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Posted: Tue Dec 18, 2007 8:45 pm Subject: Extended Auto Warranty

I'm sorry if this is off-topic, but I need some feedback. Do you think extended auto warranties a good deal?
Thanks in advance for your input.

Posted: Tue Dec 18, 2007 8:49 pm Subject:

Try asking in The Pub.

Posted: Tue Dec 18, 2007 9:18 pm Subject:

I do think it is. I have one on my car. Gap insurance is good as well.

Posted: Tue Dec 18, 2007 9:42 pm Subject:

For the average person, it's probably a Good Thing if it doesn't cost too much. For me, it's not. I have an 'arrangement' with an extremely good mechanic, though.

Posted: Tue Dec 18, 2007 9:43 pm Subject:

FYI: Gap insurance? Whazzat?

Posted: Tue Dec 18, 2007 9:58 pm Subject:

I find extended warranties to be useless. Any time I've ever purchases one it was called 'bumper to bumper' but yet they've always found a way to deny my claim. Seriously, I filed three separate claims on my current vehicle, and all three were denied by the warranty company.

My last straw (fourth attempt) was that my CD player kept popping up an error and wouldn't read any CD's. I took it in to the dealer. The warranty co told me I would need to pay a $500 deposit for a new CD player, then they would have to ship the old CD player to their lab to analyze it, and only then would they consider returning my deposit. When I asked why they had to analyze it, the rep seriously told me "We have to make sure you weren't sticking pins or anything inside the CD player." I knew they would find a way to deny it, so I cancelled my warranty right then and there.

unclewulf - Your regular car insurance will only cover the "replacement" value of a vehicle. However, many times the balance you owe on the car is much more than the car is worth. In the event it gets totalled, the insurance company only pays for what it's worth and you're still stuck owing the finance company for whatever difference. GAP insurance covers the 'gap' between the replacement value of the car and the balance you owe to the finance co -- it will kick in and pay that difference so that you don't end up owing the finance co.

Posted: Tue Dec 18, 2007 10:17 pm Subject:

Thanks for 'splainin' it to me, DebtCruncher. That explains why I hadn't heard of it. I drive three-figure beaters, and only pay cash for them. The current ride is a '93 minivan, suitable for hauling kids and other livestock. It set me back $900 plus tax and tags three years ago, and I've only had one repair on it in that time.

Posted: Tue Dec 18, 2007 10:28 pm Subject:

Yeah GAP I think is mainly useful if you're buying a new car - where it's losing 1/3rd of its value as soon as you drive off the lot.

In you're case there would be no point. You probably don't even need collision coverage - your deductible would be just as much as buying a different beater.

My dad was telling me a story about his friend who only used to buy $50 beaters. He would drive it until it conked out; then he would pull the plates and VIN off and just leave it in the street wherever it happened to die. And then he'd go buy his next one.

Posted: Tue Dec 18, 2007 10:37 pm Subject:

I carry $300k liability on the van, with good medical, UIM, towing, and all the rest of that crap. Only runs me about four bones a year. And you're absolutely correct, there's no point in collision on a heap this old.

$50 beaters worth having are a thing of the past, I fear. I want it to run long enough to get it home.

Posted: Tue Dec 18, 2007 10:45 pm Subject:

I think they are good if it's with a good company. I had one with my truck and I ended up paying a little too much for the insurance and they didn't cover a couple of this that went wrong. But now that we got hubbys truck, I really like his extended warrenty, It covers EVERYTHING!!!!I read the papers and re-read the papers then asked questions BEFORE we signed up fpr it. The one we have now, we take it to a dealer and then we only have to pay $100 no matter what is wrong or how much it costs that is all we pay. The loan company required us to have that warrenty (truck payments are high) so that if something were to happen to the truck we would get it fixed and not let it sit and rot. But they also know how much Hemi's cost to repair Embarassed

They want us to take care of the truck AND make the payments to them lol.

With the GAP insurance, my credit union requires that on almost every loan they make. We got one a couple months ago for some snowmobiles (got a good deal lol) and she made us put it on them also. That IS a good idea to have and it doesn't cost much and they usually add it onto your loan.

Posted: Wed Dec 19, 2007 7:17 am Subject:

puddlejmpr - did you know it's actually illegal for a finance company to require GAP, CL/AH or an extended warranty as a condition of their loan approval? (at least it is in IL)

Not to say you're wrong if you actually wanted those plans. But if you didn't want the extra coverage, and then they denied your loan because of your refusal to buy those plans, you would have grounds for a lawsuit.

Posted: Wed Dec 19, 2007 8:17 am Subject:

I would say yes on the whole extended warranty.

Posted: Wed Dec 19, 2007 8:32 am Subject:

I am actually in the process of extending my bumper to bumper warranty right now through GM. My car is only 2 years old but I drive a lot of miles per day. To me, its a good value because of repair costs and I plan on keeping the car. This is in addition to the powertrain warranty.

Posted: Wed Dec 19, 2007 8:55 am Subject:

wow DC I didn't know that Shocked

Next time we take a loan through the credit union I will ask them when they tell us to sign those papers. Thanks for that info Smile

Posted: Wed Dec 19, 2007 4:01 pm Subject:

I bought a used "honda" with the extended warranty, thank god I did was on vacation 1000 miles from home when my water pump went out (I think it was the water pump) anyway it was $500.00 but the warranty saved my rear end...didn't have any problems with it being paid.

ladybug

Posted: Thu Dec 20, 2007 11:52 pm Subject:

I agree with puddle and that the warranty is only as good as the company who stands behind it
also the service dept at a dealership has a lot to do with it
cruncher is not alone on bumper to bumper claims that were useless
most companies will do many things to displace themselves from warranty responsibility..which is why bottom line after looking..often shipping and handling charges are more than replacing item..but cars are different..I had a situation with one company on my daughters car we bought her for college a Kia with 100,000 bumper to bumper warranty ..her driver's side mirror wire broke 3 months after purchase ..it folded in with no side view.. and center mirror was only view in car..a bit dangerous in this small vehicle...took it to service dept who stated complete door would have to be replaced and had to pay $850... was not covered under warranty and needed to be repainted ..door not in stock for months etc had to be special ordered ..kept giving run around said it was someone elses fault but theirs that it broke etc etc...wouldn't return calls...one day I finally am fed up over something this simple..I go to dealership sit my butt down in floor on main showroom and scream "Help I need the manager here Help Help!!!! Someone please help me!!!" So someone immediately listens to my story and takes me in a little golf cart to the head honcho who said to person who brought me ..why the #$%#@ did this happen when the mirrors on this model have been recalled?" So got it resolved ..now I am happy camper..but keep in mind their job is to find reasons and excuses why the warranty is no longer valid if they are a company trying to scrimp and save and compete in every way possible!

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