me.
No window regulator issues yet with the liberty? My 2006 has had 10, count them, 10 window regulators replaced. One just this past Saturday.(The only issue I have had, the rest has been trouble free, knock on wood).Luckily, the dealer has replaced them all at 0 cost to me, even though I am out of warranty.No extended warranty for me.
Originally Posted By: barlowc
And it was a GM Protection Plan warranty which simply extends the original warranty.
Not so. The Protection Plan is not a warranty and does not extend the factory warranty. It covers exactly what the contract paperwork says it covers IF you fulfill all the requirements the contract places on you. Gott'a read the paperwork.
And it was a GM Protection Plan warranty which simply extends the original warranty.
Not so. The Protection Plan is not a warranty and does not extend the factory warranty. It covers exactly what the contract paperwork says it covers IF you fulfill all the requirements the contract places on you. Gott'a read the paperwork.
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