Extended warranty rip-off.

[ka5piu]

Hello.

A gentleman who owns a Hyundai had an incident where his engine needed to be replaced.
The dealer who he bought it from had sold him an extended warranty.
The engine was replaced under the extended warranty, or so he was told.
Later, the dealer called him up and said he needed to sign some papers, for the Houndai part of the warranty.
He went to the dealership, looked over the paperwork, looked at the copies of what he had, and said no.
The dealership decided to take him to court, bad move.
It turns out that some dealerships charge the warranty for a replacement of parts and the labor, than wait a while and charge the car company, for the exact same service, thus the delay in submitting the paperwork the second time.
What kind of crap is this?
I would call it fraud.

[KC0VWU]

I've never heard of anyone getting their money's worth from an extended warranty.

[WF7A]

Quote[/b] (KC0VWU @ May 20 2007,13:10)]I've never heard of anyone getting their money's worth from an extended warranty.
Count me as one, then. I bought the extended warranty for my Hyundai and so far, am coming close to breaking even on the money I paid for it.

You have to give credit to the auto engineers: they have planned failure rates down to a science. In my case, my '02 Accent's transmission failed at 36,100 miles--just out of range of the "normal" 36-month warranty. But, since I had the extended warranty, it was replaced at no cost to me...and I know that repair wasn't cheap.

However...

When I bought my first Hyundai (I was the third Hyundai owner in the U.S.--I ordered an Excel before it hit our shores), I was stupid and paid $400 for the extended warranty in cash. Four years later, I was driving on I-5 toward Seattle when the right, front wheel bearing disintegrated; it's not often your own tire passes you up on the highway. The repair came to $950, but when the Seattle dealer called the warranty people, they said they had no record of us buying one. It turned out that the salesman where we bought the Hyundai from had pocketed the $400 and didn't make any notation of it on our contract. So, we were out a grand to pay for the repair. (The salesman had long left the dealership--I wonder why. :S)

Anyway, the only time I recommend to people to buy an extended warranty is when they buy a laptop computer: they have a 33% failure rate, mostly due to heat-related issues. The downside of that is that you most likely will have to be without your laptop for 3-5 weeks because most retail laptop sellers don't have the techs to service them so they're sent off to 3rd-party, or the manufacturer's, repair department.

Reminds you of ham radio repairs, doesn't it?

[KC0VWU]

We used to have a Hyundai Excel, it was a great car. We put almost 200,000 miles on it in about 3 years (I was on the road a lot) and honestly I think we changed the oil twice, maybe 3 times. The thing ran like a champ. Finally we hit a deer and that was the end of that.

[KD6NIG]

Quote[/b] (KC0VWU @ May 20 2007,22:30)]We used to have a Hyundai Excel, it was a great car. We put almost 200,000 miles on it in about 3 years (I was on the road a lot) and honestly I think we changed the oil twice, maybe 3 times. The thing ran like a champ. Finally we hit a deer and that was the end of that.
I hope you were planning on not sharing that fact if the engine blew. Most of those warranties, extended or otherwise, tend to frown on "abuse" http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

[KC0VWU]

Quote[/b] (KD6NIG @ May 20 2007,15:28)]Quote[/b] (KC0VWU @ May 20 2007,22:30)]We used to have a Hyundai Excel, it was a great car. We put almost 200,000 miles on it in about 3 years (I was on the road a lot) and honestly I think we changed the oil twice, maybe 3 times. The thing ran like a champ. Finally we hit a deer and that was the end of that.
I hope you were planning on not sharing that fact if the engine blew. Most of those warranties, extended or otherwise, tend to frown on "abuse" http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif
We abused the hell out of that thing and it kept coming back for more. It was a tough little car, I'd buy a Hyundai again.

We checked the oil btw but we just never really changed it. hehe

[WB2WIK]

Quote[/b] (KC0VWU @ May 20 2007,22:30)]Finally we hit a deer and that was the end of that.
The car or the deer?

[wa8rti]

I purchased extended warranties on a Maytag dish washer and a Neptune clothes washer. Both warranties have more than paid for themselves. My first PC was a Packard-Bell and I got an entire new mother board under an extended warranty. My HP Officejet Pro 1170 scanner,copier, printer was repaired twice and finally replaced under an extended warranty. I will admit that I have had a number of extended warranty plans that did not pay for themselves. I think it is basically a crap shoot as to whether or not they are worth the money.

