You are scamming everyone Ray! You make money from your customers cars &&&&& plus YOU MAKE MONEY BY RECORDING THEIR VEHICLE in a video. Without customers permission. And you don’t pay the customers for using their vehicle. You make money of TH-cam and overpriced work from your shop. but you want to talk about extended warranty’s. Get a grip man.
Are you taking about my shop that has a lower labor price than any other shop in my area? Not to mention my pricing matrix that’s less than every shop in the area. It’s also no secret that I make content. We do t need to discuss the agreement clause on my work orders that grants permission to use their cars in said content. Get a grip man, my T’s are dotted and my i’s are totally crossed
@@RainmanRaysRepairs Typical lame troller...the "keyboard warrior" who doesn't have the guts to answer you back...just spew like a drunken frat boy on a Saturday night... XD
I worked for a warranty company and let me tell you it's the same as insurance companies trying to save every penny! They only want to approve the cheapest of the cheapest parts and only want to pay a minimum for labor costs.You're better off saving that money for a rainy day fund for the repairs in your car.
@@CodyCoyote2 Correct sometimes the warranty wouldn't cover all labor hours or quality parts and the warranty would only pay a certain amount and tell the vehicle owner "you pay the difference out of pocket" its a scam!
I'm glad you posted this video. Pulling back the curtain on some dealership shady practices is a good thing. I used to be a service advisor and was actually told no to needed repairs because they wanted the money from either the customer or the warranty company. Hell, I've been told to raise the labor cost on the owner of a dealership neighbor. Because the neighbor had the money so why not right. It made me sick to hear that.
Nailed it Ray. Scummy behavior like this from dealers, warranty, and insurance companies is shameful. Glad there are few people like you who are not afraid to tell the truth about these scammers.
I bought an 01 olds silhouette minivan in 2019 for $900 with 148k. Still going , just hit 285k🤷♂️. Even with the repairs and maintenance I’ve put into it, I’ve averaged about $85ish a month if you wanted to call it a car payment 🤣
We bought an extended warranty when we bought a Ford Super Duty. About a year or so later, one of the leaf spring u-bolts broke on a trip. We took it to a shop, they called the warranty company and the warranty company reported that they had no record of our information on file. After some heated calls to the dealership, they claimed that they were transitioning to a different warranty company when we bought the vehicle and they gave us the wrong paperwork. Long story short, we had to pay for the repairs since that dealership was either incompetent or just straight up pocketed the money. Just another reason extended warranties are a scam.
I spent 12 1/2 years as a F & I (finance an insurance manager, by far the most profitable position in the entire dealership!!!!!) at a Ford dealership, the owners asked me to sell 3rd party warranties I refused 😮 Years later while still working there the owner family were so happy I refused to sell crap 💩 Their customer satisfaction was the highest in the Delaware, Southern New Jersey and Philadelphia area out of 37 dealerships!!! Stay true to yourself, profit is not a dirty word but scamming people should have jail time enforcement 🎉
My mess. VW Passat quit. No restart. Towed 258 miles back to dealer. Diagnosis - key in the camshaft sheered and engine quit. Yes, bent valves and grenaded piston. Claim denied since the failed part (key for camgear) was not a oil lubricated part. Two years later "good faith" settlement, repairs was new used tested engine lawyer fees and $2k aggravation and lack of use.
My brother just fell into this kind of muck. He was interested in a used mini van, when he went to test drive it the check engine light came on during the test drive so the salesman said they would check it out and come back tomorrow. The next day the salesman said it was a battery problem so they replaced it, what happens when you disconnect the battery? It erases all fault codes. My brother took it out and it ran OK, it was "detailed and shiny" so he bought it, no extended warranty. About two weeks later the check engine light was on again, so he brought it to his trusted mechanic (should have done that before putting down the money), he diagnosed it as a failing catalytic converter. I think the dealer paid for some of it, but it sounds suspiciously as Ray said.
100% agree. I took a used car i was thinking of buying to an independent repair only shop only a mile from the selling dealership once.... on a $4000 car (it was a while ago) they found over $2000 in repairs needed. The dealer actually tried to tell me to buy the extended warranty and wait the 30 days and it could get "taken care of." I walked.
Certified Pre-Owned warranties that are backed by the MFG are good, they are essentially an extension of the factory warranty. The next up are the warranties that are extended but also backed by the MFG. GM was GMPP (not sure if it still is) and Ford and Chrysler have them as well. They were always generally pleasant to work with and usually paid whatever the shop rate was for labor. As a transmission tech, on rare occasions they would opt for a good used trans (same or less mileage as the original that came out of the car) that they would also warranty for the duration of the policy. Most labor operation numbers we could just perform without inspection. They would send an adjuster out for major assembly repairs (internal engine, transmission or transfer case mostly). The rest of the aftermarket warranties for the most part were a dumpster fire. A couple of them were okay but I can’t remember which ones. Most of these companies would cover seals and gaskets, but would exclude Cadillac Northstar head gaskets (I was a tech at a Cadillac dealer). Total waste of money. I will say though, at the three GM dealers for which I worked, they only sold CPO or GMPP warranties. Any of our customers that had something else were swindled by an aftermarket warranty company making cold calls.
Yes the manufacturer warranty is worth it, aftermarket is cheaper, because they exclude all known failures on the vehicle. If the trans is known to fail, like a CVT is, they will exclude it in the small print, and claim any damage due to it is also excluded as well.
I remember back in 01 when I bought my 01 mustang Bullitt. I got a ford extended warranty. When I traded it in, I got a pro rated refund on the left over extended warranty. Pretty sure none of these 3rd party ones would do that.
@@kd7cwg Selling privately you probably could have transferred the remainder of warranty as part of the deal, and thus gotten the same amount of money.
