Non Factory Warranties

[slow99]

Are any of the used car warranties worth a shit? I'm referring to the ones offered on vehicles that have already passed the manufacturer's warranty limits - not extending the factory warranty. I'm looking to buy cars that are out of factory warranty and the extra cost might be worth the peace of mind if they're actually worth a shit. It's been a while since I bought a car that wasn't under warranty, but from my experience they were all pretty much worthless (ie, would come up with any reason to deny a claim). Please let me know if you've had experience with any that are worth a damn.

[Sean88gt]

I don't know of any that are worth a shit.

[Roscoe]

Funny you ask, the American Greed tonight was on this exact scam... (Google US Fidelis)

Personally I wouldn't as they are a bunch of unregulated thieves.

[A_A_G]

Nope dont waste your money and time.

[03mustangdude]

Nope only buy extended warranties at dealer while the car is under warranty.

[Scott Mc]

Junk

[8mpg]

Nope only buy extended warranties at dealer while the car is under warranty.

dealers sell 3rd party extended warranties. Van Tuyl (the whole group) pushes their own warranty which is MPP over factory warranties. I would only buy a factory warranty

[GeorgeG.]

There's probably some good one's out there, but without first getting a copy of the coverage that lists EXACTLY what is and isn't covered, I wouldn't fool with them. It's been over 10 years but I use to work for an extended warranty administrator back in the day and it's all in the wording.

[BP]

There is a difference between a warranty and a vehicle service contract. A warranty is a legal agreement between the manufacturer and end user and is administrated by the seller, generally a franchised dealer.

Vehicle service contracts are a legal agreement between the buyer and seller but are backed by an underwriter and generally administrated by a 3rd party. The seller typically doesn't have any kind of franchise agreement with the administrator or underwriter.

When you buy a service contract it's really just an insurance policy, if you agree with the terms and think the risk outweighs the cost then it's probably a wise investment.

Where the variables come into play is the administrator/seller relationship and how profitable the underwriter is. A good dealer that doesn't abuse their warranty company with lots of bogus claims will get a softer hand than a crooked dealer that sells a bunch of junk and tries to pad their bottom line by ripping off the warranty company and customer. Now if the underwriter is losing money they'll pressure the administrator to cut spending but it's still a contract and is legally binding. Write a letter to the state attorney general and they'll usually roll over.

By buying a "manufacturer extended warranty" you are still buying a service contract but it's from a dealership that has some kind of a franchise agreement. It's in the dealership's best interest to keep the customer happy and to not abuse the warranty.

The bottom line here though is that if you buy from a decent car lot that doesn't sell junk and has been in business for a while you'll probably have a decent time with the warranty. If you buy from the tote the note lot down the street that'll change it's sign next week and call the cops when you try to get any service you'll probably have a bad time.

Look closely at the exclusions, look for any clauses requiring you to return to the selling dealer, look for deductibles and if they are per visit or per repair, look at rental terms, the limit of liability and if there are any specific maintenance terms.

Things that usually piss people off are not paying diagnostic time, not paying the full labor rate, not covering rental or towing, not covering "emission control items" or technology devices and how they determine normal wear and tear. That and shady sales people will tell you it's bumper to bumper and they use brand new parts, just like a factory warranty. Those contracts don't exist in the real world.

[War Machine]

Do NOT deal with C.A.R.S. warranty. WHen I used to sell their warranties I bet 90% of the claims would get denied cause their agreement has so many loop holes.

[YALE]

You'll probably be better covered just getting a backup Yaris.

[slow06]

I think of it like I think of insurance (although it is not insurance): You are putting down money with the expectation that you will have problems. The administrator is betting that you will not. The only way the administrator makes money is if they win that bet more than you do. And they do. That is just how insurance and service contract pricing works. They have to bring in more in sales than they pay out in claims.

If you decide to buy one get a copy of the contract first and read it. It's a contract that covers exactly what it says it covers, along with the noted exclusions. It doesn't cover what the customer thinks it should cover.

No matter what any salesman tells you it isn't "bumper to bumper" coverage. There are excluded conditions and excluded parts on every contract. Find those specifically.

If the salesman tells you something is or is not covered find it in the contract, or have them point it out.

Make sure you do your scheduled maintenance and can prove it.

I don't know of any in particular, but some dealerships will sell them on their service drive.