Not sure where to ask, anyone have advice on after market warranty purchases?
List of companies, etc.
Ron
I bought an extended "warranty" with a used car back when I was 18 and didn't know any better. About three months later the transmission went out and the "warranty" providers basically told me to go kick rocks. There was a metric ton of fine print in the contract that gave them a way to weasel out of whatever they felt like. Biggest waste of money ever.
I'd just set aside a bit of money for unexpected issues.
How much are you willing to gamble?
The warranty company is gambling that you'll pay more for the "warranty" than they'll pay out in claims. They have experts assessing the likely dollar value of claims, they have lawyers writing the contract so they have loopholes, and you have whatever research you're willing to do...part time, using half-assed research sources. And if there's a problem, or a claim, how long do you want to sit on "hold" waiting for someone to talk to. Remember, "Your call is very important to us. Not so important that we'll staff the telephone service office, But important in some sort of nebulous, non-describable way."
So, sure, if you feel like throwing the dice 'cause you know more than the "experts" and Lawyers, jump all over an "extended warranty".
The proper attitude as far as I'm concerned is: If the car-lot is selling a shitbox vehicle that I need to pay extra for a "warranty" to feel secure, I'm not buying anything from them--it's all junk.
TRUE STORIES from my experience as a dealership service advisor who had to deal with the damned extended warranties sold by the crooks in the Sales department: Note that this goes back about thirty years.
1. Warranty does not pay for fluids or filters, even if you'd be nuts to not change the fluid or filter when, for example, a transmission throws metal after destroying a batch of thrust bearings and the planetary gearset.
2. Warranty will fix the burnt valve in the
one cylinder that now has no compression. The valves in the other seven cylinders are YOUR PROBLEM. Now find a machinist that is willing to **** on his own reputation by doing a one-cylinder valve job. My guys were instructed to only remove the cylinder head that had the bad valve--the other head STAYED ON THE VEHICLE because the warranty wouldn't pay for gaskets to remove it, or the labor cost. Doing a proper service cost the warranty customer 2/3 of the full cost of the job--warranty paid for one head gasket, one valve cover gasket, half of an intake manifold gasket set, grind the one bad valve and one bad valve seat, and labor to R&R one cylinder head. Taking care of the rest of the valves was "Customer Responsibility" along with the oil change.
3. Claims and service authorization are handled by telephone. I'd spend 20 or 30 minutes at a time on "Hold" because waiting on hold cost me money, (I couldn't help other customers while I'm stuck on the 'phone) and saved them money when folks just hung up and didn't follow through with the claim. They had every reason to under-staff the claims and authorization department.
4. The extended warranty was often as profitable as the used-car sale itself. The salesmen that sold the most warranties got bonuses for fukking the service department.