[KC7UP]

I had extended warranty on a 99 chrysler. Three months shy of the warranty expiration had to have need O ring in the power steering, new bearings and seals in the drive wheels, this was a allwheel drive vehicle. They estimated the cost to me a 1150 dollars before they found out I had the warranty. My cost was $50 deductible. Well worth it I say for my 800 investment. I currently have extended warranty on my 06 Chevy.
Curt

[W0MT]

Quote[/b] (KC0VWU @ May 20 2007,21:10)]I've never heard of anyone getting their money's worth from an extended warranty.
Count me as another who got their moneys worth. I bought a Mitsubishi Galant back in about 1986. While I don't remember the exact year, it was the first year for the particular model. (The name Galant had been around longer but they completely changed the design in this particular year.) This was the only time in my life that I ever purchased an extended warranty.

First the transmission went out and had to be replaced. Then at about 35,000 miles it started running poorly. I took it in and the dealer called to say that the timing belt had to be replaced. When I went to pick it up, they tried to charge me as they said the extended warranty did not apply to normal wear items. I hit the roof! I asked the dealer if it was "normal" to replace the timing belt at 35,000 miles and he agreed that this was not "normal." Then they tried to tell me that the extended warranty only applied if a part "broke." I asked the dealer that if the timing belt was not "broken," why did he replace it. I said broken meant it was not working and it did not mean that it had to physically rupture. The dealer said he would back to me later. They finally agreed to cover it under the warranty. As I recall, the cost to replace the timing belt was close to $1,000.

Then at about 50,000 miles, the car needed another transmission. That was covered under the extended warranty. Before the car hit 60,000 miles, I traded it in.

I'll never buy another Mitsubishi, extended warranty, or the first model year of anything. Once was enough!

[K7ELP]

It is interesting to me that manufacturers of automobiles add things to models to in their words,"to improve the overall operation". #In my case I am driving my 3rd Chevrolet S10 pick-up with the automatic transmission and 4.3 liter V6. #This 2003 model has oil cooling lines from the engine to the transmission. #This is the first of the three that I have owned that has these. #Typical warrantee 36,000 miles or three years which ever occurs first. #At about 30,000 miles these cooling lines started to leak oil. #So they were replaced under the original warrantee. #At 60,000 they started to leak again. #I checked on the replacement cost, about $300. #I called Chevrolet customer service 800 number and complained. #They and the local dealer worked out a deal and replaced them for me for a cost of $50.00
I didn't have an extended warrantee, but had one in the past and it never did pay for it self.

[kf6rdn]

Quote[/b] (WB2WIK @ May 21 2007,13:08)]Quote[/b] (KC0VWU @ May 20 2007,22:30)]Finally we hit a deer and that was the end of that.
The car or the deer?
Probably both.

[KC0VWU]

Quote[/b] (kf6rdn @ May 20 2007,23:46)]Quote[/b] (WB2WIK @ May 21 2007,13:08)]Quote[/b] (KC0VWU @ May 20 2007,22:30)]Finally we hit a deer and that was the end of that.
The car or the deer?
Probably both.
Yup but on the good side it happened right by a friend's house and he help me butcher the deer so at least we got some meat out of the deal.

[WF7A]

Quote[/b] (KC0VWU @ May 21 2007,13:59)]Quote[/b] (kf6rdn @ May 20 2007,23:46)]Quote[/b] (WB2WIK @ May 21 2007,13:08)]Quote[/b] (KC0VWU @ May 20 2007,22:30)]Finally we hit a deer and that was the end of that.
The car or the deer?
Probably both.
Yup but on the good side it happened right by a friend's house and he help me butcher the deer so at least we got some meat out of the deal.
So _that's_ how "Meals on Wheels" got started! http://www.qrz.com/iB_html/non-cgi/emoticons/biggrin.gif

As an aside, I should clarify that I owned the third Hyundai Excel that entered the U.S.; the same car was released in Canada a few years (before 1986) with the model name, Pony.

