Mechanic’s View of Aftermarket Car Warranties
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- เผยแพร่เมื่อ 18 พ.ย. 2023
- 4 things no one is talking about when considering an aftermarket car warranty.
01:12 Reason #1 - Much Longer Wait Times For Repairs
06:29 Reason #2 - Diag & Denied Claims due to "Uncovered Parts"
10:03 Reason #3 - Predetermined Price on Labor & Parts
16:23 Reason #4 - Cost of Warranty Vs Policy Limits - ยานยนต์และพาหนะ
40 years in auto repair, and I can confirm his every remark. Take the money that the warranty costs and put in a savings account instead. When your car breaks down, you'll have some funds to pay an honest shop a fair dollar!!
That’s the theme or idea that kept going off on my mind as I listened to this video!!
The pre-purchase inspection is the warranty.
"WE'VE BEEN TRYING TO REACH YOU REGARDING YOUR CAR'S EXTENDED WARRANTY..."
And they specifically refer to a car that was totaled in 2017. Persistent SOBs.
These are the same people who got my 40-yr dead grandfather to vote in the last election.
When I buy a new car, usually a Toyota, I really enjoy the visit to the financial guy and just say no to the 5 or six items on their pressure sales checklist, usually with a slight smile. I've been buying cars for over 50 yrs and have done 80 % of all my own and my wife's car maintenance. 😂
😂😂
@@andrecampbell691 What some people don't realize is that you don't have to buy an extended warrantee from the dealer you bought the car from. If you want to get an extended warrantee you can go online and find dealers who sell the same Manufacturer's Warranty for much much less less. Also, you have up to the the original warrantee expiration to purchase the extended warrantee, so you have lots of time to shop around.
I tried to convince my friend not to buy a warranty, but he did it anyway. The celebrities promoting these products should be ashamed of themselves!
Well, ya gotta realize that some of them have gone broke from buying N.G. extended warranties on everything in their mansions...
You mean Car Shield, I can name them since I have made not claim as to their service but I can not even think of a secondary one on broadcast ads. Others just use mail.
Ice T and Vivica Fox are terrible.
Paid for acting... Don't blame them. DO YOUR RESEARCH. Don't buy these rip off policies.
Now that you mention it. I feel Tom Selleck deserrves head of the line to Hell for pushing the reverse mortgage scam to gullible senior citizens! Many of these people are all alone, and have nobody around them with the normal cultural skepticism and emotional defenses against scammers and crooks!
I own a small shop in Ohio. I decided to deny warranty companies years ago now for all that you discussed.
For 5 years I worked on the other side of this. You are bang on point. I will not bore you with the details, but I'll tell you that after 5 years I could no longer live with it and left. We were instructed to go thru the claims and the contracts to find a "legitimate" reason to not pay out. In my case, the "warranty" was actually a mechanical breakdown insurance. Insurance companies, like casinos, always win.
For anyone reading this, avoid it. You're better off putting that money away for when your car needs a repair.
It makes sense to save the money in an expense account. At least if you don't use it, it's money you still have and not money gone.
Absolutely. On. Point.👍
The House always wins. Never forget.
By that logic, might as well by Hunger Insurance and then file a claim every time you're hungry.
Imagine the red tape, delays and cost associated with every meal, all costs built into a stupid Hunger Insurance policy, plus more for marketing and profit margin for the insurer☺️
Imagine how many families you systematically screwed over in those five years. If you live another 80 you'll never be able to undo the damage. But hey kudos to you for at least stopping.
@@LPMutagen This is where the boring bits come in. When I started the company was actually losing money, fraudulent claims were rampant, and the company was actually pretty much paying out almost everything under the sun. When I came in, I reigned in on that, but always with 100% honesty, which I was until the day I left. On my 3rd year we had a change of GM, and that was when things started to change ever so subtly, but I didn't see it at first. It was on my 5th year that things were becoming obvious, and I stuck to my guns with regards to fairness and honesty. Things started to go down hill from there. Also, the policy holder/beneficiary was the used car business, not the vehicle owner (hence the rampant fraudulent claims). The vehicle owner was always protected by law, the used car trading business must, by law, give a 1 year warranty on the vehicle. If any families were hurt, it was by the used car lot business. Finaly, our own agents/sales people were selling the product to the professional traders as a "Warranty" proper, not explaining it was in fact a mechanical breakdown insurance policy, with a specific coverage clearly and thoroughly explained in the booklet (but of course, no one ever reads these things). FWIW, my conscience was, and is, always clear. I cannot vouch for how things were done after I left. I hope this clears things up a bit.
@@donswierThat's an eye-opening illustration!!! 👍
I was a career auto tech (40 years) and small shop owner , spot on description of what to expect , I always told my customers don’t buy the warranty but put the cost of it aside to use for future unexpected repairs. Nobody ever complained.
right
I would save too much, why, I drive a Toyota not some BMW POS.
Ice T is a scum bag!
This is the reason why I never waste money on extended warranty. Brother, I commend you for taking the time to put this information out there. God bless!!
The home warranty business is a rip off as well.
@@twoody9760I had one and they replaced the central AC and a hot water heater. I am so far ahead of the policy cost, it saved me a ton.
I mostly just buy a Toyota, I never need to fix them, OK rarely. It pretty much only sees a shop to swap out oil and I might start doing it myself since it never needs anything else. Especially my world's most boring car.
@@toriless you should visit a Toyota dealership's shop....they aint sitting around or changing oil FWIW and are busy . They have issues too....some more than others...but they do
I've never bought an aftermarket warranty. Knowing how much commission the salespeople make on these was enough. This is an excellent overview from a mechanic.