I bought a used truck from a big deal ship. Got the extended warranty, felt good.... Lol. Very shortly after(week or so), it was starting to over heat. Took it to a place that would work on the truck with the warranty. They looked it over told me "Radiator is clogged and they did a cleaning on it(Turns out that's all they were authorized to do from the warranty)." Truck started to over heat again, so I took it to the dealership. Dealership told me they think I have a blown head gasket. Called Warranty about it, they said the dealership needs to break down the engine and 100% confirm this is true because they would replace the engine. Said if that was not the issue, I would have to pay for the repair. I knew the person working on the engine and I trusted what they said. Dealership broke down the engine and confirmed it. Warranty REFUSED to pay for the engine and said it was my fault for driving around with the truck over heating. They didn't care that I brought it to a mechanic shop(who did warranty work), said it was my fault it over heated. So I got stuck with the bill of the dealership work of breaking the engine down. I had to go and buy another engine and put it in my self. I paid around 2k for their warranty, and was able to get them to refund me a "partial" payment of around 900$. Worst experience for my first time buying from a dealership and first time getting a Warranty. Would never do it again.
My mother bought one for her Kia at the Kia dealership. Her repair claims usually get claimed, but they have the car for days before the repairs are authorized, because the warranty company disputes it every damned time. Then the repairs are always at least ten times more expensive than it would cost me to do it in my driveway.
had a ram1500 with extended warranty once. Had bad valve cover gaskets and a bad door lock, which is part of the latch. The dang thing was in the shop for over a week, and cost to the warranty co came out to about 2 grand. All for about $100 in parts that I could have slapped on in an afternoon. I haven't bought extended warranty since. It just seems like too much hassle and things take way too long. But they 100% knew about the valve covers and door lock before selling it to me. Exactly what Ray is talking about.
That's how insurance works unfortunately. Ifnit wasn't for insurance body shops wouldn't be over pricing the repairs and less car get totalled for no reason.
Same with home warranties. I changed a water heater for about $1200 in a day, which included a drywall repair. A couple weeks later the neighbors water heater went kablamo, they were a week in cold showers, paid a $500.00 “co-pay”, and the 3 grand for the year long warranty
Around 2008 I refused the warranty on an 01Tundra at a Ford dealership and the finance lady growled, "You'll be sorry!" She was very annoyed I didn't fall for it. Still got the Tundra by the way and no major issues.
I had an extended warranty once that covered all gaskets and seals. The rear main seal blew within a day of ownership and the dealer replaced it without going through warranty. A few days after getting the car back it blew again, this time it had to go through the warranty, well turns out they didn't cover it because it was found the PCV system was the cause and they didn't cover the PCV system, so thus they wouldn't cover the rear main seal. years later my wife found herself working for the warranty company as a data entry person, the warranty company/insurance company is owned by a guy who owns four dealerships in the area. Never again with extended warranty.
I am reminded of Louis Rossmann's tale of his business interruption insurance claim denial because... The multi-day power outage was due to flooding AT THE ELECTRICAL SUBSTATION. His shop was completely dry, but the insurance denied the claim because "it was flooding, not business interruption."
I bought a used truck back in March of 2023 from the dealership and attached to the sale was a 3rd party warranty. In the test drive and 3rd party inspection, nothing was found to be wrong with the truck... Cool. Come about 6 months later, I started noticing harsh jerky shifts in the trans. I did my due diligence and brought it back to the dealer and long story short, the 3rd party warranty saved me from a $12,000 repair bill! I only paid about $300 or so of misc crap the warranty didn't cover. So for me, it was a win-win!
@@yahuniqueyazreal1450 It's "Millennium Auto Protection." I don't think they have a website but if you do a search, you might find some useful info from review sites. ;)
I bought an extended warranty when I bought and financed a used car from a dealership. Before reaching the maximum miles covered by the warranty I had the vehicle inspected at another dealership ( car was in for a recall) to see if anything was needed before the warranty expired. A couple of small items were found and the shop contacted the warranty company. To my surprise, I discovered the first dealership hadn't sent the money to the warranty company to purchase coverage. This is a big deal and very illegal. I reached out to the dealership several times and once they knew the issue, nobody would talk to me, probably fearing legal action. Then, they quietly repaid the amount of the coverage to the finance company. I'm lucky I was a friend of a friend of the dealership owner and would drop his name, otherwise I might not of even received the refund. I. considered reporting this to law enforcement but just wanted to be done with this place. Funny thing is, I just received another marketing email from them 8 years later.
Years ago my FIL was sold an extended warranty by the Dodge dealer when he purchased a new Dodge Caravan. Came the day when he needed it for a bad transmission and found out the warranty company was no longer in business. He thought he was buying a Dodge dealer warranty.
Except these new appliances!🤬. Especially a fridge. I'm old and NEVER buy them but I'm so afraid of new appliances. Vehicles, I got a great mechanic!😁.
I have had extended warranties before too. Most you don't use. But on my Challenger the radio started tuning itself. It was a known issue with lots of comments on forums. The radio controls the AC, navigation, etc. So without it you lose much. Cost of replacement was $1100. So I call the extended warranty place and they say it would be covered. Can't get anything from Dodge. And the worst thing is that all the dealers I called said I'd have to leave the car for about 5 days as the person verifying the problem must rotate between many dealers so only comes in once a week. So I finally bight the bullet and agree to drop the car off. Get to the dealer and the guy comes out and says "I know the problem and already have the part ordered". What? So I don't have to drop the car off for 5 days? Weird. But I don't mind. And finally Dodge does get back to me to cover any deductible. So the radio got fixed and I was happy. But I am sure not all extended warranties work so well.
They are on offer here in New Zealand. There are laws around how they can be offered at the time of sale. There will always be that one pushy salesman. Never purchased one myself though. That's what comprehensive vehicle insurance is for.
