Joker

I personally would pass on any warranty that you have to pay for through a dealer. These are marked up several hundred percent and are designed to provide pure profit for the dealer. I would bet $100 that the cost of that warranty to the dealer is maybe $200, and he makes that back the first time you bring it in. This dealer is gambling that your car doesn't break during that time frame, and this warranty will not cover "wearable items".

Another_User

I did a warranty on my car when I bought it. But only because it was GM certified, and the warranty was through GM for 3yr, 36k miles. They made out with the money, but I slept a little easier for 3 yrs.

Green Thunder

iTrader: (11)

Extended Warranties:
Most, and I mean almost every dealer, sells extended warranties from an outside company and not their own. There are a few Dealerships that do have their own, and most of those will be administered by an outside company.

If you are buying a extended warranty, I highly reccomend that you buy a GMPP extended warranty. GMPP is GM's factory extended warranty. Most GM dealers sell GMPP and usually offer at least 1 other aftermrket extended warranty.

I would not buy a aftermarket extended warranty, period. I would however buy a GMPP extended warranty.

Here are some reasons why:
EVERY GM dealer accepts GMPP. GMPP pays the dealer the same way as the factory warranty. They actually pay MSRP for all parts which is better than the cost + 40% they pay for factory warranty. They still pay the labor at the same rate as regular warranty (which is usually less than customer pay labor rate) and they still pay at warranty labor time, which is always less hours than customer pay.

GM Dealers have a lot more flexibility and say, when it comes to getting repairs covered by GMPP. Some repairs do not even require a phone call for approval, only the Service Managers authorization. ALL aftermarket extended warranties require at least a phone authorization. Any sizeable repair requires an inspector to come out to the dealership and physically inspect the VEHICLE AND COMPONET that is in for repair. GMPP may require the same for Rear-Ends, Transmissions, and Engines.

Some aftermarket extended warranty companys will pay by credit card # over the phone AFTER repairs have been performed and AFTER you have signed the final repair order. Some dealers may require payment BEFORE releasing your vehicle to you. This means when your vehicle is done, you have to go to the dealership, sign the repair order and then wait until the dealer faxes a signed copy of the repair order to them, and then they actually call back with payment. This can be 15 minutes or the next day.

ALL aftermarket extended warranty companys will tell you its not a problem for payment, "the dealership can just bill us". Most dealerships will NOT do it, unless they actually sold or sell that particular companys extended warranty.
The reason is that lots of the extended warranty companies are VERY slow to pay. And some have gone bankrupt while still owing dealers money.

So in a nut shell buyer beware!

Now, what deductible should I get?
The more coverage you buy the lower should make your deductible. Example GMPP offers 3 levels of coverage ranging from a power terrain coverage to a Major Gaurd which is the CLOSEST you can get to your factory warranty. I say closest because regardless of what any salesman tells you, it does not cover everything that the factory warranty covers. It gets close, but excludes a lot of trim items.

So back to the deductible, if you have a Major Gaurd, it covers a lot of small things as well as large. So if you have a $200 deductible and your window switch breaks, its on you. The next week, your keyless entry key fob quits working, again its on you. Now your waterpump goes out and it costs your $200.00 deductible. Next month your passenger window wont roll down, break out the check book its another $200 and so on. $200 deductibles will eat you alive or may have you waiting on repairs that could have just been handled.

Now if you chose a lesser coverage for Power terrain, odds of a "covered repair" go way down, and so does the amount of times you may use it, therfor making it resonable to save the extra cost when purchasing it, and just pay the $200 if you need to use it.

You can purchase a GMPP anytime before your Factory warranty expires. You can deductibles of $0.00, $50, $100 or $200. The more the deductible the cheaper it is to purchase the warranty.

Sorry for the long post and hope it helps!

Shutout

iTrader: (4)

Thanks for the information. The dealer is offering a GM extended warrenty to me.The also have a powertrain warrenty for 3yrs, 30,000 for $1200 with a $200 deductable.How are these warrenty's with mods?I only have an SLP lid and they haven't said anything about it.I was thinking of getting a Magnaflow cat-back in the spring.Will the look for any excuse not to warrenty the car?I only have to the end of the month to decide.

