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I had many come to me and they are useless costing 1000 or more.
I just do preventative maintenance on my vehicle to avoid costly repairs.I had the dealer quote me for a warranty package and it covered things like KING PINS and DIPSTICK tubes? :silly:
I told him to keep it and not give me coverage… I think my vehicle should last at least three years….
I have never heard a good story from a consumer when they tried to use this… Never paid for everything they said they would…
FWIW… AAA (The Auto club) can be very hard to deal with when it comes to collecting for tows… In two towns I lived in, there was only one person each who did AAA and they said they hated to deal with them when it came to getting the money… One guy told me he would be not be working with them the next month… Too hard to deal with, too much hassle, slow or no payment…
I would like to hear a story of someone who had a good experience with Service contracts, because I never have…. There has to be a few, right?
-Karl
Technician at a Mazda Dealer here. As far as I have seen, Aftermarket Warranty companies are great. They are pretty much the only way to get jobs over $1,000 covered since the average customer refuses. We usually get jobs such as transmissions and engines covered by a warranty company more than 3 times a month, and they pay full customer pay price every time. The only downside I have seen is every time they send out and adjuster and we have to hold their hand through the inspection and explain why the part needs replaced. My positive outlook on aftermarket warranty could also be contributed to the RX-8’s high engine failure rate meaning quite a few opportunities to get 6500 out of them.
I’ve had a service contract purchased at the dealership when I got my used vehicle. These contracts rarely cover expensive components such as A/C compressors and clutch IMO. Lately there is a “Service Contract” telemarketing company calling random number telling you your vehicle is out of warranty and to press 1 to speak to someone today. These calls seem to create red flags and there are a lot of Service Contract scams running around out there.
Many of these warranty contracts also won’t cover vehicles with high mileage. Personally I think insurance companies could benefit by offering up a preventative maintenance supplemental policy for your vehicle. This would eliminate the or at least reduce the scams from ringing your phone during dinner. I have even considered forming a Preventative Maintenance protection business to supplement auto insurance or as a stand alone item,
I’ve never had the “pleasure” of buying a service contract, but it sounds to me like it’s just like any other kind of insurance, a scam. Insurance would be great if it wasn’t for the fact that it’s as far as I know the only industry that punishes you for using a service that you have already paid for.
I work at a dealership and it amazes me how many people have these. Yes, I have watched them deny claims for any reason they can. People also think that they will install a new engine/trans/rear end/ect if it breaks… no they will put a working one in, but that’s as good as it gets. They will bring in a used transmission or engine that obviously has a lot of miles on it.
What I love is how they think they only have to pay us warranty labor times, and a lot of shops will allow this. Even on that, they will try to negotiate from there. My work put a stop to that recently because our new policy is that we don’t negotiate with terrorists. We don’t waste time arguing with them either, we simply come back to the customer and tell them what they will pay after the deductible because their insurance won’t cover it all…. then let them call their insurance/warranty company.
[quote=”Jasonw1178″ post=156944]I work at a dealership and it amazes me how many people have these. Yes, I have watched them deny claims for any reason they can. People also think that they will install a new engine/trans/rear end/ect if it breaks… no they will put a working one in, but that’s as good as it gets. They will bring in a used transmission or engine that obviously has a lot of miles on it.
What I love is how they think they only have to pay us warranty labor times, and a lot of shops will allow this. Even on that, they will try to negotiate from there. My work put a stop to that recently because our new policy is that we don’t negotiate with terrorists. We don’t waste time arguing with them either, we simply come back to the customer and tell them what they will pay after the deductible because their insurance won’t cover it all…. then let them call their insurance/warranty company.[/quote]
I love the ‘we won’t negotiate with terrorists’. I’m going to have to use that.
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