Mechanic’s View of Aftermarket Car Warranties
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- Опубликовано: 18 ноя 2023
- 4 things no one is talking about when considering an aftermarket car warranty.
01:12 Reason #1 - Much Longer Wait Times For Repairs
06:29 Reason #2 - Diag & Denied Claims due to "Uncovered Parts"
10:03 Reason #3 - Predetermined Price on Labor & Parts
16:23 Reason #4 - Cost of Warranty Vs Policy Limits 
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For 5 years I worked on the other side of this. You are bang on point. I will not bore you with the details, but I'll tell you that after 5 years I could no longer live with it and left. We were instructed to go thru the claims and the contracts to find a "legitimate" reason to not pay out. In my case, the "warranty" was actually a mechanical breakdown insurance. Insurance companies, like casinos, always win.
For anyone reading this, avoid it. You're better off putting that money away for when your car needs a repair.
It makes sense to save the money in an expense account. At least if you don't use it, it's money you still have and not money gone.
Absolutely. On. Point.👍
The House always wins. Never forget.
By that logic, might as well by Hunger Insurance and then file a claim every time you're hungry.
Imagine the red tape, delays and cost associated with every meal, all costs built into a stupid Hunger Insurance policy, plus more for marketing and profit margin for the insurer☺️
I tried to convince my friend not to buy a warranty, but he did it anyway. The celebrities promoting these products should be ashamed of themselves!
Well, ya gotta realize that some of them have gone broke from buying N.G. extended warranties on everything in their mansions...
This man speaks the truth. Do not waste your money. It has gotten to the point where I just tell people I don't deal with extended warranties. One example, a lady came with a Buick Lesabre. The engine would not turn over and appeared to be locked up, but it was actually just the A/C compressor. Her "warranty" had a $100 deductible, did not cover fluids, didn't cover tax, and the rep told me they wouldn't cover a new or reman compressor and wanted to ship me a used one. In the end they ended up paying just over $100 on a $500 bill and she left with no refrigerant in the A/C because she didn't have the extra money to cover it.
40 years in auto repair, and I can confirm his every remark. Take the money that the warranty costs and put in a savings account instead. When your car breaks down, you'll have some funds to pay an honest shop a fair dollar!!
I've never bought an aftermarket warranty. Knowing how much commission the salespeople make on these was enough. This is an excellent overview from a mechanic.
"WE'VE BEEN TRYING TO REACH YOU REGARDING YOUR CAR'S EXTENDED WARRANTY..."
And they specifically refer to a car that was totaled in 2017. Persistent SOBs.
These are the same people who got my 40-yr dead grandfather to vote in the last election.
When I buy a new car, usually a Toyota, I really enjoy the visit to the financial guy and just say no to the 5 or six items on their pressure sales checklist, usually with a slight smile. I've been buying cars for over 50 yrs and have done 80 % of all my own and my wife's car maintenance. 😂
😂😂
@@andrecampbell691 What some people don't realize is that you don't have to buy an extended warrantee from the dealer you bought the car from. If you want to get an extended warrantee you can go online and find dealers who sell the same Manufacturer's Warranty for much much less less. Also, you have up to the the original warrantee expiration to purchase the extended warrantee, so you have lots of time to shop around.
This is the reason why I never waste money on extended warranty. Brother, I commend you for taking the time to put this information out there. God bless!!
The home warranty business is a rip off as well.
@@twoody9760I had one and they replaced the central AC and a hot water heater. I am so far ahead of the policy cost, it saved me a ton.
I own a small shop in Ohio. I decided to deny warranty companies years ago now for all that you discussed.
I was a service advisor for 15 years. You are right on target. The prime objective for the service contract company is to find a reason to reject the claim, not to service their customer.
I recommend vehicle buyers to take the money they don't spend on a service contract and place it in savings. If a repair is needed, you will have money for it. If no repairs are needed, you have a stash of money to treat yourself to something special.
Same for any extended warranty on anything.
3k for example is not gonna cover a trans replacement or engine replacement. I dont really understand this a approach.
@@teddward9550 Buying a service contract on ANYTHING is a gamble. How is your luck? Don't think that submitting a claim on a service contract is a piece of cake. If your vehicle has a COVERED major failure, the contract company will search for a replacement part at a junk yard (read the fine print). Doesn't that boost your confidence? I still say - save your money!
@@teddward9550 How about buying a car with a low likelihood of needing a transmission or engine replacement? How about spending a couple hundred dollars to service the transmission fluid every 50k miles and making sure you increase the life of the transmission exponentially? There are several things you could do before jumping to getting an aftermarket warranty.