[KF0RT]

Quote[/b] (K7ELP @ May 21 2007,21:00)]It is interesting to me that manufacturers of automobiles add things to models to in their words,"to improve the overall operation". #In my case I am driving my 3rd Chevrolet S10 pick-up with the automatic transmission and 4.3 liter V6. #This 2003 model has oil cooling lines from the engine to the transmission. #This is the first of the three that I have owned that has these. #Typical warrantee 36,000 miles or three years which ever occurs first. #At about 30,000 miles these cooling lines started to leak oil. #So they were replaced under the original warrantee. #At 60,000 they started to leak again. #I checked on the replacement cost, about $300. #I called Chevrolet customer service 800 number and complained. #They and the local dealer worked out a deal and replaced them for me for a cost of $50.00
I didn't have an extended warrantee, but had one in the past and it never did pay for it self.
Actually, those oil lines go from the engine to the oil filter (or optional oil cooler). And they're poorly made, so they fail frequently. I've been told that you can have NAPA make a set that will last forever, but I've never tried it. We bought a '99 Blazer with 66K on the odometer and had them fail at 69K -- usually, they're good for 60-70K. $336 to have them replaced and if I recall, the parts cost is around $90.

When they sold us the Blazer, they wanted us to pay $3600 for a 3-year extended warrantee (this was in 2002). The $3600 would have been financed with the car, for 5 years, so I would have been paying for it after it expired. Didn't buy it, and was far better off without it, even on a car with a less than stellar reliability record.

I love the pitch on these things. They try SOOOO hard to make it sound like they're doing you a favor, even to the point of hauling out receipts where an extended warrantee saved some poor SOB thousands. Problem is, for every one of those, there are 20 people who are flushing their cash down the toilet. If this weren't true, they wouldn't try so hard to sell them.

I never buy them. Once had a checkout gal at BestBuy try to sell me a $4 extended warranty on a $19 mouse for my computer. Unbelievable, but it would make P.T. Barnum proud.

73, Rob

[NI3B]

I bought a Dodge back in 1993 and the transmission failed at 57k miles. The dealer said that the 7/70 warranty was void because I "did not have routine maintenance performed at the dealer". No where in the warranty papers stated that it was a requirement. I have routine maintenance performed at my local garage which I've been going to since 1981 and I had the paperwork to prove it.

I submitted the complaint to Dodge. They didn't care. Rebuilt trans cost me $1495.00.

Dodge/Chrysler = never again!

Rip me off? I don't give second chances.

I received a recall notice in 1996/97 and I sent it back to the dealer with "You really don't think a 4 year old Dodge would still be on the road...Do you?" I doubt they got the point.

Best,
Brian

[KD6NIG]

Quote[/b] (KC0VWU @ May 21 2007,13:53)]Quote[/b] (KD6NIG @ May 20 2007,15:28)]Quote[/b] (KC0VWU @ May 20 2007,22:30)]We used to have a Hyundai Excel, it was a great car. We put almost 200,000 miles on it in about 3 years (I was on the road a lot) and honestly I think we changed the oil twice, maybe 3 times. The thing ran like a champ. Finally we hit a deer and that was the end of that.
I hope you were planning on not sharing that fact if the engine blew. Most of those warranties, extended or otherwise, tend to frown on "abuse" http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif
We abused the hell out of that thing and it kept coming back for more. It was a tough little car, I'd buy a Hyundai again.

We checked the oil btw but we just never really changed it. hehe
At least you checked it properly.

I remember a woman at my tech school who came up to me one day and asked if I could, on our first break, take a look at her car. She said when she started it that morning the oil light had flickered on and off, and when she checked the oil it was low, so she had added some, and wanted to make sure that it was right. I told her, sure, no problem.

I went out on break, grabbed a rag out of my truck, and pulled the dipstick. It was dry. I asked her how much she added, and she said "I don't know, the bottle is in my back seat." I opened the door and about died laughing. It was a plastic bottle of Wesson cooking oil!

I asked her how full it was when she added it. She said about 3/4 full. I then asked her if she knew that you had to use motor oil and she said she had no idea, that her ex-husband used to handle that stuff, and now that they were divorced, she just took it to get an oil change every 5000 miles or so.

It didn't appear to have done any permenant damage, amazingly enough. It likely had just cooked off. I added enough oil to bring it to the proper level and advised her to take it to her oil change place immedietely and get it flushed and changed again.

On our graduation night when she came up to me and gave me a hug I asked her "besides electronics, what else did you learn while you were here? She blushed and said "don't use cooking oil in your engine!" We had a good laugh over it.


I've heard of people only changing oil a few times also, by the way, but thats because they leaked so much, they were adding a quart a week. Nothing like a good leak to keep fresh oil in the engine-though you probably have quite a stain on the driveway!