This one hits home. I bought a supposed "Certified Used Car" 2020 Nissan Sentra SL for my grandson from a dealer in Homosassa, FL. I got GAP insurance, extended warranty, everything that would "protect" me, since it was technically my car. We brought it in for it's first service (oil change, etc) which cost me $198. Along with that, they gave me an estimate of "suggested" items to repair. It hit almost every section of the car for a total of over $4000 on a "certified" car, none of which was covered. Obviously, I declined all repairs. There is a bright side (or dark, based on your perspective). A couple of months later, the car was stolen and totaled, paid for by the insurance company and GAP insurance. In addition, the dealer had to request a refund on the extended warranty policy. Over all, it wound up costing me a couple of thousand dollars, mostly in car payments to resolve this mess. They don't call them Stealerships for nothing.
@@scottmorgan133 No argument there. It was more about the dealership in this case. I'm a Ford and Chevy guy. That was what my grandson wanted and he was making the payments.
I cannot wait to show my daughter this video. She got a car a few months ago that's been at the dealership more than it's been in the driveway. I recommended a no no no however she wanted to do it all herself. Big girl out of college I know what I'm doing. Turn down there was a metric ton of forbidden glitter in the oil. Then Dad had to step in. Now she's getting a brand new crate motor. They did sell her on the stupid warranty. Lucky for her the motor was still covered under the manufacturer warranty. However they still took her for $300 to tell the stupid little car from my house back to the dealership. I can't thank you enough for posting and I told you so video.
You hit the nail on the head. Eons ago when I was in my early 20's there used to be mobile mechanics that specialized in going to the dealer and performing an inspection. I lived in the NYC area at the time, mid 1990's. The dealers hated these guys and many times would not even allow a pre-purchase inspection unless the guy came with you and you had time to inspect a car because there wasn't a rush to buy a potentially decent car. Now, if you aren't buying the moment you step on that lot you can kiss that car goodbye. I live in NJ and if the car is not a total hunk of trash, it's gone in days and sometimes they might post a car online and you can hit the dealer the same day and it's gone. Ask for pre-purchase inspection and they'll tell you that's what the warranty is for. Used car buyers are not in anyway shape or form in control of the process.
In what seems like another life I was a service writer. Nothing I love better than finding things in the first month that came back that I could charge the sales department for loved it!
We bought a 1 year old car back in 2014 the financing guy would NOT finish the paperwork until we purchased a warranty. So finally I caved. We finished the paperwork. We drove it home and the next day I called and canceled that warranty. They sent the refund to the financing company. We were instantly 3 months ahead on payments! A huge win in my book!
I work for a warranty company, We ask the Selling Dealership for the Used Car Inspection and if it is listed on that Used Car Inspection then we will deny that because they found it and didn't fix it, Some times we ask for Pictures or we will send our 3rd party inspector out to look at everything, which takes 24 to 48 hours to go out and look at that vehicle, I would say always take that vehicle somewhere you can trust to look over that vehicle and to make sure everything is good to go on that vehicle
There are so many exemptions in the policies that what you thought you bought was not what you got. As a mechanic in industrial maintenance for 20 years in the shipping industry and 28 years in manufacturing, I have always advised my friends and family never to purchase a third party warranty.
I bought my silverado from the mopar dealer and purchased a 4 yr powertrain warranty through mopar. Just received a new GM Trans, all GM fluids and GM condenser for $103.73, the cost of my deductible and tax at the 3-1/2 yr mark. I do believe manufacturer warranties work, still don't think the 3rd party ones do!
Ford's extended warranty replaced a junk yard transmission the previous owner put in my truck. No questions asked. For some unknown reason, the original owner replaced the truck's auto transmission with a junk yard Mustang transmission. The Mustang transmission began to have issues a year after I bought the truck. They put a new transmission in with the truck at 90k miles.
I had the extended warranty on my f150 I got my money's worth out of it the dealership tried to deny my warranty claims several times I called the warranty company myself everytime I was taking it in I had a turbo coolant leak they tried to deny the warranty company replaced the whole turbo instead of replacing the coolant grommet into the turbo I also got water pump and front cover oil leak and my iwe all replaced for almost no cost on my end ford for the most part stands behind their warranty even when the dealer don't wanna do the work I ended up changing dealerships I pissed off the one I bought the truck from so bad even the service writer bitched at me the one time because I left her a bad reveiw for fighting me an my warranty she lost some of her bonus that month because they get paid bonus on performance reviews
i constantly hear commercials on the radio about extended warranties. i thought it was just one station, but cycling through 4 stations i noticed they all push for the same companies. i hear about carshield being garbage, and another one is ox car care. third party companies will always be trash and they push their customers.
Never had a problem with the "factory" backed extended service contract. Ford Motor Company has always paid like a slot machine less my deductible. There a a couple of aftermarket providers that are that good but they are few and far in-between. If it's not factory owned, walk away. Always ask who is the financial backer of the policy; Ford, GM, Mopar, etc. I know Ford offers Ford policies via the phone to Ford directly at cost and at no interest. Pays to go shop around prior to purchasing a vehicle.
I bought a Chevy S-10 back in 1996. It was a 94 had 45,000 miles on it. I was young and dumb at the time so I bought the extended warranty only got to use it once for the starter motor then after that was fixed. Started having engine coolant disappearing every time I took it to the dealer they said they couldn’t find it leaking anywhere. I ended up fixing it myself and took the balloon head gasket back to him and laid it on their counter and said I thought she said my head gasket wasn’t blown so now I just fix my own cars.
They've gotten even more aggressive about it too. I had a financial advisor at the Subaru dealership I bought my BRZ from flat out call me an idiot for not accepting the extended warranty. Then even after I refused they continued use scare tactics like breaking down the cost of how much my infotainment screen would cost if it were to break. Now my car was new and not an older used car so I didn't buy any of that BS. I believe if you just take care of the car you'll never need the dealership anyway since I do my own maintenance.