@moshet842 planned obsolescence and auto engineers have entered the chat. Whether it's Nissan's CVT transmission, kia and hyundai engines over 150,000, internal water pumps, ford's ecoboost... I can go on and on. Almost every manufacturer have produced bad designs that fail. The biggest problem now, is that labor rates average $150 - $200 per hour. Look up the percentages of consumers who have emergency savings and you will see why it's not just as easy as saving the money
I was a career auto tech (40 years) and small shop owner , spot on description of what to expect , I always told my customers don’t buy the warranty but put the cost of it aside to use for future unexpected repairs. Nobody ever complained.
right
Everyone needs to hear this. Warranties add time to repairs, and there are still things you have to pay for. YES, all shops should charge for diagnostic time no matter what. Technicians should not work for free. Shops are expensive to run. Diagnostic equipment, software subscriptions, and training all come with a price.
Too bad half the time they are wrong. And when you come back with the same issue they want to charge you for a new part and labor. It makes no sense. They want to charge 2 bills for the same problem when it was supposed to be fix the first time.
Been in the HVAC business for decades and have refused to get involved with companies that provide home warranties, for all the same reasons you list. Thanks for telling it like it is. Wish your shop was close to us.
I spent $2500 on the Carmax warranty. by the time I was done with my four years Carmax had put in about $15,000 into my truck. No extended time at mechanic shops and never had a single repair declined. It actually became a thing where taking my car to the mechanic was a chance to have my car thoroughly gone over and anytime they found something that could possibly be worked on. They got it approved and it was repaired or replaced. So maybe not all warrantees are the same but the warranty from Carmax was wonderful.
For you, I am willing to bet the guy working on it lost money on his flat rate pay, but what do you care?
This post brought to you by Carmax.
@@franktarant3947I owned a shop and allowed mechanics to work flat rate or hourly. At least new guys would always go hourly. I also adjusted flat rate in my QuickBooks to document unforseen issues that adjusted actual repair times.
Didn't Carmax just go bankrupt ??
Had a customer with a Raptor he puts a ton of miles on. We didn't sell the truck or the warranty (CNA). He got 15k out of the warranty at our shop the first year he had it and they NEVER gave us any issues or sent an inspector. He's currently sitting around 21k in repairs total at our shop and still, one phone call, fix it.
Reasons:
1. THEY are a rip off.
2.They ARE a rip off.
3.They are a RIP off. and finally..
4 They are a rip OFF!!
Haha hey man no spoilers 😂
Yea I let it go
Only 4 reasons? I think it might still be worth it
Your being ambiguous, can you please clarify 🤣
SPOT ON CORRECT 💯
I work in consumer electronics repairs, and we hate it when a customer says they took out
and aftermarket warranty.
Even in warranty repairs can be a nightmare, you have to use oem parts but they refuse to pay
a reasonable amount to cover the time involved in finding the fault and then if approved the time to
replace the faulty part and test the item.
Then customers think we are trying to overcharge them if the claim is refused.
I think if the repair shops formed a co-op of sorts and then sold their own after market warranties everybody would be financially ahead. It would work like collision repair where the insurance co-op would take an educated guess at the problem, predetermine the amount they're willing to pay, and the repair shop could decide whether they are willing to take on the job. Part of the premium would be paid by the participating repair shop and the major portion would be paid by the vehicle owner. This way, everyone would have a dog in the fight.
I can personally testify that this happened to me with the purchase of a Security Camera System at Wally Mart, ($759.00) I purchased the 3year "Extended warranty" furnished by Allstate under the SquareTrade Name" which turned into a NIGHTMARE! Two cameras failed and were replaced. Upon the failure of a Third Camera, SquareTrade refused to pay/replace for the Third camera, citing the EVIL Excuse that repair costs for the Two Cameras; $358.00 & $368.00 respectively SURPASSED the amount of coverage! WHO, in their Right mind would spend this amount of money for; "REPAIRS"? These Cameras purchased separately cost $45.95 EACH...Less than $92.00 THIS IS INTENTIONAL AND EVIL! Needless to say, I have filed a complaint with the FTC, OAG, BBB which at present deserve to be a Class Action Lawsuit against them. Obviously the hands on Allstate's logo should show a middle finger pointing up!
Sometimes you get an extended warranty if you bought on a credit card. Try going through the credit card company.
@@lopesphoto I did purchased it with my Credit card and don't see any problem with that. The problem is the EVIL trick many companies use in trying to fulfill their obligations.
If I buy an extended vehicle warranty, it’s always from the vehicle manufacturer, that is Ford, or GM, etc.
Thanks for the honest report on after market warranties.
For sure! Thanks for your support!
Yes...I'm getting a Mopar (my 3-year OEM/factory warranty runs out very soon). NEVER would go with an aftermarket/3rd-party extended warranty.
-- BR
Agreed. But you have to be careful, there’s a Honda dealer by me that’s selling “their” warranty as a factory warranty. Only good at their shop. Scamming b*stards. I forced my daughter to buy a factory warranty on her pre-owned car because it was in an accident once already. She wasn’t happy but my policy if I can’t self-insure I’m buying a factory warranty. Yeah I know it’s pure profit for them but like all insurance it’s a crap shoot. If it was new, I would’ve passed on it.