Yup. The dealers buy the warranties in bulk, (around $40 each, for a stack of them), then sell them to customers for around $5K. Profit MAXED. They prey on our wishes for "peace of mind", regarding such large purchases.
I was a service advisor for 15 years. You are right on target. The prime objective for the service contract company is to find a reason to reject the claim, not to service their customer.
I recommend vehicle buyers to take the money they don't spend on a service contract and place it in savings. If a repair is needed, you will have money for it. If no repairs are needed, you have a stash of money to treat yourself to something special.
Same for any extended warranty on anything.
3k for example is not gonna cover a trans replacement or engine replacement. I dont really understand this a approach.
@@teddward9550 Buying a service contract on ANYTHING is a gamble. How is your luck? Don't think that submitting a claim on a service contract is a piece of cake. If your vehicle has a COVERED major failure, the contract company will search for a replacement part at a junk yard (read the fine print). Doesn't that boost your confidence? I still say - save your money!
@@teddward9550 How about buying a car with a low likelihood of needing a transmission or engine replacement? How about spending a couple hundred dollars to service the transmission fluid every 50k miles and making sure you increase the life of the transmission exponentially? There are several things you could do before jumping to getting an aftermarket warranty.
@moshet842 planned obsolescence and auto engineers have entered the chat. Whether it's Nissan's CVT transmission, kia and hyundai engines over 150,000, internal water pumps, ford's ecoboost... I can go on and on. Almost every manufacturer have produced bad designs that fail. The biggest problem now, is that labor rates average $150 - $200 per hour. Look up the percentages of consumers who have emergency savings and you will see why it's not just as easy as saving the money
I spent $2500 on the Carmax warranty. by the time I was done with my four years Carmax had put in about $15,000 into my truck. No extended time at mechanic shops and never had a single repair declined. It actually became a thing where taking my car to the mechanic was a chance to have my car thoroughly gone over and anytime they found something that could possibly be worked on. They got it approved and it was repaired or replaced. So maybe not all warrantees are the same but the warranty from Carmax was wonderful.
For you, I am willing to bet the guy working on it lost money on his flat rate pay, but what do you care?
This post brought to you by Carmax.
@@franktarant3947I owned a shop and allowed mechanics to work flat rate or hourly. At least new guys would always go hourly. I also adjusted flat rate in my QuickBooks to document unforseen issues that adjusted actual repair times.
Didn't Carmax just go bankrupt ??
Had a customer with a Raptor he puts a ton of miles on. We didn't sell the truck or the warranty (CNA). He got 15k out of the warranty at our shop the first year he had it and they NEVER gave us any issues or sent an inspector. He's currently sitting around 21k in repairs total at our shop and still, one phone call, fix it.
Everyone needs to hear this. Warranties add time to repairs, and there are still things you have to pay for. YES, all shops should charge for diagnostic time no matter what. Technicians should not work for free. Shops are expensive to run. Diagnostic equipment, software subscriptions, and training all come with a price.
Too bad half the time they are wrong. And when you come back with the same issue they want to charge you for a new part and labor. It makes no sense. They want to charge 2 bills for the same problem when it was supposed to be fix the first time.
@@WhiskeyInspektaexactly! Auto shops charge ridiculous prices. They charge for a diagnostic fee, but that doesn't mean they actually know what's wrong with a vehicle. They are parts changer's. I was at a place the other day and a lady picked up her car. She got a oil change- so oil and filter,
Oil pan gasket and a new injector.
Which probably took all of 2-3 hours depending on if you have to take off the intake or remove the engine mount and push the engine up a little bit to get the oil pan out.
This lady got charged over $1000!!!
I couldn't believe my ears when I heard that guy at the counter tell her how much it cost after saying what was replaced.
I just paid a vet $200 just for the diagnosis on where to do a $400 procedure. Seems excessive but they certain deserve a majority of it.
@@mattburns2968 Say 3 hours at 150 an hour = 450.00 full synthetic oil change and filter say 65.00. The cost of the parts and labor for the replacement fuel injector part can range from $100 to $400. Do the math - - What type of vehicle?
Reasons:
1. THEY are a rip off.
2.They ARE a rip off.
3.They are a RIP off. and finally..
4 They are a rip OFF!!
Haha hey man no spoilers 😂
Yea I let it go
Only 4 reasons? I think it might still be worth it
Your being ambiguous, can you please clarify 🤣
SPOT ON CORRECT 💯
Been in the HVAC business for decades and have refused to get involved with companies that provide home warranties, for all the same reasons you list. Thanks for telling it like it is. Wish your shop was close to us.
I think if the repair shops formed a co-op of sorts and then sold their own after market warranties everybody would be financially ahead. It would work like collision repair where the insurance co-op would take an educated guess at the problem, predetermine the amount they're willing to pay, and the repair shop could decide whether they are willing to take on the job. Part of the premium would be paid by the participating repair shop and the major portion would be paid by the vehicle owner. This way, everyone would have a dog in the fight.
Zurich aftermarket warranty has been great for me. I pay my 100 dollar deductible and they have yet to deny any repairs. It was 3,000 dollars for 3 years and they have paid out 12,500 dollars it warranty repairs on my 2015 Jeep Grand Cherokee. Radiator, New Transmission, Air ride compressor and valve block assembly, air ride control module, motor mounts. Great company to work with. Granted I very mechanically inclined and literally look for reasons to use my warranty. I want as many new parts replaced within my warranties time frame. I have yet to pay for a warranty and not received more in repairs then the original cost due to looking for issues to use it. Don't wait for something to fail. Search for things that go unnoticed and cash it in.
Buying a Chrysler product will guarantee you'll need repairs !!!