If that guy would have called me an idiot, I'd have walked right out of there. I don't care what car it was. I've seen scare tactics used and if you don't know any better it sounds horrible. I once saw a salesperson in a Staples tell an older couple that they needed Microsoft Office or their computer would stop working in 60 days. When the guy stepped away I went over to them and let them know that was BS. Whatever people can do to separate you from your money, they will try it.
@edme4007 On our last 3 Crosstrek’s(17, 18 & 20 6spd Premium’s) all bought new they tried EXTREMELY hard to get me to buy the Extended Warranty… like ummm no-it’s brand new. If I decide to keep them past 36k I’ll come see you about buying one🤔 When I picked up my 17 WRX Premium 6spd with 18k miles in 11/21 I did purchase the MaxCare Warranty (which I’ve had awesome luck with on other vehicles)-only to get home and discover the car was still covered by the OO’s Subaru Ex Warranty. First service the selling dealer called him up-was like are you canceling this? Said nope-paid the transfer fee, canceled MaxCare and got a basically free warranty🤣👍🏻. Subie owners are some of the coolest people💯
This is exactly why I watch Ray. I come from a different industry than you. Your depth of knowledge, expertise AND experience are worth your weight in gold!
Used to be a Service Writer in a dealership... 1000000000% confirm most of this. I don't know that I would automatically assume that it was always malicious. Everything that came across our desk to get approval from the sales dept had the parts list and all that jazz. Everything was recorded on the ro history. None of this 'disappeared' parts quotes tied to it etc. It is awful to have to deal with these companies calling for approvals / trying to adjust prices.
You are 100% right Ray. I worked for a stealership for many years and saw many unhappy customers regarding extended warranty plans. Keep up the good fight and ignore the haters.
I worked at an Oldsmobile dealer as their trans man. Quite often the warranty company, either GM's or other extended warranty, would send out an adjuster. He would look at the trans with me and say "Declined". I would right then and there start putting parts in boxes I had on hand for the purpose. While He was there I would start putting them in the trunk. Almost invariably He would say " What are you doing?" I would tell him that I was done with this car tow it out of here. If it was a front wheel drive car, this was a big deal. Quite often He would reconsider.
You are the best. Thanks for informing the public for the scams that occur. I had the same thing happen with a cell phone 20 years ago. I spent $9.95 for the warranty every month for 10 months and had my phone stolen. Well I file a claim and took them 3 weeks to honor the claim. I had to spend a $35 service fee but the worse of it I got a used phone with a dead battery. I even had to spend $10 for a new battery. It would have been better for me to hold on to the money I spent and bought the same phone new with a 1 year warranty. I have other examples that warranty contracts are written on toilet paper. They benefit the car dealerships and warranty companies but not the customer who works hard for their money. You are the best and caring for your fellow man👍👍🤩 🛠 You deserve a case of brake cleaner for your trouble. 🛠⚙
My problem with the extended warranty is that they refused to cover a clockspring that needed to be replaced on my Subaru Forester to fix a horn issue. Even though "Horn" was listed on my contract Revelos still refused honor the warranty. I ended up doing the repair myself. Part was $199.00 from Subaru.
I think my favorite version of this is when dealerships pocket the money, fill out the paperwork for the 3rd party warranty, then tuck the paperwork away hoping you never use it. But if you DO use it, then it's "WHOOPS sorry we just forgot to file the paperwork and payment here you go!" I'm still trying to find a way to get my extended warranty to pay off my studen loan debt. I don't have either of those things, but the phone calls I keep getting insist otherwise, and I think I just need to put the two parties together and let them hash it out...
I made the mistake of getting an extended warranty on my old truck back in 2008. A couple years in it needed work. I read the fine print of what was covered, tried to make a claim as it was written black and white that the work was covered, and they denied it right away. The next time round when buying a new truck I happily turned down all of their extra's.
Sorry if this is a bit off topic, but I discovered another dealer scam. I bought a "new" Mercedes SUV that was listed as an 'executive demonstrator' with 5k mi. Clean Car Fax/Car Guru reports. Later learned that my new car was actually a dealer lease that had been in a rear end collision. The tailgate had been replaced along with extensive rear repairs. Since it was never sold I became the first registered owner other than the dealer. 7 years later the car has been great but I was still fooled, and it was legal.
If a claim was never filed on a vehicle involved in a collision and the owner ( private, dealer, lease company, etc...) paid for repairs out of pocket, you'll never know. Here's a heads up. Carfax is just a dealer tool used to scam consumers. Always have an inspection done before making a major purchase. ...Which is what Ray says here.
Em I the only one that loves extended Warranties . I’ve had a lifetime warranty on a 2008 jeep, bought it new added a Chrysler lifetime warranty $1600. To this day I take it in and the dealership fixes everything under warranty. I’ve had 3 axles , differential, radio , water pump (2) , trans pan and gaskets, a/c compressor, condenser. Those are the items I can think of. I do pay $100 each visit. Also have 2 other jeeps with same warranty but much newer and I payed more for the warranty. As far as I know Chrysler stopped lifetime warranty’s. You also have to keep your vehicle as long as I do or it wouldn’t pay off
I had an extended warranty once. ABS system malfunctioned. Dealership turned in the claim and it was denied. I screamed bloody murder to the point that the owner of the dealership (Also served as general manager. Decent guy.) got involved. He called the warranty company and the claim denial all boiled down to whether the wires leading around the rear axle to the ABS sensor went over or under the axle. That was it. They denied it because the wire went under the axle and they said that meant it had been altered from factory. End result was the dealership covered the repair AND discontinued selling warranties from that company. Since the dealership was a chain of 12 locations, it was a substantial monetary loss for the warranty company. Unfortunately, the owner died 2 years later and that dealership went to shit under the new owner.