@@JimAllen-Persona Well, made sure mine was a Mopar (OEM/factory) extended warranty (aka: service contract, aka: vehicle protection plan), but I got the best deal in-person at a local Jeep dealership: Mopar Maximum Care, 5-year/85K miles/$100 deductible (expires mid-April 2029) for $2245 -- $100 over dealer cost ($2145). Mopar is financing it (I wanted a 12-month term, not 18) @ 0% interest, no $$ down required and no "admin fee" like the online sources. I've heard some dealers do $50 over cost, but that's okay -- I'm fine with the purchase and it was a local dealer purchase.
I agree though the almsot all auto dealerships try to get you any which way but loose, don't they -- one huge reason to research what you want to buy and not let them do any "creative financing" whatsoever. Or as you pointed out misrepresenting their products.
-- BR
(2021 Jeep Gladiator Rubicon)
@@billredding2000 I have the Lifetime Maxcare Mopar warranty (no longer available) on my 2015 Wrangler Rubicon I bought new in 2014. Not one thing has ever gone wrong with it, and I'm not complaining. But I'm in my 40s and plan to live a lot longer. 🤣 Went with the 8 year (longest available) Maxcare on the wife's 2019 (bought new 2018) Grand Cherokee. It's been flawless to this point but the radio screen is starting to delaminate. Still works but looks bad. That'll be covered and I'll have broken even on the cost of the warranty once that happens.
Whenever you buy a car at a dealership they push these vehicle maintenance warranties like crazy. There are super high margin for a dealer to sell. They tried to sell one to my son when he bought his first nice car. I explain to my son that the woman giving you a personal anecdote about how great the warranty is is a salesperson, and what she says to sell you the warranty is not binding. Once you buy that warranty and she gets a big commission, you're on your own. All these warranties like American home shield home shield are never worth the money and it usually takes people a couple of times of getting screwed to figure it out.
I am convinced that there is case for a class action against aftermarket warranty and home shield insurance and I am convinced that it will ruin and close forever the two biggest scams in this country. It will bring
down the price of buying a house and car, save thousands of dollars
to owners and probably put out of
business all those crappy, scammers, straight up thieves that call themselves Realtors and Car dealers.
I'm in Canada & bought a used 17 Sierra that came with one of those warranties,I didn't pay for it.. It was a 1 year warranty..10 months into the warranty,#4 developed a misfire..Took it to a shop I knew of, worn cam lobe..The warranty did cover the $5400 Cdn dollar repair..I had to pay diagnosis,oil/filter,spark plugs & gaskets which came to $380..I thought after reading negative reviews over & over on the company,I was gonna be screwed somehow..I didn't get screwed,nor would I ever purchase any aftermarket warranty personally..
Agreed, prepping up front with the client is key to "misunderstandings."
I just got Walco aftermarket warranty and when I was buying the warranty they game me a 30 day money back guarantee if I changed my mind. Well looks like I’ll be getting my money back because if my car is going to be sitting In a shop for two to three weeks I’d just do the whole thing myself or find an honest shop that I can trust and is passionate about their business and customers.
Thank you for your experience, expertise about this situation/subject!
Good luck.
Thank you. Well done. Never had aftermarket warranty and now confirms I never will. Great topic, first time for me. Appreciate it. Thanks again.
Thanks for the support! 👍
The previous truck I bought was a 2018 Cadillac Escalade. After 20 plus visits to the dealer, vehicle still under warranty, plus I bought their platinum extended warranty too, I gave up and sold it. I got most of the extended warranty money back after a lot of arguing, insisting, emails and many months of waiting. Had it less than 3 years. Next truck, Lexus GX 460, negotiated the vehicle, no dealer fees, tags title, registration and tax. It felt soooooo very good to say no to everything else! Soon coming up on 3 years of trouble free ownership, just maintenance. Really enjoyed your perspective on your business and the way you have to handle these companies.
I noticed the algorithm has changed somewhat Smaller channels like yours are now showing up in my feeds and the million plus channels have been pushed less to my feeds. So I liked and subscribed
They will do everything possible they can to not pay out. Guaranteed. DO NOT BUY EVER.
Yeah, very few step up
@@ShadetreeAutomotiveLaytonWhat few are actually worth the hassle? Any thoughts on Endurance vs CARCHEX?
@@BiloxiBlues07no matter what avoid Car Shield
@@ShadetreeAutomotiveLayton Are you attached to a dealership? If so, have you had any issues with the third party extended warranties the dealership sells?
No to Endurance
I'm retired from medical laboratory management and can assure this exactly what medical insurance does to providers. Drives up costs as they employ people to figure out ways to not or to delay payment. This forces the provider to have employees working to get paid
This was my first thought. Once the costs go up and the time is lost, there is no going back. People will eventually need insurance because they will not be able to afford the inflated costs.
