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O/T Extended Warranty for Auto

Discussion in 'Off Topic Threads' started by jm1079, Jul 8, 2010.

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  1. jm1079

    jm1079 Well-Known Member

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    Am shopping for an extended warranty for my GM car and would like to get your input on this topic, such as your recommendation of a good company based on your experience, companies to avoid, etc.. Any help will be highly appreciated. JM
     
  2. AveragEd

    AveragEd Well-Known Member

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    The only extended warranty worth buying for a GM vehicle is a General Motors Protection Plan. Yes, it will cost more but it will offer several important advantages.

    There is no list of covered parts; instead, there is a short list of non-covered parts. There's no gray area regarding coverage - if the part isn't on the list, it's covered. Wear-out is covered, not just outright failure. Dealerships receive approval for repairs instantly via computer and know they will receive payment electronically as soon as the next day, so you don't have to front any money or wait for a warranty company to issue a check or credit card payment. In the event of a major component failure - engine or transaxle/transmission - an adjuster is at the dealership the same day or the next day. The Plan is transferable - important if your vehicle is stolen, totaled or you just don't like it.

    And here's the one nobody considers until a major failure occurs, whether during the warranty period or just after it expires. GM wants your next vehicle to be a GM product, so your satisfaction with your GMPP is important to them and they will extend goodwill if prudent. An aftermarket warranty couldn't care less what kind of car you buy next.

    Always buy an extended warranty marketed by your vehicle's manufacturer. No one else cares about your happiness with your car and their warranty as much.

    Ed
     
  3. DelarockX

    DelarockX TS Member

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    My advice, as a former finance manager for several different dealerships... Don't buy 3rd party service contracts. They are usually more problems then they're worth. Make sure it's stamped with the manufacturer logo on it.

    Most manufacturer extended service contracts are worth the money if you either plan on keeping the car a long time or, more importantly, if you drive a lot of miles.

    When you sign your contracts for your vehicle, try and negotiate with the finance manager. I know it's not the most fun thing to do, but you can probably save yourself a couple hundred if you really want to purchase one.
     
  4. jm1079

    jm1079 Well-Known Member

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    Need more info on 3rd party warranty as I just found out my car no longer qualifies for GMPP. Thanks. JM
     
  5. DelarockX

    DelarockX TS Member

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    Does GM use JMA warranties?
     
  6. short shucker

    short shucker TS Member

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    If it isn't factory then it's not worth the paper it is printed on! This is fact not fiction.

    This makes no difference whether you are taking about Ford, Chevy, Toyota, etc...

    ss
     
  7. noknock1

    noknock1 Active Member

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    STEP 1) If it is not a factory warranty, take the money you were going to spend on a factory warranty, throw it in a shoe box and add $200.00 a month to that amount...

    The "warranty money" will add up quickly and you will be "covered" in no time in the event the tranny goes out or you throw a rod... You will be almost immediately covered for routine stuff like a bad condensor, alternator, leaky seal, etc...

    If you are going to buy a non-factory/ 3rd party warranty, then go ahead and buy it, then refer to and follow step #1 listed above.

    I got screwed on a 3rd party warranty several years ago as well as my dad. We are slow learners, but we do learn... We won't waste money on a third party warranty again!
     
  8. Mdl1261

    Mdl1261 Member

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    I couldnt agree more what has been said. Third party warranty are Junk !! I used to be a Service mgr and had my fair share of tussles with off the wall companies. If its Not GMPP dont get it !! I got one when I bought a car for my wife .. Go figure !! .. Chuck
     
  9. bobdog

    bobdog Active Member

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    Agree about third party warranties, but I learned something last time I bought a car that might be worth passing on. It turns out you can save a lot of money buying the factory extended warranty from a different dealer than the one selling you the car. Extended warranties are priced based on what the traffic will bear, and they are high profit items used to pump up profits.

    I bought a one-year old 2005 Explorer a couple of years ago, and the closer made a big ceremony about quoting me a three year Ford bumper to bumper extended warranty, for $2300.00. It was a Saturday, and I told him I wanted to think it over and get back to him on Monday.