Had the same thing with my f-250 death wobble brought it back the same day they can’t find anything wrong held truck for 30 days and then had me pay the extra from the warranty for the entire front end sueing them ran they sold me a truck that didn’t pass a nys inspection with a bad front end
We bought a 2017 RAV4 with 44000 and change on it, 6 months ago. Used dealer was pushing the extended warranty, and was almost a deal breaker, because it came down to a tiff of what if something happens with the vehicle. And they could NOT understand what i was saying “ I AM THE WARRANTY!”…
This exact thing happened when I bought my car timing cover,extended warranty every thing. but i did get a $4500 transmission replaced for $800 before it expired
this exact thing happened buying our latest vehicle. My 'spidey senses' were screaming at me , but my wife wanted the car. This was supposedly a reputable dealership,but they are all the same. I work as a tech at a dealership...they are All the same
Thank you Ray for your honesty, you're one in a million, they don't make them like you anymore. Man I wish you were out where I lived you'd be my mechanic I've been watching your channel for over a year now and love how you show us how things work. Keep up the great work, and don't pay attention to the haters because that's all they are.
In 67 years I’ve only purchased an extended warranty once. That was with our new, in 2016, Ford Explorer. It ended up paying for itself with a leaking timing chain cover after the 3 year 36,000 mile warranty expired. However I worked dealerships for 8 years and, one, would never buy a used car from a dealership in the first place and never by a third party warranty on a used car. What really amazed is you were able to get that big ass dully through a fast food drive thru lane.
I only bought two in my entire life at least automotive wise. The best I ever recovered was about half of what I paid. I was surprised though when I purchased my latest used vehicle in 2020 just how many entities that tried to sell me an extended warranty for it. The Credit Union that I had dealt with for years pushed hard to sell one. Then my insurance company offered one(also a long term relationship) and finally of course the dealer. Who was astonishing the least high pressure of them all. They just mentioned it. I declined all and other than a couple of small items covered by the dealers bumper to bumper 30 day warranty after purchase. And the vehicle has been fine ever since.
Bottom line is, get a pre purchase inspection done at your preferred mechanic shop before you buy the car. If the dealership won’t let you, then don’t buy from that dealership because it’s obvious they’re trying to hide that leaking timing cover.
Even 50 years ago, my father said that extended warranties were a waste of money, and just went with the standard factory warranty - he said "if there's something seriously wrong or defective with it, it's going to show up in short order". He also said "never buy the first year of a new model car - let someone else be the guinea pig, and find out if there's any defects with it that slipped past the engineers, or of the whole thing is just a lemon on wheels". You could make the same argument regarding those "extended service plans" the big box stores try to get you to purchase, when you buy a new home appliance, like a washing machine or refrigerator or lawn mower. One time, I really pissed off the salesperson at a big box store, who tried to push one of those service plans, when I asked them back, "Are you telling me this appliance is so poorly made, that I need to PLAN on this thing failing after only 3 years and getting it fixed? If that's the case, then I need to check around and find something else." The return stare I got from that guy would have burned holes in concrete, lol.
This is almost verbatim what I posted. My dad told me the same thing and did the same thing to pushy salespeople. Very nicely said and agree wholeheartedly.
Did that at my Honda dealer. When the finance guy started in on the extended warranty I said I am buying a Honda because it is advertised as a great, trouble free vehicle. That pretty much put the guy between a rock and a hard spot😅 He did then tell me that I could come back at any time and get the extended warranty. The Honda Fit is a 2009 and has never needed any "covered" repairs, just wear items.😊 I saved thousands of dollars😊
I bought a new TV they tried really hard to get me to buy a extended warranty, I told them if it prematurely failed I was going to throw it threw the store front window. End of conversation !!!
I bought a Carmax extended service plan when I bought my Fusion from there 7 years ago. Only ever used it once, when the purge valve went out a year later. I agree that the only extended warranty/service plan anyone should be buying are the ones offered through a manufacturer.
I've only got the extended warranty once. It was on a used Chevy Celebrity. My wife said I was nuts. We had 4 days left on the warranty when she knocked out the harmonic balancer on the front of the engine and we had to have to towed. It cost me $50 out of pocket for the tow and the warranty paid the rest. Oh, and I had driven the car 40,000 miles also. That paid for the warranty plus $500. That's the last time I got a warranty. Most of my cars since have been either new or new enough I haven't bothered with the warranty because as you said, I felt like I was getting scammed when i read the fine print in the warranty they wanted to sell me. Thanks for being the honest guy you are. Keep up the good work. Oh, enjoy your mickey D's
Buy a car in cash, google average used car payment, put that figure into a separate fund from savings for repairs and/or replacing vehicle (when catastrophic failure). You’re not in a loan, you’re not paying interest, and not carrying that mandatory collision and comprehensive that the loan company requires. I have 2 cars, paid in full. Second as a backup and occasional rotation. And a meaty savings account for maintenance and repairs that’s getting 5% interest- paid to me.
Cars that are 10 years or older with high mileage are at their bottom in depreciation- easily negotiated. If you are lucky, you can grab a vehicle or two for the price of (1) extended warranty/service contract.
Then you will have two vehicles. If one breaks down, you have another. With the average used car payment, in 3-4 months you can have another second vehicle. Vehicles don’t last.
And for those who say “I can’t afford to buy a vehicle in cash.” But they have the money for their $500-$700 payment a month. Buy a car for a $1000-$1500, drive 3-4 months- you’ll have $1500-$2100+ saved to get into another car. Sell that car you got for $1000-$1500, put that $1000-$1500 back into the savings. Repeat the process every 3-4 months until you have a vehicle you want. It’s about patience and delayed gratification. In a years time, you upgraded from $1000-$1500 vehicle to a $5000-$6000. Paying cash and learning the discipline in your finances.
We once bought a used van at a new car dealership. I asked to see the service bay inspection and write up for what is needed or recommended. They said they did not have one. I asked so you got it, cleaned it and slap a tag on it? Sales fleecer said of course not we check them out. I again asked to see what was checked out. Was then told it is proprietary information which can not be disclosed. We walked out.