The previous truck I bought was a 2018 Cadillac Escalade. After 20 plus visits to the dealer, vehicle still under warranty, plus I bought their platinum extended warranty too, I gave up and sold it. I got most of the extended warranty money back after a lot of arguing, insisting, emails and many months of waiting. Had it less than 3 years. Next truck, Lexus GX 460, negotiated the vehicle, no dealer fees, tags title, registration and tax. It felt soooooo very good to say no to everything else! Soon coming up on 3 years of trouble free ownership, just maintenance. Really enjoyed your perspective on your business and the way you have to handle these companies.
If you buy the warranty, buy it from the dealer who sells you the car. Take the car back to that dealer for the repairs. This has worked for me, so far.
This man speaks the truth. Do not waste your money. It has gotten to the point where I just tell people I don't deal with extended warranties. One example, a lady came with a Buick Lesabre. The engine would not turn over and appeared to be locked up, but it was actually just the A/C compressor. Her "warranty" had a $100 deductible, did not cover fluids, didn't cover tax, and the rep told me they wouldn't cover a new or reman compressor and wanted to ship me a used one. In the end they ended up paying just over $100 on a $500 bill and she left with no refrigerant in the A/C because she didn't have the extra money to cover it.
a BUICK, I want to barf, who would buy such junk!
@@toriless women who have no clue about cars😂
Whenever you buy a car at a dealership they push these vehicle maintenance warranties like crazy. There are super high margin for a dealer to sell. They tried to sell one to my son when he bought his first nice car. I explain to my son that the woman giving you a personal anecdote about how great the warranty is is a salesperson, and what she says to sell you the warranty is not binding. Once you buy that warranty and she gets a big commission, you're on your own. All these warranties like American home shield home shield are never worth the money and it usually takes people a couple of times of getting screwed to figure it out.
I am convinced that there is case for a class action against aftermarket warranty and home shield insurance and I am convinced that it will ruin and close forever the two biggest scams in this country. It will bring
down the price of buying a house and car, save thousands of dollars
to owners and probably put out of
business all those crappy, scammers, straight up thieves that call themselves Realtors and Car dealers.
Read one, I got them to show me one, the not covered list is pretty much every expensive part to replace, shocks covered, transmission not, mirrors covered, engine block not, ignition button covered, infortainment not, you see a pattern.
Thank you. Well done. Never had aftermarket warranty and now confirms I never will. Great topic, first time for me. Appreciate it. Thanks again.
Thanks for the support! 👍
I had one on the house but it was the basic one. Those cover jobs that are quick to repair so you will find people willing to do the repair. Say you dishwasher panel goes out. He looked at it about a minute, ordered the part and once arrived spent less than 5 minutes replacing it. That part alone costs more than the first years rate. I was glad I had it.
The world needs a whole lot more people with your level of integrity !!!
I just got Walco aftermarket warranty and when I was buying the warranty they game me a 30 day money back guarantee if I changed my mind. Well looks like I’ll be getting my money back because if my car is going to be sitting In a shop for two to three weeks I’d just do the whole thing myself or find an honest shop that I can trust and is passionate about their business and customers.
Thank you for your experience, expertise about this situation/subject!
Good luck.
My car dealership forced me to buy aftermarket warranty and I canceled it on 30 th day and refunded fully. If you cancel it after 30 days you will only get less than 100% of what you paid
They will do everything possible they can to not pay out. Guaranteed. DO NOT BUY EVER.
Yeah, very few step up
@@ShadetreeAutomotiveLaytonWhat few are actually worth the hassle? Any thoughts on Endurance vs CARCHEX?
@@BiloxiBlues07no matter what avoid Car Shield
@@ShadetreeAutomotiveLayton Are you attached to a dealership? If so, have you had any issues with the third party extended warranties the dealership sells?
No to Endurance
Car Sheild is a scam!
It’s like coupon club more like it. My customers that have it I usually tell them to get rid of it or pay the difference for the better quality part. They’re terrible.
Exactly especially if you see vivica Fox in the Ad that's a screaming red flag.
Not a scam. We all have to read fine print and choose whether to agree to a service or deny.
I agree Car Shield screwed me out of roughly 4k outta my pocket because they denied my claim. Withing 10 minutes after the adjuster left the shop.
I work in consumer electronics repairs, and we hate it when a customer says they took out
and aftermarket warranty.
Even in warranty repairs can be a nightmare, you have to use oem parts but they refuse to pay
a reasonable amount to cover the time involved in finding the fault and then if approved the time to
replace the faulty part and test the item.
Then customers think we are trying to overcharge them if the claim is refused.
Yeah, they have to cover parts but short you on labor. Home ones do that too. If it is a appliance those a are quick part swap but furnace replacement can take days, wooden flooring can take weeks. Not all jobs are equal regarding labor.
I noticed the algorithm has changed somewhat Smaller channels like yours are now showing up in my feeds and the million plus channels have been pushed less to my feeds. So I liked and subscribed
My guess is you are watching more channels about cars. I can guarantee it was suggest since I have been watching The Car Care Nut lately in addition to Scotty "waving hands" Kilmer.
It is how TH-cam works Watch Paquito or Jackson Galaxy and it suggests Ginger the Spoiled Cat. Watch PBS Timespace and Neil Degrasse Tyson shorts pop up. Watch Vincenzo's Plate and Uncle Roger pops up more or vice versa.
Watch Brian Taylor Cohen and Meidas Touch starts getting suggested.
I forgot how I was steered to Scammer Payback.
It is all but general subject matter. Which sometimes gets moire specific.
Watch an Ava max video, guess what, it suggest other Ava Max videos, she is so hot, but I digress.