SMOKIN01TA

iTrader: (10)

they cannot void the waranty and get away with it for a lid or a catback, but for header and aftermarket clutches and verters they can void them if you trans dies or soforth.

Joker

Walk away from a warranty, its a profit leader for the dealer, and a very expensive way for you to have piece of mind. I worked my way through half of my college ed. as a car salesman for a well known dealership who happens to be a sponsor of this board, and this was a common method/product use to increase the backend of the sale or as an additional product to the unsuspecting/uninformed. There are companies whose only business is designing these "products" to sell to dealers who them sell them to you with crazy markups, rarely are they ever used.

It's designed to provide very lttle other than a way to screw you out of money. Period. The odds of your car breaking from normal use are so slim its funny, and if you mod the car in such a way that they can reasonably prove that the mod could have contributed to the failure, they do not have to honor the warranty. You're out the money in either case.

Another_User

I think it all depends on the gamble you want to take. IF you blow then engine, then it would be worth it. If not, well they make off with the cash. It's like insurance. Everyone says it is a waste of money until you use it.

Shutout

iTrader: (4)

Well said!

Green Thunder

iTrader: (11)

Dealers or any business for that matter rarely sell something they dont make money on.




Dude, uninformed? hmmmm So anyone who bought or buys an extended warranty is unsuspecting? Might as well say an idiot?

ummm OK, Regular factory warranties are probably never used either huh? I can definately see your point, I mean why would a car break down more or have more use for a warranty as it gets older and has more miles??




There is some truth to this, but it really depends on your dealer...

I guess your glass is definately half empty!!

Green Thunder

iTrader: (11)

I agree... But you might be surprised how fast littler things can add up... 1 a/c compressor problem, a Fuel pump and a window regulator more than pays for an extended warranty, let alone something serious...

Another_User

Yeah. I went with the warrantly when I learned what it cost for repairs and parts. And at the time, I was not quite ready to go tearing into the engine. Another thing that makes a big difference is if you will be depending on the car for transportation. At the time, the car had to be reliable because I needed it to get from point A to point B.

SupahRich

iTrader: (14)

I paid $500 for my warranty, made the dealership cover the other $1000 due to them being incompetent with how they handled my initial contract with them when I purchased the car :long story haha:

Anyways, since then I've had the tranny replaced as well as a new lifter and pushrod on the #3 cylinder. The tranny was acting up a little when I bought the car, popping out of Reverse on occasion. I need to give them a call to set up an appointment for them to replace my dying passenger side window motor.

Between labor, parts and such the warranty has saved me ~ $5000 so far. I'm not complaining one bit Although my experience probably isn't the norm.

Shutout

iTrader: (4)

I am not sure what I am going to do.I would like to get the extended warrenty but $1500 is a good chunk of cash.I dont drive very much,maybe 7,000 miles a year.I don't beat on the car but that dosen't necessarily mean nothing will go wrong with it.

Joker

Glass is full again!!

Of course businesses never sell something don't make money on.

I never called anyone an idiot, that is your statement, most/average buyers are not aware of the markups and the actual worth of the extended warranty, that was my point.

Factory warranties are used, extended warranties are used, most if not all of these become invalid when trying to us them on a modded car. Do most cars break down or have a problem? of course they do. as they get older, probobly, they are machines.

I never stated that a warranty was completely worthless, only that purchasing an extended warranty was a profit leader for the seller, and MOST are not used effectively especially to a modded car afer the fact. Most of if not all are rarely used in having a car repaired. That was my personal experience

My point is that those that break down to the point of some sort of catostrophic failure are covered unless they have been modded and that todays vehicles are not going to break down as often as those of the past under normal use.

So your saying that if you go and mod your car with heads, cam, NO2, etc... and was broken during driving outside of normal usage of the car AFTER you purchase the warranty the dealer is going to pony up the money to fix a problem when they have a legitimate way to not pay for this? Show me one who will. Most if not all warranty contracts specifically state otherwise.

You are reading way too deep into this. I related my experience working at a dealership to my knowledge of these products, sellling them, and actually watching them tried to be used on a car that was modded vs. those that were not.

I watched this for years and listened to the sales managers state to us that the intended purpose of this product was to increase revenue on the sale and that they would most likley not be used, therefore retaining revenue from not being liable for the repair from a car that was modded or for one reason or another not covered under the terms of the warranty contract.