Ultimately it comes down to the customer to be knowledgeable and inspect the vehicle thoroughly. Nobody has ever stopped me from popping the hood and checking for leaks. Or inspecting the tires. As the customer you need to do the due diligence of either inspecting the car. Or paying a good honest shop for a pre purchase inspection
I actually had a dealer add a extended warranty to my contract without even asking me ,never said a word because I told him I didn't want 1 b4 the paperwork even started then when I came back the next day because both front Brake calipers were cracked they said nothing was wrong with the brakes after I already found the problem then they tried to charge me for the inspection and new brake calipers because I didn't get the warranty . And after almost going to jail I ended up doing the job myself and Sued them for the costs and ended up getting a bill from the warranty company saying I owed them money for the extra work. 2 years later and I'm still fighting.
@@ianrace4066 oh ok, that makes sense. The previous owner must have been driving like an idiot, and overheated the brakes....I like those little cadillacs, my wife used to have one.
Hi Ray, they do it differently in NZ. The dealer gives you a three month extended warranty but it basically covers "jack". I had a unseen leak in the trunk, it shorted out the board controller for the tail lifters, rang the insurance company and got "sorry don't cover electrical components, engine only story".... $5k later. NZ warranties, not worth the paper their printed on.
Ray you are spot on with the “warranty debacle” on used cars. The number of times I’ve seems this play out while working at different dealers(all franchise dealers to boot) is crazy. Best ones though are the contracts they’d sell to the customer-then pocket the money & drop it in there “junk drawer”. Finally caught up to our F&I guy-ended up being led out in handcuffs💯🤔
im a service advisor, been one for years at many diff dealerships and we use peoples extended warranties everyday, they are not a scam. with that said do your research and find a good one, not the ones that you get letters in the mail or the scam phone calls. but do your research, there are good ones out there
The point of trying to get a used car prepurchase inspected is really hard to do. Most shops they have to be scheduled or are having undertrained person at a Quick Lube why does not know to look into areas that seem freshly painted. I'm in St Louis now and the majority of the decent shops are at minimum 1 week out but closer to 2 weeks to be seen. The dealerships know this and use it to their advantage.
@@justpray365 I understand the point your making. However their are people who have to replace a car or truck or not work or in my case if the car went down my moms life would be in danger due to her health. Other forms of travel especially in several locations is epically expensive without your own transportation. Patience is a venture however a home to live in and food to eat for most is dependent solely on personal transportation. It's great to give one liners it's harder to live them.
@@MrAaroncissell You solidified my point. If your mom’s life would be in danger if your car went down, then it’s even MORE important that you have a competent mechanic check it out before you buy it. And even more important, is that you make sure that ALL PREVENTIVE MAINTENANCE is done on the car you currently have. Which means, take the car to a competent garage and have them look it over and do some testing to make sure it doesn’t give you a surprise breakdown. I have always found that it’s definitely worth having a backup car for emergencies that you can’t plan on. I had a friend that found this out just recently. If for some reason you cannot have a cheaper backup car, then that makes a Pre-buy checkup, and preventive maintenance even MORE important.
@@justpray365 Well it is good to know that you are one of the few people that cam afford two cars and all the cost involved with it. However again you cut TIME out of your equations. I take good car of the cars we have, I help as much as possible with friends cars. But money is extremely tight for the majority of people. When they hit a wall like the car decided that it wanted a divorce from it's water pump and through it out on the highway. No prior external leak just rotten, broken bolts while traveling on the4 highway at 70mph and the engine is now toasted. How much TIME do you think that people have. Our own government states regularly that 4.26 out of 10 people are in poverty and about 12% more near poverty. That puts just over 5 out of 10 people who have any break in work or a major medical issue loosing all security meaning Home and Food. #1 issue is transportation. Time is the factor and 2 weeks to have a known good mechanic to look over a car is simply not doable. With my mothers medical conditions if the car that I can get her in and out of goes down and she needs another sudden trip to ER for 24 hours of treatments the added $2500.00 transportation bill added to the Hospital bills I already account for in advance as best as I can. This means that I will be shifting/offsetting most of my bills for a few months while trying to repair the car and catch up. The point is the "just over 5" out of 10 that can't afford the time and delay. the dealerships know the situation and use it to their advantage. I am glad that you have options. However It is still easer to give one liners then live them. I hope you never have to deal with the situations I have described because it is crushing and yah everybody else is right and doing great.
My dad used to have Dodge Ram 1500. The warranty covered several repairs that were 2x the original price of the warranty. That one definitely worked out for him. I'm going through extended warranty with my Frontier. They covered a head unit & a power steering line. My deductible is $0 and they've covered both items. It has already paid for it's self.
CarShield helped me out but it only saved me 15 dollars since I had to pay for months 99 dollars by the time it was covered and the 100 bucks you first have to spend ,I quit CarShield
They really tried to push an extended warranty on me when I bought my 2016 Grand Cherokee. It was 3 years old and just come off a lease and was immaculate under the hood. It had 36000 miles on it. When I started watching you on U-tube Ray I had no Idea of all the problems these jeeps could have, but luckily with 110,000 miles I've had no problems yet. I do take care of it.
When I worked for CompUSA back in the 90's and early 2000's we sold extended warranties, EVERY SINGLE PERSON who got one we saw at the repair counter being told the warranty would not cover their computer's extended warranty did not cover the repair a year or so later..i had even bought one myself when i got a new computer... i had to go to the BBB and FTC to get my money for the needed repairs....
I got a car new, and close to two years of ownership I got a letter from the warranty firm, asking if I would like to extend the coverage of my warranty, as in the amount of parts covered by it and not the time. I went to my dealer with the letter and asked what was that all about, they explained and I decided why not, it wasn't that expensive so in the end I did get the extended warranty just for my peace of mind. I've had no problems with my car in the now almost two years of ownership.
