When purchasing a used vehicle you are most likely presented with an extended warranty option. Before signing up consider all your options and make sure to read the fine print.
Being in the auto repair industry, we deal with extended warranty companies on a regular basis. While these companies are certainly not the most pleasant people to talk to, they do make for some interesting stories (and lessons learned!). Some companies are truly helpful and actually cover most, if not all, of the items on the customer’s repair bill. On the other hand, some of the other companies seem more like scam artists and refuse to pay anything on the repair bill.
Below are examples of situations we have come across:
A local car dealer (new/used/certified) had sold one of our customers a used car with approx. 51,000 miles on it. Fast forward soon thereafter, when he actually brings his car into our shop. We diagnose the problem and inform him of what needs to be done. Next, we proceed to call his warranty company to get the approval for the work. We learn that this extended warranty does not cover anything over 50,000 miles. WHAT?! The extended warranty was sold to the customer *through the dealership* at the same time the car was purchased. However, this dealer sold the customer an extended warranty policy (which cost approximately $3,000) that was completely null and void because the car was purchased with over 50,000 miles. But they didn’t see this policy as null and void! They explained where this was detailed at in the endless lines of fine print. Interesting. It’s sad to know that a new car dealer would actually even attempt to sell this extended warranty coverage to this customer, knowing very well that it would provide absolutely no warranty coverage whatsoever. It’s disappointing that it really is “all about the money” sometimes.
We diagnosed a customer’s car as needing several different things that included a temperature sensor among other things. So, we followed normal process of calling the customer and then calling the extended warranty company. Low and behold, the extended warranty company claimed that the temperature sensor was a normal “maintenance item” and not a failed part that needed to be replaced. They let us know that in addition, they do not pay for any fluids that needed to be added (which this customer needed several quarts), any shipping & handling, or any taxes. Thus, they would not cover anything we were recommending. Basically, the extended warranty left the customer high and dry.
Unfortunately, these customer had to learn their lessons the hard way. We recommend researching the company before actually purchasing the extended warranty. Don’t feel pressured to purchase it on the spot. You are the consumer and it is your money. You have every right to know what you will be paying for and what type of service and coverage you will receive from the company. Do your research first and make sure you fully know what is covered, what isn’t covered, and what all of the limitations are. The Internet is overflowing with information, and it is easier than ever to get this information at your fingertips almost instantly. Take advantage of it! Otherwise if you have any questions about which extended warranty companies we prefer, don’t hesitate to reach out to Rennology Motor Sport.