If I buy an extended vehicle warranty, it’s always from the vehicle manufacturer, that is Ford, or GM, etc.
Thanks for the honest report on after market warranties.
For sure! Thanks for your support!
Yes...I'm getting a Mopar (my 3-year OEM/factory warranty runs out very soon). NEVER would go with an aftermarket/3rd-party extended warranty.
-- BR
Agreed. But you have to be careful, there’s a Honda dealer by me that’s selling “their” warranty as a factory warranty. Only good at their shop. Scamming b*stards. I forced my daughter to buy a factory warranty on her pre-owned car because it was in an accident once already. She wasn’t happy but my policy if I can’t self-insure I’m buying a factory warranty. Yeah I know it’s pure profit for them but like all insurance it’s a crap shoot. If it was new, I would’ve passed on it.
@@JimAllen-Persona Well, made sure mine was a Mopar (OEM/factory) extended warranty (aka: service contract, aka: vehicle protection plan), but I got the best deal in-person at a local Jeep dealership: Mopar Maximum Care, 5-year/85K miles/$100 deductible (expires mid-April 2029) for $2245 -- $100 over dealer cost ($2145). Mopar is financing it (I wanted a 12-month term, not 18) @ 0% interest, no $$ down required and no "admin fee" like the online sources. I've heard some dealers do $50 over cost, but that's okay -- I'm fine with the purchase and it was a local dealer purchase.
I agree though the almsot all auto dealerships try to get you any which way but loose, don't they -- one huge reason to research what you want to buy and not let them do any "creative financing" whatsoever. Or as you pointed out misrepresenting their products.
-- BR
(2021 Jeep Gladiator Rubicon)
@@billredding2000 I have the Lifetime Maxcare Mopar warranty (no longer available) on my 2015 Wrangler Rubicon I bought new in 2014. Not one thing has ever gone wrong with it, and I'm not complaining. But I'm in my 40s and plan to live a lot longer. 🤣 Went with the 8 year (longest available) Maxcare on the wife's 2019 (bought new 2018) Grand Cherokee. It's been flawless to this point but the radio screen is starting to delaminate. Still works but looks bad. That'll be covered and I'll have broken even on the cost of the warranty once that happens.
I surprisingly had an okay experience with a warranty purchase I made 6 years ago. The engine and transmission ended up having fractures on the block, and the transmission case. I had receipts of all work done on car. Long story short, I had a new long block and a new transmission from factory. I paid $1900 for my warranty. It was as if the car has 0 miles again.
6/1/24 - Thank you for this outstanding vid
Yes I nearly in the past bought into
Aftermarket vehicle warranty
For reasons red flags raised as I hear the horror stories
Just as you explained
- 100% diagnosis mandatory
- Lengthy time approval frustration
- 3rd party inspection
- Not all parts covered, especially cascading failures if the failed part isn't in the warranty
You spoke to the all and all of be weary ...
Thank you once more
that depends on the warranty. i had a comprehensive AAA warranty that was bumper to bumper and covered my VW Passat timing belt failure. My Subaru gold plus warranty has already paid for itself and my primary reason for purchasing it was to cover the CVT transmission
I was the Ford Warranty Clerk at a Ford Dealership before becoming a Service Writer. The first time I had a repair covered by an after market service contract I called the company and told them the transmission needed to be replaced and gave them the cost. Their rep said, "Okay.". We did the repair and I called them again. The rep said, "It was Okay, thanks for letting us know, not Okay, do the repair." I chopped every thing I could, including charging labor at the rate we paid the tech." The Car owner was extremely upset at the cost because the company told them I was overcharging them. I was fired the next week.
I'm retired from medical laboratory management and can assure this exactly what medical insurance does to providers. Drives up costs as they employ people to figure out ways to not or to delay payment. This forces the provider to have employees working to get paid
This was my first thought. Once the costs go up and the time is lost, there is no going back. People will eventually need insurance because they will not be able to afford the inflated costs.
This is EXACTLY why all Medicare Advantages are a scam, they are government paid HMO's, you give up all your rights under medicare for a free taxi ride and when you a pacemaker they deny you. Under Medicare the doctor decide but not under "Advantage" which are 100% scams, ALL OF THEM. You might see plans called Duel Complete, same scam different name. If you anticipate having possible deductible issues get SUPPLEMENTAL, and which plan type fits you, it is legitimate and regulated unlike that Advantage BS.
Eye opener! Very well done! I don't think there's any any questions left somebody would need to Ask lol. You literally covered every single aspect of an aftermarket warranty claim from the moment a customer hands over their keys & explains to you their complaint or concern . Then to diagnosing the cause to later if all goes well, complete the final of the 3 C's by having As many issues as possible. I worked for several years as a heavy truck and trailer technician after going through secondary school and post secondary school taking automotive courses because I've always been inquisitive and didn't have the means to it have my vehicle repaired. so I never knew exactly what it cost to run a shop or how much the hourly rate was because I do all my own work on my vehicle and small engine power tools that I have. Needless to say I've been fortunate enough to have the luxury of not receiving a service bill for my vehicle repair. Since I was 10 years old, I've been taking stuff apart and learned a lot on my own as well as with schooling and of course, TH-cam . Enjoy failing 2 L succeeded as much as I enjoy getting something right the first time because if I were to get something right every time, then I would only be learning one lesson or when I make a mistake I learn twice as many lessons what didn't work and what did work! To this day I still get a natural success high when I fix something no matter how long it takes? I will figure it out and I will get it done...It will work as good as new, if not better. Thank you for opening my eyes and giving me perspective from a shop owners point of view in really easy to understand scenarios with real world costs involved. I no longer want to ever run a shop after listening to your horror stories. hi to Wood cringe if I had to phone a customer or eat $300 of a bill I don't think I'd be able to sleep at night for that reason I think I'll stick to fixing vehicles or at least keep building them for now and a small shop on my own When I retire.