Thanks for a great and truthful video. Extended warranties are rarely good value. The margin on selling those warranties mostly provides for the high pressure sales tactics of the F&I guy at the dealership.
I've never had these issues with an extended warranty. You might just get the bottom of the barrel companies at your doorstep. Every time I've felt with a warranty, it's been my deductible and that's it. I might wait a day or two for parts, but the shop has never had the issues you describe. Maybe it's because the dealer takes care of it and not a 3rd party garage?
This does make a difference. They treat a dealer as “they know the car” and “Joe’s garage” as “what do they really know? They have to prove it”
Also service advisors at dealers know how to talk around certain things in order to process warranty claims quickly. Even factory warranty is a pain but the right advisor can push it through by saying the right things.
I take it to the same dealer that sold the warranty then it’s on them to deal with it because they made money on the sale of it and have to stand behind it. Has worked for me.
I was a technician and a service writer for many years and they would deny a claim for multiple reasons like all you have explained. Everything you said is true and then some. I had to wait for a rep to come and inspect the car for over a week many times but they would cover the rental, the stories go on and on. Great job explaining the aftermarket scams.
My lifelong buddy here in Murray, Utah runs an auto repair shop. His advice is to set aside what you would pay for an aftermarket warranty every month in a savings account. After a year or two you'll have enough to cover most or all of a repair. Great advice in my opinion.
I had an after market warranty in the past. My power steering pump reservoir was low so I refilled it. A few months later I took it in for service and it was low again, the service center refilled the fluid. I took it in for the next oil change and again it was low. The service center recommended replacing the pump. We submitted it to the warranty company. They denied the claim saying I was negligent because I continued to drive the car after I noticed the fluid was low. That was the last after market warranty I have paid for. They are worth less than the paper they are printed on.
I had the same problem. I just bought 1 gallon jugs of and saved up until I could pay cash to to have the entire front bushings and worn steering parts replaced.
Power steering fluid washes off the drive whenever it rains.
Took 10 ten months and I paid $1400 to have steering rebuilt.
But it was a bit easier than doing myself.
My sister in law also convinced my wife I did not need tools and a air compressor in the garage. Wife also did not know about the savings account.
Once upon a time I rebuilt transmissions and engines.
That was how I paid for my engineering degree.
You shouldn't have revealed that you filled up the power steering pump. There's no way they could have known.
@@dannydaw59 The service station communicated with the warranty company. I don’t know if they told them or not. Either way it would have been in the service records.
I wish I could find a mechanic like you in my area…. You really take care of your clients….
it's like an insurance policy that has so many things that are not covered that I would never even think of buying one. it's good that you are talking about this. it's exactly an insurance company and not an actual warranty that you might get from the dealer at the time of sale...but usually they are not worth it because the car isn't going break down until the warranty is expired....
that depends on the warranty. i had a comprehensive AAA warranty that was bumper to bumper and covered my VW Passat timing belt failure. My Subaru gold plus warranty has already paid for itself and my primary reason for purchasing it was to cover the CVT transmission
Good info. We've encountered similar issues in the mechanical trades with home warranty companies.
We send homeowners with inquiries involving home warranties to our competitors.
We have sympathy for the homeowner, but we enjoy and appreciate our non-home warranty customers.
Thanks, Tom! And Thank you Shadetree Automotive for taking care of my babies, including my latest one, since 2008.
my BMW, convertible, loving friend, bought these warranties when he would buy a returned lease BMW convertibles..
he was paying $151 a month for over 10 years over the time he had those three BMWs for repair warranty coverage..
his convertible top would not go up. Not covered under the warranty.
is automatic transmission shifter that could swap between just automatic mode or you could move the lever by hand to shift gears. Not covered under the warranty.
his power window/power door lock Control panel had some type of a fault, not covered under warranty
his driver, seat frame, Brooke, not covered under warranty
There were other little things that were not covered, but they were not expensive like these, four that I mentioned..
my friend paid over $18,000 over those 10 years for that extended warranty that he retained coverage by switching the coverage from car to car when he would get a different car over those 10 plus years..
The out of pocket additional money he had to come up with for those four repairs was over $11,000. Add that to the $18,000 he paid for the warranty that did not cover those items, plus the other items that were not that expensive that were not covered, that’s approaching $30,000 straight out of his pocket when it could have been just $11,000..
my buddy finally saw the light when he got into financial problems ..