Thanks for this information. I never liked extended warranty but have bought some in the passed. I have sent video out to my gang of friends and family so they know and understand.
I bought a car quite a while back (a 2005 freestyle with 98000 miles), the dealership sold me 4 after market warranties so the whole car would be covered. I got home and read the warranty brochures and saw that there was a lot of over lap, I found that I needed only 3 (so i thought) for a 100% coverage. Went back to the dealer and the finance guy said oh yea, you only need these 2 and dropped the price almost in half for the 2 I bought. They did save me a lot of money as I ended up using them for several repairs. I only had to pay $100 for each repair, I feel I broke even at least if not edged out ahead. In my case it worked out. i still have the vehicle at over 215,000 miles. Though I do agree with Ray because most people pay full "dealer" cost for the warranty. You can but third party warranties for less elsewhere, I had one after those ended and paid monthly fee for a period of time. This one saved me $7000 when my CVT had to be rebuild, also took 5 weeks to get that done from submitting to the warranty and the final repair being done. 2 week for the inspector to get out, 2 weeks to approve the payout, 1 week for the rebuild.
They tried hard to sell me an extended warranty on my 09 Jetta. I bought it in 2010 with 4k on the odometer. It still had plastic on the carpet and nibs in the tires. I declined the warranty and they tried applying pressure. They asked me about scenarios like a bad tire, to which I replied that I could replace for $100 (and tires aren't covered anyway). Then they asked what if the A/C compressor failed and I replied with "I could replace it myself with a reman for $200". I told them that it would strange to have that much problem with a new car, since it would normally be under warranty for the first 4 years, and it's only a year old. The manufacturer wouldn't risk building something of such poor quality that it needs multiple warranty claims in the first few years of existence. They finally ran out of arguments and left me alone. They tried playing me at every step and I was two steps ahead. I came with a check to avoid their financing BS. I was in and out in under 2 hours, including the test drive. It was funny, we test drove the car and then he said he would go check to see if it was available. I called and made the appointment for that specific car, which we went and looked at on the previous Sunday (to avoid any sales people). I stopped him before he could walk away and asked him why he would have me test drive a car that wasn't available for purchase. He couldn't answer with any good reason. I told him to stop trying to play the sales game with me. I was there to buy the car, not for him to sell me it. The car was dealer driven for 6 months, sold at auction, then sat on this dealer's lot for 4 months before I bought it. I had no concerns that it would be a problem. Here it is nearly 16 years old, with one warranty trip for a secondary air injection warranty, a crank sensor, and a trans replaced for failed diff bearings (VW sent out a TSB for fluid level increase by 0.2L). I've been through the original radiator fans, blower motor and resistor (didn't have the digital HVAC), tires, brakes, calipers, and other normal wear and tear items. It still runs, drives, and stops, but makes a few aging sounds in the suspension. The springs are getting a little shorter every year. When it looks like a low rider, maybe I'll replace the struts and springs! Lol
Sounds like it should be illegal. Should also ask a dealer why they are pushing the extended warranty so hard when you're buying a car from them. Would make me think twice buying a car from a dealership that is pushing hard for you to get the extended warranty. Definitely walk away from the deal if they are pushing hard for the extended warranty.
My wife and I bought a used F250 from a Ford dealer. They sold us a 36 month 36,000 mile warranty for under $3.000. Being a diesel, i don't know how to work on it (I can do just about anything to a gas burner). Well, it developed the dreaded wobble in the front end. A shop quoted almost $6.000. The dealer got it covered. Im not usually an extended warranty guy, but it worked out this time.
I bought a 2013 G37 earlier in the year with cash and they didn't make much money off me. I got a great car but salesperson said all the fluids were changed. I contacted the service department at dealership and they didn't do any. I took it back and got them to perform brake fluid change per 90,000 mile service schedule. They tried to sell me on the extended warranty but I did my research. Long story is that you shouldnt buy the warranty unless the vehicle is hot garbage...Dodge
Hey ray been a sub for a long time let me know if you need anything I would love to help you if you got some mechanic problems, I went to college for Automotive so if you have any questions for any vehicle, let me know. I’d be happy to help and nothing is coming up so let me know I can always help.
I actually had a good experience with a warranty company. I didn't get it through the dealer, I bought it straight up through my credit union. About 100mi before the warranty ended (80k) the transmission blew out completely (Nissan CVT). I had about 8k worth of work for a $250 deductible. New tranny lower, control arms, oil pan leak and a few other things that were not considered wear or consumable like brake pads.
They got me too @RainmanRaysRepairs . In my case I got a policy that covered engine and transmission only. Ended up that it had a blown head gasket. When I mention the policy, they tell me that the policy was engine and transmission but excluded gaskets, wtf. So they pocket the money on the policy and they pocket the money on the repair.
You are scamming everyone Ray! You make money from your customers cars &&&&& plus YOU MAKE MONEY BY RECORDING THEIR VEHICLE in a video. Without customers permission. And you don’t pay the customers for using their vehicle. You make money of TH-cam and overpriced work from your shop. but you want to talk about extended warranty’s. Get a grip man.
Not to mention...
... what a pathetically lame troller you are... XD
Are you taking about my shop that has a lower labor price than any other shop in my area? Not to mention my pricing matrix that’s less than every shop in the area. It’s also no secret that I make content. We do t need to discuss the agreement clause on my work orders that grants permission to use their cars in said content. Get a grip man, my T’s are dotted and my i’s are totally crossed
@@RainmanRaysRepairs Typical lame troller...the "keyboard warrior" who doesn't have the guts to answer you back...just spew like a drunken frat boy on a Saturday night... XD
@@RainmanRaysRepairs I guess it's easy to tell by the comments who sells car warranties!🙂
Found the sales floor guy.