[AB1FV]

When a car dealership asks if I want an extended warranty, I ask them if the cars they sell NEED an extended warranty!

(Hence: Poor quality)

[KF0RT]

Quote[/b] (AB1FV @ May 22 2007,09:49)]When a car dealership asks if I want an extended warranty, I ask them if the cars they sell #NEED an extended warranty!

(Hence: Poor quality)
I've used that line, too. Usually shuts them up pretty quick.

When a salesman says (while trying to sell an extended warrantee), "We don't make any money on this," here's the stock reply:

"Well, son, you're either lying or stupid. Which is it?"

73, Rob

[KD6NIG]

Quote[/b] (KF0RT @ May 22 2007,09:35)]Quote[/b] (AB1FV @ May 22 2007,09:49)]When a car dealership asks if I want an extended warranty, I ask them if the cars they sell NEED an extended warranty!

(Hence: Poor quality)
I've used that line, too. Usually shuts them up pretty quick.

When a salesman says (while trying to sell an extended warrantee), "We don't make any money on this," here's the stock reply:

"Well, son, you're either lying or stupid. Which is it?"

73, Rob
I'd tell the guy hes pretty dumb. "The dealership I used to work for made a mint on them, and so did I!"

Might make them step a few steps back when they think you not only know their game, but played it!

[N7RJD]

I bought the extended warranty with my truck because it was part of a package that included Gap protection and a theft recovery system. This was also the condition I needed to meet to go from 2.9% to 0% interest. I figure of the three items in the package I wanted the Gap protection and if needed it would more than pay the $2000.00 cost of the package not to mention the savings I would realize not paying 2.9% on the loan.

I have always known most extended warranties to be a sham so I sat down and read some of the highlights of mine. It is more of an insurance policy than a warranty as anything you take it in for under the extended warranty requires the payment of a $80.00 deductible.

[VE1IDX]

I had a 1990 Plymouth Sundance with the 2.5 liter high output EFI engine and a 5 speed transmission. One bitterly cold morning on my way to work I was accelerating up the ramp onto the highway and the car started to bog down a bit.I down shifted a gear for more revs and started to pick up speed again. I thought it was just because the car was cold as it was after all around minus 20 farenheit.Well then it really bogged down and quit.The engine was seized solid.What had happened was that the oil pressure switch that turns the oil light on in the event of low pressure had failed.It litterly broke away from the engine and in doing so it also failed to turn the light on. The engine oil was being spewed out from the hole where the switch was mounted as I drove.There was no indication that anything was wrong until the engine quit.Chrysler said they would not honour the extended warrenty because it was my fault I drove the car without any oil in the crankcase.They would however replace the $29.95 switch that failed. Thier own "failsafe" system failed and I was the one that got screwed because of crappy design.I fought them tooth and nail just short of going to court which I could not afford to do and in the end I called the regional Chrysler rep averything but a legitimatly born white man http://www.qrz.com/iB_html/non-cgi/emoticons/biggrin.gif and vowed to NEVER EVER buy another Chrysler product again.So far I haven't and have no plans to do so. I also vowed to spread the word just how I was treated.

[KC0MIS]

I have a Dodge pick-up.
It has the Cummins engine.
A part broke on the engine.
I learned a few things after that;
A) NEVER, EVER go by anything other than the "bumper to bumper" warranty
B) Chrysler does not have a clue about how to treat a life-long customer
C) Never buy a Chrysler product again.
This I learned for the cost of a $40 (plus labor) part.

73,
Chuck

[K3RRR]

I usually don't get extended warrantees on anything.

When I purchased my MAC notebook my wife talked me into their service plan. I did not like it, but to keep peace I did it.

About a year later the display started going bad. They had DHL deliver a shipping box to my door on a Saturday.

Monday I dropped it off at a local copy shop around noon.

Believe it or not - that Wednesday just before noon FedEx returned it to me....

My PC policy, not extended, says it takes at least three weeks before they will even look at it...:angry:

Overall, I don't like the extended warrantees they offer.

[WF7A]

Quote[/b] (KD6NIG @ May 21 2007,23:09)]I remember a woman at my tech school who came up to me one day and asked if I could, on our first break, take a look at her car. She said when she started it that morning the oil light had flickered on and off, and when she checked the oil it was low, so she had added some, and wanted to make sure that it was right. I told her, sure, no problem.