Are warranty's ever used, of course they are, is it worth it to purchase an extended warranty? No it isn't imo, the main purpose of the extended warranty is to make money, period. I was stating my opinion, not that of anyones elses. If you have a differing opinion, share it by all means, but don't be a dick about it. This is supposed to be a forum to learn and share with others, I thought...

Green Thunder

iTrader: (11)

Understandable...

Two things:
1st - The dealership makes a profit on the extended warranty when they sell it, true, but after that they are done. If the dealership fixes your car after that they MAKE money. It doesnt come out of THEIR pocket. They are selling a product. Just like the factory warranty that comes with a new car. When your car breaks down a week after you buy it, the repair is not coming out of the dealerships pocket. On a GM vehicle the dealership gets re-imbursed for the repair through GM.

Example: Alternator on a 2004 Silverado 5.3 goes out while under factory warranty, the dealership is paid .4 hours times their factory warranty labor rate & they get re-imbursed cost + 40% on the parts.

On an extended warranty its better than that.. GMPP pays the same for labor but pays MSRP on the part.

Point is, the dealership isnt loosing money by working on your car, they are MAKING money.

2nd Wasnt trying to be a "dick", was trying to be VERY clear about the way things really work... Your assesment of how a dealership tries to screw you out of repairing your vehicle cause its coming out of thier pocket, is a very common assumption made by MANY. And just as you stated even as a previous employee of a dealership, as a salesman, you still didnt understand it. You are not alone! I have run into many of salesman who thought just as you, heck half the time the sales managers have no clue how things work in service. In retrospec same with the service guys, many of them have no clue how things work in sales...

Sorry if I came of harsh in previous post, but I felt due to the "harshness" of your post it was warranted (no pun intended)!

Take Care!

BTW: What line of work are you in now, if you dont mind me asking?

99ZEOD

iTrader: (5)

How the hell did this go from a tech post to an extended warranty post?

Green Thunder

iTrader: (11)

Right here
When the person who started the thread asked!

Joker

I see your point and can understand it completely. I'm looking at this from a sales and marketing point of view and my experience in seeing these utilized from that perspective.

As for my line of work, I was a standup comedian, concert producer and television writer(NBC) for 17 years. Got into a car accident and moved back to Texas, worked at a dealership while going though college for a marketing and management degree with emphasis in business law issues. Currently completing a grad degree in psychology part time at Texas Tech, and waiting for word from AutoZone as to whether I will become a store manager for them while I continue my grad degree.

I apologize if I came across as a dick myself, that was not the intention, those who know me will state that I'm one of the nicest and laid back people around and very passionate about cars, particularly F bods and vettes. I was sharing my opinion and experience as to how this relates to the orginal posting and questions asked within

Have a great day and best wishes in the new year.

Garrett

98Z-6Speed

Think about it like a bet. Would you bet that your car is going to suffer a breakdown costing more than $1700.00 in the next 3 years? For 99% of people, you would lose that bet, that is why warranty companies stay in business.

Bank that $1500.00 and use it for repairs. It would be a good bet that you would have money left over at the end of three years.

schultzsj

iTrader: (1)

When I bought my '98 Camaro in mid 2000 it already had 48k miles on it and looked a bit rough (it was a lease car). I paid $1100 for an aftermarket (Wynn) extended warranty that covered pretty much everything mechanical or electrical for 4 years and another 48k miles (so I was covered to 96k miles). I limited my mods somewhat until then but I had stuff like FTRA, lid, suspension mods, and even a converter installed.

I had an AC compressor replaced by the dealer (I paid $100 deductible, Wynn paid $750), a new motor installed at 63k miles by the dealer (I paid $100 deductible plus $1400 to get a new rather than used motor, Wynn paid about $5500), and a rebuilt transmission at about 83k miles (I paid $100 deductible, Wynn paid about $1700). For the $1100 I paid, Wynn paid almost $8000.

Obviously a rare case but if I had to pay this much I would probably have lost the car. I thought getting a performance car covered until close to 100k miles for $1100 was a good deal - turned out I was right. I did have some problems getting Wynn to pay so I am not sure I would recommend them but they did pay after the necessary "discussions".

I now have 104k miles on the car and finally got the LT's I had to hold off on.

Steve