I can personally testify that this happened to me with the purchase of a Security Camera System at Wally Mart, ($759.00) I purchased the 3year "Extended warranty" furnished by Allstate under the SquareTrade Name" which turned into a NIGHTMARE! Two cameras failed and were replaced. Upon the failure of a Third Camera, SquareTrade refused to pay/replace for the Third camera, citing the EVIL Excuse that repair costs for the Two Cameras; $358.00 & $368.00 respectively SURPASSED the amount of coverage! WHO, in their Right mind would spend this amount of money for; "REPAIRS"? These Cameras purchased separately cost $45.95 EACH...Less than $92.00 THIS IS INTENTIONAL AND EVIL! Needless to say, I have filed a complaint with the FTC, OAG, BBB which at present deserve to be a Class Action Lawsuit against them. Obviously the hands on Allstate's logo should show a middle finger pointing up!
Sometimes you get an extended warranty if you bought on a credit card. Try going through the credit card company.
@@lopesphoto I did purchased it with my Credit card and don't see any problem with that. The problem is the EVIL trick many companies use in trying to fulfill their obligations.
I bought a microwave oven at WM and paid the $5 for the extended warranty. Within the warranty period, the keypad failed. One of the columns stopped working. I submitted my claim to Allstate. After a few months, they denied my claim (they cancelled my original claim and demanded I submit it again.) The "extended warranty" companies are evil parasites.
SquareTrade is a rip-off.
I'm in Canada & bought a used 17 Sierra that came with one of those warranties,I didn't pay for it.. It was a 1 year warranty..10 months into the warranty,#4 developed a misfire..Took it to a shop I knew of, worn cam lobe..The warranty did cover the $5400 Cdn dollar repair..I had to pay for diagnosis,oil/filter,spark plugs,head bolts & gaskets which came to $380..I thought after reading negative reviews over & over on the company,I was gonna be screwed somehow..I didn't get screwed,nor would I ever purchase any aftermarket warranty personally..
I had a similar thing happen to me. Except I paid for my "warranty". Got a used truck about 10 months in the truck got a code for timing. Needed a timing job. Cam phasers, vvt solenoids, timing set and water pump. Ended up costing me like $650 because they wouldn't pay for the water pump and a few small things and taxes, but they did pay out over $3500.
Well, it was a poor choice, was you next car a Fiat? Anyone who but domestic brands gets what they deserve, unless it is a F-150, not F-250 are F-350. A fancy F-150 sure but all other Fords are crap.
I had an after market warranty in the past. My power steering pump reservoir was low so I refilled it. A few months later I took it in for service and it was low again, the service center refilled the fluid. I took it in for the next oil change and again it was low. The service center recommended replacing the pump. We submitted it to the warranty company. They denied the claim saying I was negligent because I continued to drive the car after I noticed the fluid was low. That was the last after market warranty I have paid for. They are worth less than the paper they are printed on.
I had the same problem. I just bought 1 gallon jugs of and saved up until I could pay cash to to have the entire front bushings and worn steering parts replaced.
Power steering fluid washes off the drive whenever it rains.
Took 10 ten months and I paid $1400 to have steering rebuilt.
But it was a bit easier than doing myself.
My sister in law also convinced my wife I did not need tools and a air compressor in the garage. Wife also did not know about the savings account.
Once upon a time I rebuilt transmissions and engines.
That was how I paid for my engineering degree.
You shouldn't have revealed that you filled up the power steering pump. There's no way they could have known.
@@dannydaw59 The service station communicated with the warranty company. I don’t know if they told them or not. Either way it would have been in the service records.
Probably just a bad hose or clamp, pumps die but do not leak, often, well unless built by Stellantis since their brands are all junk.
Thank you for sharing these tips!
I never fell down for these spam like calls and mails about auto coverage.
I had a warranty company replace an ac evaporator but they wouldn’t replace the receiver dryer stating it was a maintenance item, after the extended warranty expired, I had to replace a failed receiver dryer on my own. In the same vehicle I had a failed cv boot, the warranty company denied the repair stating that the cv boot was covered under the manufacturer’s power train warranty. I had the service advisor send a copy of my owners manual stating that cv boots were specifically excluded undue a power train warranty. The warranty company reluctantly paid for the shaft.
Great video, Tom -- thank you for presenting this material in such a credible manner. Extremely valuable.
Glad you enjoyed it!
Excellent, excellent explanation. It's hard, when you have the bill in front of you, to understand why some amounts are so high for maintenance and repair, especially if it's a major issue. It's sometimes a very hard pill to swallow. The candor and simplicity in your explanation is refreshing. It's hard for most customers, even me sometimes, to understand economics, margins, profitability, and the competing interests of your shop vs these insurance companies. However, the candor and simplicity in your explanation has helped me a lot to understand, and also to respect your shop. Your explanation indicates that you really advocate for your customers, but at the end of the day you have a business to run and employees to pay, which makes perfect sense. I live a few hours north in a neighboring state and am almost willing to drive down there just to be at an honest shop. Also: I'd never buy an aftermarket warranty.
Thank you for such a nice comment! I really appreciate you taking the time to reach out- Tom Lambert- Owner
I wish I could find a mechanic like you in my area…. You really take care of your clients….
Wow, that was super honest and informative. Thank you very much for taking the time to make this video.