He learned that BMWs are expensive to maintain. And that many of the procedures should, and can only be done by the dealer Service department because they have the special tools for some of those repairs and parts, such as the control unit for the convertable top, and a very special shifter mechanism, the window control module.
he also learned that those extended warranties are not just a waste of money, they are outright robbery that they do not need a gun to pull off..
those television commercials plant a seed of doubt, it’s like gangsters selling protection in the old gangster movies from the 30s and 40s with a little difference, you pay them now, and they won’t protect you later..
also
since 2000, I have bought five new vehicles for myself for my wife. Every one of those dealerships tried to sell me extended warranty on those vehicles. I got so tired of telling the Man in the office in the back that does all the paperwork, no I don’t want an extended warranty. No I do not want an extended warranty, no, I do not want an extended warranty.
every time I said that, they would repeat the dangers of not having a warranty..
my last two purchases were a car for my wife and a pick up truck for myself. Both times I learned my lesson and I told the salesman after he convinced me that I was getting a good deal and let’s go in and finalize the deal, first thing, if you try to show me an extended warranty, I’m walking out.
I could not believe that the man that takes care of all the paperwork both times after I warned them that I would walk out, he still tried to sell me an extended warranty, and I heard the salesman tell him not to press me for selling an extended warranty. I did walk out and bought my truck at another dealer. I walked out telling the salesman “I told you I would walk out if you try to sell me an extended warranty, and I left.. actually, it was a good thing for me because I got an upgraded truck for $2600 less than I was going to pay for a lower, equipped 4 x 4, pick up..
these dealers are getting desperate to shake you by the ankles for these little extras. That aren’t so little anymore.
Monty python did a skit, where John glease was explaining to Michael Palin, that the warranty has fine print that says..
“ no claim you make will be honored”
A garage owner did a video here on RUclips. Explaining that one of his female customers car needs a flywheel. The flywheel is bolted onto the end of the crankshaft, and the transmission bolts to the flywheel. The fly wheel is a large gear.,, it has gear teeth machines all the way around the outside of the flywheel. The reason is, the starter engages the fly wheel and spins the engine over when you turn the key ..
The woman has one of those warranties. They want an estimate from the garage meaning they want to see the damaged part which requires removing the transmission and engine and separating them to get access to the fly will.. then he needs to submit the paperwork and they will think about it. With one little problem.
The fly wheel is not part of the transmission, the fly wheel is not part of the engine. For that reason, the fly wheel is not covered under warranty.
Thank you for your honesty!!
Thank you for sharing these tips!
I never fell down for these spam like calls and mails about auto coverage.
I had a warranty company replace an ac evaporator but they wouldn’t replace the receiver dryer stating it was a maintenance item, after the extended warranty expired, I had to replace a failed receiver dryer on my own. In the same vehicle I had a failed cv boot, the warranty company denied the repair stating that the cv boot was covered under the manufacturer’s power train warranty. I had the service advisor send a copy of my owners manual stating that cv boots were specifically excluded undue a power train warranty. The warranty company reluctantly paid for the shaft.
This dude is incredibly honest! Thx for your presentation.
I just had my 2016 ford explorer water pump covered by my aftermarket extended warranty, 2700 job covered. Bought from a large dealer here in Wa state, glad I bought it 4 years ago and they paid the diagnostic as well. My deductible was $50.
Had an aftermarket (WARRANTY) company argue with me about replacing the idler arm pulley after it exploded and took the belt out with it / cut the belt, in my 97 Malibu. ALL BELTS & PULLEY were stated as covered. They said the (idler arm / belt tensioner wasn't covered). Luckily, the service manual in the glove box listed the part as an (IDELER ARM PULLEY). I had to explain this to the dealership because they were clearly playing word games!
Thank you for this honesty and clarity.
I've had a couple of after market warranty contracts. They have worked out for me so far, but it always took longer to fix things than it needed to take. I took the full coverage option (all included, except for listed items) just because of the non-covered parts being the problem with other covered parts. I normally have to wait for the inspector to show up and then have to wait for the approval.... My current Mopar Max contract for my Jeep covers almost everything, but it's still been in the shop for over 4 months this time, partly due to parts availability. So far (over the years), they have covered Engine (long block), radiator, condenser, transfer case, rear diff, all drive axle half shafts, steering rack, tierods, swaybar, alternator, TIPM, ECU, multiple other modules, mirror, window regulator, buttons, suspension parts, and more. But not the leaking tail light... It's a lemon. It would have been cheaper for them to just buy out the car.
You are a hero , sir . One question . On that "teardown" . How in the hell can the insurance company spend the owner's money ? They demand you spend the time . That should be illegal . Damn them .
Great video, Tom -- thank you for presenting this material in such a credible manner. Extremely valuable.
Glad you enjoyed it!
I once bought an aftermarket warranty from a Ford dealership. Several months later i took the car in to the same dealership for a repair. The service dept said they wouldnt honor.
Wow, that was super honest and informative. Thank you very much for taking the time to make this video.
Exactly what your is true with friend on Ford Taurus engine aftermarket warranty was denied, He to go back and forth with them for over thirty days, after that got him a Remanufactured engine, would give him new engine.