    I went home and spent 15 minutes on the internet and found an authorized Ford dealer in Des Moines who was delighted to sell me the exact same package for $1100.00. It was marginal business for him, so he was happy to sell it to me just over cost. It was the same Ford Total Protection Plan warranty, valid at any dealer in the country, so it doesn't matter where you buy it. Most people don't bother to consider that the price is negotiable.

    It was a $1200.00 lesson for me.
     
  10. DelarockX

    DelarockX TS Member

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    The key problem is that if you're not paying cash, you can't draw a contract and then add a service contract to the payments.

    Yes, there is usually a lot of profit in service contracts. There is also an issue with internet sales of service contracts... at least there was with Honda. I think they squared that away.

    Bottom line, the only way to keep yourself safe is to educate yourself. Such is life, isn't it?
     
  11. bobdog

    bobdog Active Member

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    That's why I bought a one year old car. A new one was upwards of $35,000; I paid $19,000, which included the remaining factory warranty. I traded in a really tired '96 Explorer that was only worth about $4,000, so I ended up writing a check for $15,000 and drove away with a one year old car and no car payments. I just turned over 100,000 miles last week. You take on a little risk with a used car, but that's what the extended warranty was all about. I had bumper to bumper coverage up to 75,000 miles. You only pay sales tax on the net cost, so the difference in sales tax alone was $1600, not to mention interest on a car loan I didn't need.

    I'm not a cheapskate, but I'll never buy a new car again. That new car smell is expensive.
     
  12. Bruce Specht

    Bruce Specht Well-Known Member

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    Avoid them all it's a waste of your money. Pay as you go for repairs, if your car is new it's coverd for 100K!
     
  13. AveragEd

    AveragEd Well-Known Member

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    There was an article on extended warranty companies in Automotive News, the trade newspaper of the automobile industry, perhaps 20 years ago. At that time, there were hundreds of companies selling automobile warranties in this country and 75% of them had been in business six months or less. What that statistic says is that it is a very here today, gone tomorrow industry. I got a very first-hand lesson in that phenomenom.

    In the early 1990s, I was recruited heavily by a warranty company headquartered in Harrisburg, PA, which is about five miles from my home. They wanted an adjuster who was mechanically knowledgeable and liked the idea that my experience as a dealership fixed operations manager would enable me to not only relate to the vehicle mechanically but also to the dealership's service and parts departments. The claims manager also explained that whomever was hired would likely take over his position upon his retirement, which was three years off. After three interviews, I was hired and the claims manager was to call me the next day to arrange to go to the dealership where they purchased their company vehicles to pick mine up.

    He never called and their phones were no longer answered. I ran into that gentleman a year or so later when he came into the dealership to inspect a vehicle covered by an aftermarket warranty. He told me that a few hours after he hired me, he was notified that the company was ceasing operations at the close of business that day.

    Like I said - here today, gone tomorrow.

    Ed
     
  14. jm1079

    jm1079 Well-Known Member

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    Looks like avoiding this 3rd party warranty companies is a unanimous piece of advice, and will be taken. Thanks to all of you for your inputs. Just out of curiousity, is there any one out there that has had a positive experience with a 3rd party warranty seller? JM
     
  15. DelarockX

    DelarockX TS Member

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    There is a warranty company called JM&A, they underwrite the service contracts for a lot of different companies.

    Their warranties are very similar to manufacturer service contracts. If you really need a service contract, this is probably the only non-manufacturer way to go.

    All the dealerships I've ever worked at had JM&A service contracts available. As a finance manager I always opted to sell the manufacturer's product. The price differencial was always a tough sell, and most customers were too wary of purchasing a non-manufacturer product.

    This is not a fly-by-night company.
     
  16. trim tab

    trim tab Active Member

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    As a GM dealer for 33 years a GM extended service warrranty is theonly way to go. To many aftermarket companies with warranties have come and gone and the customer is normally stuck.
     
  17. jm1079

    jm1079 Well-Known Member

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    Pat
    I did that but my warranty period expired in February of this year, and GMPP told me my vehicle would not qualify. This is why I am looking into a 3rd party warranty. JM
     
  18. neofight

    neofight TS Member

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    Third party warranties are very much akin to the bargain battery warranties. When you are crossing the Mojave in the middle of Aug. and your battery fails, remove warranty certificate from glove box, place on top of battery and try cranking it again.
     
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