Just bought a 2021 Honda. The Nissan dealer automatically added a car warranty and the Lo Jack GPS system. Warranty $2500. LoJack $1495. Said I don't want either. They said the Lo Jack was already installed and that I couldn't refuse it. They continued to insist on their add-ons and their professional arm twister wasn't giving up. I persisted, I wouldn't budge. Warranty price went down to $1495. I Reminded them that while driving there we passed a dozen car dealerships that had lots full of cars. Then the financial guy took over. Insisted on the Lo Jack for my cars security. I told him that to me it's worthless and the first chance I get I would remove it. He lowered the price to $995. Nope I wasn't having any of it. So at the end of the deal he offered the warranty for $995. That got me thinking maybe. I asked to see the warranty contract to see it's exclusions. They will never do that, show you the exclusions or terms. So the same warranty went from $2500 to $995, folks that is the mark up that these guys make. I could of bought into it then, but I didn't. The Lo Jack system benefits them and the bank and possibly the insurance company. It tracks everything and most importantly where your car is if it has to be repo'd. Those clever basturds are getting the customer to pay for it too, lol. So After the purchase and after putting up with their begging. No Lo Jack and No warranty. My wife was thoroughly uncomfortable with the transaction, we get the car. When home I wondered if the Lo Jack device was still on the car. A week later I decided to look for it. Found it in 20 seconds and disconnected it. It was active yet. I think it was tracking the vehicle even though we didn't pay for it. Tells you the real purpose of the system and they want you to pay for.
Good job! The only thing I'd add for you to do is to take the Lo Jack back to the dealer, drop it on the salesman's desk, and tell them they forgot something and that they weren't getting your location data to sell either. They profit off of lies built on top of lies.
I just had my 2016 ford explorer water pump covered by my aftermarket extended warranty, 2700 job covered. Bought from a large dealer here in Wa state, glad I bought it 4 years ago and they paid the diagnostic as well. My deductible was $50.
Thanks for a great and truthful video. Extended warranties are rarely good value. The margin on selling those warranties mostly provides for the high pressure sales tactics of the F&I guy at the dealership.
Thank you so much for sharing and helping us understand the trouble you have with those warranty people (which I am not surprise)
I appreciate for sharing and hope all your customers understand what you have to go through to get their cars fixed.
I don't trust those after market warranty and never did buy them. Thank you.
Thank you for this information. Purchased a warranty from Ford with my used 1993 Ford Explorer back in the day. Transmission went out. Ford honored their warranty. Thanks God.
Yes, a "FORD" extended warranty. Way better than aftermarket warranty such as Car Shield and Danica Patrick selling another brand.
Very well put and I believe accurate. This applies to my industry as well, appliance service. We had so much trouble dealing with aftermarket extended warranty companies, just as was described here, that we refused to deal with them except for one we found to be reputable and we sold. We ESPECIALLY refused to deal with those 'home warranties' that are supposed to cover all sorts of things. WE told customers 'You pay us for the service and YOU make the calls to get reimbursed by the warranty company'!
You just confirmed what I had thought about these warranties. Celebrities promoting them are a red flag for me, I don't trust them.
Thank you for your honesty!!
This guy one of best I've found. Humble opinion 😌.
Thank you for this honesty and clarity.
This dude is incredibly honest! Thx for your presentation.
Bought a new 2022 Honda CRV in 2022. Dealer started the AM warranty. You need this as this car has countless computers. I shut it down, and said you’re wasting your breath. Much to my surprise they dropped the subject. But I agree with you it is very time consuming for you to cross all of the T and dot all of the Is. Great video and subject matter.
Nice work! Thank you for the kind comment and support!
Good info. We've encountered similar issues in the mechanical trades with home warranty companies.
We send homeowners with inquiries involving home warranties to our competitors.
We have sympathy for the homeowner, but we enjoy and appreciate our non-home warranty customers.
Great insight. Many thanks for sharing your knowledge.
I was just now looking for videos about this subject and found yours. I just learned that my 2015 F-150, which I have covered by Endurance, is going to cost me personally $745 instead of them picking up the whole thing minus my $100 deductible. Apparently, the car dealerships repair people had a similar nightmare dealing with Endurance, such as you have described in your video here. This is very sad news. I bought the extended warranty directly from Ford when I bought the truck brand new in 2015 and now of course that has expired, so I wanted to be covered and did a lot of heavy research and picked the one I thought was best. However, I'm getting screwed anyway. Hell of a thing. Anyway, thank you for this video. 😞
My nightmare was with car chex
Thanks, Tom! And Thank you Shadetree Automotive for taking care of my babies, including my latest one, since 2008.
I had an after market warranty for my old Saturn station wagon. It saved me 3 times the cost of the warranty when I bought it. I also repaired it at the dealer. I didn’t have to pay for any diagnostic stuff. The repairs were done on time and took the average amount of time to do as anyone else bringing their car in.
Had an extended warranty years ago and had a head gasket go and head gaskets were not covered. Of course that was somewhere in the fine print . Great video very informative and on point
You are so right, based on a personal experience. I had some success with a Small Claims Court claim.
Exactly what people need to know. Thank you.
Thank you!
I’m in Canada and I am sure they are the same here, your a mechanic lawyer dealing with the warranty company I learned a lot great video thank you brother.
I just bought a used car from Toyota in Manitoba . I had a opinion for a extended warranty for 2000. I had time to check the better business bureau reports on it . They where not good. In brackets it said does not cover any heat damage . So if a piston breaks . They just say it's from heat damage.
Thanks for this valuable information and thanks so much for looking out for us. You Sir, have saved countless consumers, including myself, of our hard earned money and aggravation of dealing with this issue. I was in the process of purchasing one soon, and man, am I glad to have saw this video. God bless you.