Car was out of commission for 2 or 3 months.
Great insight. Many thanks for sharing your knowledge.
If you are going to pay the monthly cost for these after market warranty, why don't you just put that amount of money away every month??
Bingo.
I do that each month. I currently have $12K in my emergency car account for two vehicles. And Ice-T has none of my money.
Aftermarket warranties are an easy way out of concernes until the time comes to use what one believes is "coverage".
IMO aftermarket warranties are a rip-off.
Basically, take care of your vehicle. Change the oil at 5k if the manufacturer says 10k. Dealerships don't make $off selling cats. They make $ fixing them.
Thank you for this information. Purchased a warranty from Ford with my used 1993 Ford Explorer back in the day. Transmission went out. Ford honored their warranty. Thanks God.
Yes, a "FORD" extended warranty. Way better than aftermarket warranty such as Car Shield and Danica Patrick selling another brand.
Bought a new 2022 Honda CRV in 2022. Dealer started the AM warranty. You need this as this car has countless computers. I shut it down, and said you’re wasting your breath. Much to my surprise they dropped the subject. But I agree with you it is very time consuming for you to cross all of the T and dot all of the Is. Great video and subject matter.
Nice work! Thank you for the kind comment and support!
Very well put and I believe accurate. This applies to my industry as well, appliance service. We had so much trouble dealing with aftermarket extended warranty companies, just as was described here, that we refused to deal with them except for one we found to be reputable and we sold. We ESPECIALLY refused to deal with those 'home warranties' that are supposed to cover all sorts of things. WE told customers 'You pay us for the service and YOU make the calls to get reimbursed by the warranty company'!
Good to hear this it will help me stop spending my money on an extended warranty which will only help the warranty company
Thank you so much for sharing and helping us understand the trouble you have with those warranty people (which I am not surprise)
I appreciate for sharing and hope all your customers understand what you have to go through to get their cars fixed.
I don't trust those after market warranty and never did buy them. Thank you.
I am a retired mechanic/ service manager, the warranty company will always win the Battles they have the purse strings ! Always remember that these guys put the WAR in warranty!
It’s not easy for a shop to have a RUclips channel like this. Time is money and it takes time to make these videos so thank you for making these videos. I am always worried about finding a shop that will do honest trustworthy work and won’t try and screw me over. Going to a shop costs a lot of money. I know I’m spending a lot of money over what I could do myself I don’t have any experience, tools, or the place to do the work myself. I just spent $500 on brake pads that came from mavis and were making noise on rough roads and bumps. I know that’s insane but I went to the dealer. Noise is gone. How do brakes make noise like that? Made me worried I’d be wasting my money and the issue still being there.
I wish more shops gave me the impression that I wasn’t wasting my time, getting raped etc.
Hey thanks. Its a lot of work but we enjoy doing it. Keep asking questions and we will do our best to answer them!
literally NEVER use a dealership EVER unless u r dying and literally have no choice or whatnot. Their prices now are often 3X an indey shop, which can easily do brakes.
Don't go to Firestone for brakes either. They install cheap Wagner pads that break down, and do not last for the duration of the warranty they give you. The brakes give you a lot of noise, and the pads tear up your rotors. It happened to me. The pads they install are not recommended for the rotors you have on the car.
If a dealership is offering a warranty of their own it might work out because they are the one offering the warranty. There is no middle man, no insurance agent to please and wait for a response. If they try to cheat you, you can easily make it widely known it is a scam so they are not going to shaft you for fear of losing sales.
A dealer I spoke with offered this:
IF you bring the vehicle to them every 5,000 miles for oil change and check up, then every 50,000 for transmission fluid change and check up, they will warranty your drive train for as long as you own it. If you are like me and drive a car 300,000 miles that's a good deal. Most folks don't do that.
The check up and oil change every 5,000 miles guarantees the dealer the car is maintained properly. They will rotate the tires, check the brakes and under the hood for hoses and belts. The fee was $100. The 50,000 mile one with trans fluid cost $350. That included flush the power steering fluid, brake fluid, differential fluid, chassis lube, and antifreeze as well. So the customer was going to pay less than most warranties and get really good maintenance on the vehicle. If I had bought the car from them I would have used the drive train warranty.
Of course if they find brakes are worn, that is not covered and you do not have to let them do the brakes to maintain the drive train warranty. However, most folks would agree to the brake job since the car is already there.
HVAC guy here, I visited the factory of a major water heater manufacturer and the extended warranty offered by this company was and still is horrible and when you pay extra for the extended warranty its not built better it just cos more. And as a contractor getting paid for warranty work requires many hours of what would be billable hours.
My point is the only people who win are the independent warranty companies 💯.
Everyone else involved losses.
Pay the price for a good appliance such as Bradford White minimal warranty and forget the 7, 10 or 15 year warranty models. They are all the same inside. Same goes with most everything else.