I went out on break, grabbed a rag out of my truck, and pulled the dipstick. It was dry. I asked her how much she added, and she said "I don't know, the bottle is in my back seat." I opened the door and about died laughing. It was a plastic bottle of Wesson cooking oil!

I asked her how full it was when she added it. She said about 3/4 full. I then asked her if she knew that you had to use motor oil and she said she had no idea, that her ex-husband used to handle that stuff, and now that they were divorced, she just took it to get an oil change every 5000 miles or so.

It didn't appear to have done any permenant damage, amazingly enough. It likely had just cooked off. I added enough oil to bring it to the proper level and advised her to take it to her oil change place immedietely and get it flushed and changed again.

On our graduation night when she came up to me and gave me a hug I asked her "besides electronics, what else did you learn while you were here? She blushed and said "don't use cooking oil in your engine!" We had a good laugh over it.


I've heard of people only changing oil a few times also, by the way, but thats because they leaked so much, they were adding a quart a week. Nothing like a good leak to keep fresh oil in the engine-though you probably have quite a stain on the driveway!
Makes you wonder that if it were a Fiat she would've used olive oil, instead.

...but at least she had the presence of mind to put some kind of oil in: when my mom bought her first car back in the early 1950s, she drove it for a while until, one day, she was cruising along and the car stopped dead in its tracks. Luckily, she was near a restaurant so she called the local gas station to come get the car so they could repair it.

After the car was brought to the station one of the mechanics pulled out the oil dipstick: it was bone dry. He scratched his head and said, "Lady, when was the last time you put oil in the engine?"

My mom knitted her brow and with a puzzled look, said "Oil?"

[WA5KRP]

Quote[/b] (KF0RT @ May 22 2007,11:35)]When a salesman says (while trying to sell an extended warrantee), "We don't make any money on this," here's the stock reply:

"Well, son, you're either lying or stupid. #Which is it?"

73, Rob
That does it for me. From now on, I'm buying a warranty.

Screw warrantees.



WA5KRP
Texas

[KE4FES]

Quote[/b] (WA5KRP @ May 22 2007,22:50)]Quote[/b] (KF0RT @ May 22 2007,11:35)]When a salesman says (while trying to sell an extended warrantee), "We don't make any money on this," here's the stock reply:

"Well, son, you're either lying or stupid. #Which is it?"

73, Rob
That does it for me. #From now on, I'm buying a warranty. #

Screw warrantees.



WA5KRP
Texas
http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif Isn't it great how "little things" can please the adolescent mind !


hi hi , CHARLIE

[n2ize]

What's with these consumer electronics and applicance stores where the second you walk in some salesperson races up to you and then hangs on to you like a vulture ? I find that so darned annoying. And short of locking the guy in the nearest refrigerator you can't get them to leave you alone.

One guy was so annoying that I walked out of the store and I told him why. Do people put up with this lack of manners ? What happened to letting a customer browse around and decide for himself what he/she finds interesting and THEN calling over a salesman ? I find these places to be extremely rude and they seem to be everywhere these days.

[KF0RT]

Quote[/b] (WA5KRP @ May 22 2007,23:50)]Quote[/b] (KF0RT @ May 22 2007,11:35)]When a salesman says (while trying to sell an extended warrantee), "We don't make any money on this," here's the stock reply:

"Well, son, you're either lying or stupid. #Which is it?"

73, Rob
That does it for me. #From now on, I'm buying a warranty. #

Screw warrantees.



WA5KRP
Texas
Got me. I stand corrected. http://www.qrz.com/iB_html/non-cgi/emoticons/biggrin.gif

73, Rob

[n2cfj]

The only extended warranty I ever had was on a 94 Dodge Caravan. At the time you had a choice between a 36 month bumper to bumper and a 7 year drive train. Since I keep cars forever I opted for the 7 year. After the 36 months was up, I had work that should have been covered under the drive train warranty. Turns out that the dealer, when they sent in the paperwork to Chrysler, set up the 36 month warranty despite what all the paperwork said. After showing them my copy of the original paperwork, the dealer bought an extended warranty to make good on it.

Just yesterday, I was on the phone with the service manager at my current dealer on the 05 Caravan. They were trying to correct a problem under the current warranty which is about to run out. He told me that he has some limited discretion at the dealer level to extend warranty coverage past expiration. If a trans goes at 36,100 miles, push the dealer to get it done under warranty. If they are not double dipping, they shouldn't care wether you or the manufacturer pays them for the repair.