I've had a couple of after market warranty contracts. They have worked out for me so far, but it always took longer to fix things than it needed to take. I took the full coverage option (all included, except for listed items) just because of the non-covered parts being the problem with other covered parts. I normally have to wait for the inspector to show up and then have to wait for the approval.... My current Mopar Max contract for my Jeep covers almost everything, but it's still been in the shop for over 4 months this time, partly due to parts availability. So far (over the years), they have covered Engine (long block), radiator, condenser, transfer case, rear diff, all drive axle half shafts, steering rack, tierods, swaybar, alternator, TIPM, ECU, multiple other modules, mirror, window regulator, buttons, suspension parts, and more. But not the leaking tail light... It's a lemon. It would have been cheaper for them to just buy out the car.
WOW an honest mechanic, hard to find these days. But this is the truth we all need to see. Greed has gone rapid for years now and we are all paying for it. Thank you sir for doing your part to make this world better, even if our leaders won't..👍👍
I have a family member, that had an experience where the warranty company did not approve of a relatively big job, due to some specific technicalities, it actually defeated the purpose of them even having the coverage when all was said and done ✔️, thank you for the very informative and concise breakdown!!🔥🔥👍🏽
Great advice! You stated exactly what I needed to here.
Perfect amount of time to explain the point. Thumbs up 👍
I was a technician and a service writer for many years and they would deny a claim for multiple reasons like all you have explained. Everything you said is true and then some. I had to wait for a rep to come and inspect the car for over a week many times but they would cover the rental, the stories go on and on. Great job explaining the aftermarket scams.
This was extremely informative, thank you!
I've never had these issues with an extended warranty. You might just get the bottom of the barrel companies at your doorstep. Every time I've felt with a warranty, it's been my deductible and that's it. I might wait a day or two for parts, but the shop has never had the issues you describe. Maybe it's because the dealer takes care of it and not a 3rd party garage?
This does make a difference. They treat a dealer as “they know the car” and “Joe’s garage” as “what do they really know? They have to prove it”
Also service advisors at dealers know how to talk around certain things in order to process warranty claims quickly. Even factory warranty is a pain but the right advisor can push it through by saying the right things.
I take it to the same dealer that sold the warranty then it’s on them to deal with it because they made money on the sale of it and have to stand behind it. Has worked for me.
After watching this video. I’m either the most blessed with aftermarket warranty or the dealer where I bought the warranty was amazing. A few years back my wife and bought use Volkswagen Tiguan and a Passat. My Passat had the normal oil leaks and minor electrical issues every time the repair was covered. My wife’s Tiguan had the most issues I’ve ever seen. Water pump failure. Intake failure. Turbo failure. Oil leaks and then transmission failure. Every time the repairs or replacement was covered under warranty.
Great video, please make another video with more examples. It is great to know how this scammers aka warranties operate.
all spot on......exactly why my shop refuses any and all warranty company work....waiting 3 days for them to send me an alternator from a thousand miles away when for 30$ more i can get one locally
as a retired tech and 40 year shop owner i feel your pain. one of my all time favorite was the repair was more than the car was worth so they were just out all the way a round . i hated those aftermarket warranty
Agreed, prepping up front with the client is key to "misunderstandings."
Thank You for confirming what I felt about these RIP OFF warranties companys. God Bless !
Thank you for the good advice.
Being an auto technician of 41 years, I agree 100%
This was the most comprehensive and fact based reasons I have heard. I am not a fan of gambling on my vehicle breaking down by purchasing an extendend warranty/service contract. I always build a war chest. Because even if you purchase one, one day it is going to end.
To be honest in my area, many shops are crooks at best. The warranty are even bigger croooks.
You, sir, seem to certainly be an honest business owner. You are only the second person who I can say that about in my 64 years. 👍🙏👍
My lifelong buddy here in Murray, Utah runs an auto repair shop. His advice is to set aside what you would pay for an aftermarket warranty every month in a savings account. After a year or two you'll have enough to cover most or all of a repair. Great advice in my opinion.
Great Video. I agree better to save money and pay the shop for what it is worth. You can bargain too, cash may get you a discount.
One thing you could have mention Is the cost of parts. The current engineering in autos is much more refined than before .Meaning cheap after markets parts will not perform as expected. EX. My sons 2008 for fusion 5 speed manual trans Clutch started chattering when engaging. We thought it needed a new one. But the transmission mount was bad. It finally clunked when I shifted it. A No Brainer I bought a after market one on line for half price of local vendors. I remember the shop owner we worked with telling me he use only OEM motor mounts .sure enough it cured the banging for the transmission But a week later clinch chattered again. Back to Ford and for 3 times more cost that part worked flawless. Bottom line is most cars need OEM parts not in all cases Shops need to know the difference. Warranty's don't care.
Just don't buy non OEM warranties period. Never buy 3 rd party ones. Shops should not accept 3rd party warranties unless they know what they are getting into.. .
Depends on the company and depends on the vehicle, I’d recommend u find out how much before ur policy is maxed out. I paid $4k for a 2012 Audi s5 needed a flywheel, transmission and motor mount and the policy covered $12,700 and everything else was out of pocket but can no longer use my policy. In this case it turned out to be worth it for me.
Thanks you have saved me a lot of time.
Thank you! Very informative.
I left the physical therapy field for this exact same scenario,,, insurance would not allow the patient the treatments they needed…
Well now I work on construction equipment and fleet trucks and do Project Cars on the side in the garage where it’s not their daily driver yet… seems to be a happy medium for me so far.