No such thing as too much information. Great advice!
Excellent, excellent explanation. It's hard, when you have the bill in front of you, to understand why some amounts are so high for maintenance and repair, especially if it's a major issue. It's sometimes a very hard pill to swallow. The candor and simplicity in your explanation is refreshing. It's hard for most customers, even me sometimes, to understand economics, margins, profitability, and the competing interests of your shop vs these insurance companies. However, the candor and simplicity in your explanation has helped me a lot to understand, and also to respect your shop. Your explanation indicates that you really advocate for your customers, but at the end of the day you have a business to run and employees to pay, which makes perfect sense. I live a few hours north in a neighboring state and am almost willing to drive down there just to be at an honest shop. Also: I'd never buy an aftermarket warranty.
Thank you for such a nice comment! I really appreciate you taking the time to reach out- Tom Lambert- Owner
Great advice! You stated exactly what I needed to here.
You are so right, based on a personal experience. I had some success with a Small Claims Court claim.
I’ve been a tech for 23 years, extended warranties are the worst. I work for VW now and if we get any older 2.0T engines burning oil, they either cry neglect and won’t cover it, or they send out a junk yard engine with similar mileage. We tell them, this thing is going to burn oil too. They don’t care. Had one that I put in per their request, it burned just as much as the one I took out. We called them back, they were going to send ANOTHER used engine. Thank God one of their reps was a former VW/Audi tech and said no, this is going to keep happening, we need to replace the pistons. That was a very rare instance though. Generally, they are a total scam.
Thank you for the good advice.
This guy one of best I've found. Humble opinion 😌.
Thank you for explaining your position on warranties. You showed an incredible amount of patience and compassion.
I wish you and your business well.
all spot on......exactly why my shop refuses any and all warranty company work....waiting 3 days for them to send me an alternator from a thousand miles away when for 30$ more i can get one locally
We had a Ford contour that I got the extended warranty.
Over the warranty period on the car, the amount of repairs were staggering. I loved the car but man it had issues. That warranty paid out over 3-4 times what the $1400 adder cost me during the purchase back in 2001.
I was also lucky in the fact I had a buddy that worked at a Mercury dealer, and the service manager knew me.
The stories I vaguely recalled from talking with the manager, warranty companies back then were beyond bad to deal with.
Example: I had struts that had failed, and my buddy followed the manager’s recommended advice in order to get the struts warrantied, and it was such BS.
They got the claim approved, but man it was such a joke.
I take my vehicles to a AAA certified mechanic. Fixed correctly the first time with no recurring problems.
Thank you! Very informative.
I say, "save the how much you would have to pay for the Warrant."
So, if you have a year warrant that costs $1,200. I would avoid buying the warranty and just save $100 per month in my own separate bank account. Then keep saving it past the year. So, if the car lasts 4 years without any major issues; you'll have $4,800 to use toward any big maintenance costs such as suspension, brakes, paint, or to replace engine if need be.
Basically, you become your own insurance policy company for Vehicle Maintenance.
Great video.
I was just now looking for videos about this subject and found yours. I just learned that my 2015 F-150, which I have covered by Endurance, is going to cost me personally $745 instead of them picking up the whole thing minus my $100 deductible. Apparently, the car dealerships repair people had a similar nightmare dealing with Endurance, such as you have described in your video here. This is very sad news. I bought the extended warranty directly from Ford when I bought the truck brand new in 2015 and now of course that has expired, so I wanted to be covered and did a lot of heavy research and picked the one I thought was best. However, I'm getting screwed anyway. Hell of a thing. Anyway, thank you for this video. 😞
My nightmare was with car chex
Exactly what people need to know. Thank you.
Thank you!
Great info, thanks.
Car Max is a bit of an exception and I have bought extended warranty through Toyota and Honda and they have been completely honored. That being said, I bought them through the dealer when I bought the car and brought them to the dealer for repair.
After the warranty expires I have a fantastic local mechanic who is fair, doesn’t try to upsell me and does great work. There is no purpose buying an extended warranty that is aftermarket and if you can’t afford the repairs you can’t afford the car.
First of all, most new car dealers want to push a 5 year extended warranty on you for a few thousand dollars. The irony of that is simple. The first 3 years the car usually already has a bumper to bumper warranty which means you’re only getting the last two years of warranty for those few thousand dollars. Next the cost for that warranty is added into your vehicle loan costing you even more in interest over the course of the loan. And remember, that first 3 years is already covered by the manufacturer. In addition to that initial few thousand right up front for that extended warranty, keep in mind that every repair you bring it in for, there will be a co-pay or deductible which effectively increases that warranty cost. One additional point: They don’t expect you to have much of an issue with your brand new car for some time so they are milking your wallet for every cent they can get. If warranties weren’t lucrative for them, they would never push those warranties so hard. If you feel that strongly about warranty coverage, pay yourself that extra money in a separate account and have it in the event you need service. And if you don’t, you’ve still got your money and you haven’t paid all that extra interest to the bank. Can you afford to fill their pockets? If not, fill your own!
Honest commentary. Thanks
I have heard bad things about aftermarket warranties. One guy I know had transmission problems on a Toyota Supra. The warranty company wanted pictures of an open transmission so they could see the problem. They dragged it out for two weeks then said the customer abused the transmission. They wouldn't pay the claim. Don't buy those for warranties.
Thanks for posting, as I was about to purchase one of these.
@@miguelberrios19 Don't waste your money on aftermarket warranties. You save nothing
I was hired to do an inspection on a car. My friend was buying, and they tried to sell him an aftermarket warranty. For $2,2000 I said oh Hell no. Man with a pushing that aftermarket warranty
Totally depends on the company you're working with.
Some good examples of warranty companies are CNA, Zurich, AUL(kind of, if you get their higher end warranties).
I haven't seen one that doesn't pay diag, though they usually will only pay up to an hour, or a "justifiable amount" if over that.
I called CNA a week ago and got a customers transmission covered with no tear-down, no inspector, just 10 minutes on the phone and done with 100% part and labor coverage.
DO YOUR RESEARCH BEFORE BUYING A CONTRACT. There are great companies out there and I wouldn't own a modern vehicle without one.
I always say put that money that you would spend monthly on extended warranty into a high yield savings account and keep that money ready for any major repairs
The biggest issue that I have found with most aftermarket warranty companies is that they won't as is refuse, to pay proper parts and labor for any job.
Thanks, that validates my recent decision not to extended my warrantee with my dealer, which was not factory, but "dealer".
Appreciate the honesty
Thanks for this valuable information and thanks so much for looking out for us. You Sir, have saved countless consumers, including myself, of our hard earned money and aggravation of dealing with this issue. I was in the process of purchasing one soon, and man, am I glad to have saw this video. God bless you.
What I found out was that I couldn’t even do my own oil changes. I had to show a receipt from a shop other than myself to keep the warranty valid. Plus the oil change had to be done every so many months whether you put any miles on or not.
I’m in Canada and I am sure they are the same here, your a mechanic lawyer dealing with the warranty company I learned a lot great video thank you brother.
I just bought a used car from Toyota in Manitoba . I had a opinion for a extended warranty for 2000. I had time to check the better business bureau reports on it . They where not good. In brackets it said does not cover any heat damage . So if a piston breaks . They just say it's from heat damage.
Thank you for sharing your experience :)
I hear that the salesman or dealer selling these will often make a quite handsome profit. If this is true, then it must be very enticing for them to sell these warranties. I'm doubtful in a lot of cases, the customer is informed of the downside of this purchase. Thank you. Great video,Lester
Thank you so much for this video
Thank you for confirming what I already suspected
Had an extended warranty years ago and had a head gasket go and head gaskets were not covered. Of course that was somewhere in the fine print . Great video very informative and on point
Sometimes it in the shop for actual WEEKS for simple repairs. Because they'll often want to send out an inspector and the customer is not allowed to take their vehicle in the mean time. It MUST sit at the shop until the repairs are approved and completed. They will deny the claim if they find out otherwise.
I left the physical therapy field for this exact same scenario,,, insurance would not allow the patient the treatments they needed…
Well now I work on construction equipment and fleet trucks and do Project Cars on the side in the garage where it’s not their daily driver yet… seems to be a happy medium for me so far.
I can’t imagine the big shops headache of all of this let alone needing to dedicate an entire employee just to wrestle the insurance companies as we had to in Physical therapy outpatient services.
yep, part of the age-old scamification/insurance-co/monopoly-co'IFICAtiON of america. We need state gvt's to stop this behavior. Ins. co's are regulated and so should these outfits be. Now health ins cannot do surprise billing in some states like my state.
I work as a tech for a dealership, I feel as though we get screwed, they don’t pay for diag, they pay the bare minimum, sometimes below what warranty pays and they don’t fight to pay the techs the difference because they’re ashamed to ask the customer to pay the difference. They wonder why there’s a shortage in techs and that’s one of many reasons why I want to leave the industry
I'm an educated consumer and I agree with you completely. Most insurance companies exist to rip us off. If it is better for you. I suggest you stop working with those extended warranty companies. I would prefer taking my car to a shop that just focused their efforts (time and money) on repairing my vehicle properly and economically for both parties. Keep up the great, informative, posts. Thank you.
The interesting thing about insurance companies is that when you actually try to use the product you've been paying for, they no longer want you as a customer.
I think I got lucky. I bought 07 Monte Carlo and got the warranty. They covered every repair I needed, until I was close to the cost of the warranty. I lost $200 buying the warranty and I wasn’t upset. Got a rebuilt transmission and a few front end repairs covered.