I can’t imagine the big shops headache of all of this let alone needing to dedicate an entire employee just to wrestle the insurance companies as we had to in Physical therapy outpatient services.
yep, part of the age-old scamification/insurance-co/monopoly-co'IFICAtiON of america. We need state gvt's to stop this behavior. Ins. co's are regulated and so should these outfits be. Now health ins cannot do surprise billing in some states like my state.
Very informative. Thanks!
it's like an insurance policy that has so many things that are not covered that I would never even think of buying one. it's good that you are talking about this. it's exactly an insurance company and not an actual warranty that you might get from the dealer at the time of sale...but usually they are not worth it because the car isn't going break down until the warranty is expired....
my BMW, convertible, loving friend, bought these warranties when he would buy a returned lease BMW convertibles..
he was paying $151 a month for over 10 years over the time he had those three BMWs for repair warranty coverage..
his convertible top would not go up. Not covered under the warranty.
is automatic transmission shifter that could swap between just automatic mode or you could move the lever by hand to shift gears. Not covered under the warranty.
his power window/power door lock Control panel had some type of a fault, not covered under warranty
his driver, seat frame, Brooke, not covered under warranty
There were other little things that were not covered, but they were not expensive like these, four that I mentioned..
my friend paid over $18,000 over those 10 years for that extended warranty that he retained coverage by switching the coverage from car to car when he would get a different car over those 10 plus years..
The out of pocket additional money he had to come up with for those four repairs was over $11,000. Add that to the $18,000 he paid for the warranty that did not cover those items, plus the other items that were not that expensive that were not covered, that’s approaching $30,000 straight out of his pocket when it could have been just $11,000..
my buddy finally saw the light when he got into financial problems ..
He learned that BMWs are expensive to maintain. And that many of the procedures should, and can only be done by the dealer Service department because they have the special tools for some of those repairs and parts, such as the control unit for the convertable top, and a very special shifter mechanism, the window control module.
he also learned that those extended warranties are not just a waste of money, they are outright robbery that they do not need a gun to pull off..
those television commercials plant a seed of doubt, it’s like gangsters selling protection in the old gangster movies from the 30s and 40s with a little difference, you pay them now, and they won’t protect you later..
also
since 2000, I have bought five new vehicles for myself for my wife. Every one of those dealerships tried to sell me extended warranty on those vehicles. I got so tired of telling the Man in the office in the back that does all the paperwork, no I don’t want an extended warranty. No I do not want an extended warranty, no, I do not want an extended warranty.
every time I said that, they would repeat the dangers of not having a warranty..
my last two purchases were a car for my wife and a pick up truck for myself. Both times I learned my lesson and I told the salesman after he convinced me that I was getting a good deal and let’s go in and finalize the deal, first thing, if you try to show me an extended warranty, I’m walking out.
I could not believe that the man that takes care of all the paperwork both times after I warned them that I would walk out, he still tried to sell me an extended warranty, and I heard the salesman tell him not to press me for selling an extended warranty. I did walk out and bought my truck at another dealer. I walked out telling the salesman “I told you I would walk out if you try to sell me an extended warranty, and I left.. actually, it was a good thing for me because I got an upgraded truck for $2600 less than I was going to pay for a lower, equipped 4 x 4, pick up..
these dealers are getting desperate to shake you by the ankles for these little extras. That aren’t so little anymore.
Monty python did a skit, where John glease was explaining to Michael Palin, that the warranty has fine print that says..
“ no claim you make will be honored”
A garage owner did a video here on TH-cam. Explaining that one of his female customers car needs a flywheel. The flywheel is bolted onto the end of the crankshaft, and the transmission bolts to the flywheel. The fly wheel is a large gear.,, it has gear teeth machines all the way around the outside of the flywheel. The reason is, the starter engages the fly wheel and spins the engine over when you turn the key ..
The woman has one of those warranties. They want an estimate from the garage meaning they want to see the damaged part which requires removing the transmission and engine and separating them to get access to the fly will.. then he needs to submit the paperwork and they will think about it. With one little problem.
The fly wheel is not part of the transmission, the fly wheel is not part of the engine. For that reason, the fly wheel is not covered under warranty.
I bought an extended warranty on my suburban best thing i ever did they have paid to fix everything that went wrong with my truck no problem 100 dollar deductible took it straight to the dealership job was done right on the water pump the rear and the touch screen infotainment system
Thank you for confirming what I already suspected
Great job wish more people could see this.
I cannot imagine how you manage to stay afloat. Business is tough. Kudos to you for making a go of it.
Thank you. We work hard 👍
Very insightful. Thank you
Excellent presentation-Nothing advertised or described is EVER as good as initially represented-that goes for life in general. I live in a small town about 13000 pop. I have asked several mechanics and they will not deal with after market warranty companies for the reasons you said.
I think I got lucky. I bought 07 Monte Carlo and got the warranty. They covered every repair I needed, until I was close to the cost of the warranty. I lost $200 buying the warranty and I wasn’t upset. Got a rebuilt transmission and a few front end repairs covered.
I have Carchex with American Auto Shield Titanium option. Response and Claims process has been quick and easy. Repairs have been paid for quickly. Already had 2 claims on 2 vehicles that exceed the warranty price. Both incidents ($1500 & $3K) cost me only $100 each.
I am NOT paid by either of them.
Thanks for the insight. You got a new subscriber 🙂
So, what I got from this is that it takes longer to get the car repaired due to the administrative work associated with the claims process, which is understandable. And if you purchase an extended warranty to cover your vehicle, typically, there are levels to what the warranty will and will not cover. It would be in your best interest to purchase the warranty level that covers the absolute most amount of components so you don’t end up in a situation where the part that breaks is the part that is not covered. It