I worked for a warranty company and let me tell you it's the same as insurance companies trying to save every penny! They only want to approve the cheapest of the cheapest parts and only want to pay a minimum for labor costs.You're better off saving that money for a rainy day fund for the repairs in your car.
1000% Correct!!
thats what people don't understand one way or another THEY are paying to fix their car
@@CodyCoyote2 Correct sometimes the warranty wouldn't cover all labor hours or quality parts and the warranty would only pay a certain amount and tell the vehicle owner "you pay the difference out of pocket" its a scam!
@@CodyCoyote2 The problem is the dealers make it so easy to not have to worry about it by adding a few years of coverage into the financing.
only difference is you NEED insurance to drive legally, you don’t need a warranty.
I'm glad you posted this video. Pulling back the curtain on some dealership shady practices is a good thing. I used to be a service advisor and was actually told no to needed repairs because they wanted the money from either the customer or the warranty company. Hell, I've been told to raise the labor cost on the owner of a dealership neighbor. Because the neighbor had the money so why not right. It made me sick to hear that.
Nailed it Ray. Scummy behavior like this from dealers, warranty, and insurance companies is shameful. Glad there are few people like you who are not afraid to tell the truth about these scammers.
The last two used vehicles I bought I paid cash for them. No warranty, no BS. I take them in for service when they need it, my own "warranty".
I bought an 01 olds silhouette minivan in 2019 for $900 with 148k. Still going , just hit 285k🤷♂️. Even with the repairs and maintenance I’ve put into it, I’ve averaged about $85ish a month if you wanted to call it a car payment 🤣
...these places wind up cheating the manufacturer & the honest paying customer out of thousands. Its real & it happens daily.
That's why I work on my car and screw these warranty scams they always screwed over people to make a dollar
Dont need that scam. I fix my own cars on my own. Mechanic work and body work. Save thousands a year
I "bought into" the extended warranty scam once. That's all it took, once. I am older and wiser now and do not recommend them.
All aftermarket extended warranties are just cash grabs from the public by the warranty companies and dealerships selling them!
@@TheEnthusiastMechanic I Believe Ray is cash grabber. 💯
We bought an extended warranty when we bought a Ford Super Duty. About a year or so later, one of the leaf spring u-bolts broke on a trip. We took it to a shop, they called the warranty company and the warranty company reported that they had no record of our information on file. After some heated calls to the dealership, they claimed that they were transitioning to a different warranty company when we bought the vehicle and they gave us the wrong paperwork. Long story short, we had to pay for the repairs since that dealership was either incompetent or just straight up pocketed the money. Just another reason extended warranties are a scam.
It is not uncommon for dealerships to withhold service contracts from extended warranty companies in the hope that claims will not be filed.
Pocketed, work at a dealer that did that. Oops file error.
I spent 12 1/2 years as a F & I (finance an insurance manager, by far the most profitable position in the entire dealership!!!!!) at a Ford dealership, the owners asked me to sell 3rd party warranties I refused 😮
Years later while still working there the owner family were so happy I refused to sell crap 💩
Their customer satisfaction was the highest in the Delaware, Southern New Jersey and Philadelphia area out of 37 dealerships!!!
Stay true to yourself, profit is not a dirty word but scamming people should have jail time enforcement 🎉
My mess. VW Passat quit. No restart. Towed 258 miles back to dealer. Diagnosis - key in the camshaft sheered and engine quit.
Yes, bent valves and grenaded piston. Claim denied since the failed part (key for camgear) was not a oil lubricated part. Two years later "good faith" settlement, repairs was new used tested engine lawyer fees and $2k aggravation and lack of use.
My brother just fell into this kind of muck. He was interested in a used mini van, when he went to test drive it the check engine light came on during the test drive so the salesman said they would check it out and come back tomorrow. The next day the salesman said it was a battery problem so they replaced it, what happens when you disconnect the battery? It erases all fault codes. My brother took it out and it ran OK, it was "detailed and shiny" so he bought it, no extended warranty. About two weeks later the check engine light was on again, so he brought it to his trusted mechanic (should have done that before putting down the money), he diagnosed it as a failing catalytic converter. I think the dealer paid for some of it, but it sounds suspiciously as Ray said.
100% agree. I took a used car i was thinking of buying to an independent repair only shop only a mile from the selling dealership once.... on a $4000 car (it was a while ago) they found over $2000 in repairs needed. The dealer actually tried to tell me to buy the extended warranty and wait the 30 days and it could get "taken care of." I walked.
Certified Pre-Owned warranties that are backed by the MFG are good, they are essentially an extension of the factory warranty. The next up are the warranties that are extended but also backed by the MFG. GM was GMPP (not sure if it still is) and Ford and Chrysler have them as well. They were always generally pleasant to work with and usually paid whatever the shop rate was for labor. As a transmission tech, on rare occasions they would opt for a good used trans (same or less mileage as the original that came out of the car) that they would also warranty for the duration of the policy. Most labor operation numbers we could just perform without inspection. They would send an adjuster out for major assembly repairs (internal engine, transmission or transfer case mostly).
The rest of the aftermarket warranties for the most part were a dumpster fire. A couple of them were okay but I can’t remember which ones. Most of these companies would cover seals and gaskets, but would exclude Cadillac Northstar head gaskets (I was a tech at a Cadillac dealer). Total waste of money.
I will say though, at the three GM dealers for which I worked, they only sold CPO or GMPP warranties. Any of our customers that had something else were swindled by an aftermarket warranty company making cold calls.
Yes the manufacturer warranty is worth it, aftermarket is cheaper, because they exclude all known failures on the vehicle. If the trans is known to fail, like a CVT is, they will exclude it in the small print, and claim any damage due to it is also excluded as well.
I remember back in 01 when I bought my 01 mustang Bullitt. I got a ford extended warranty. When I traded it in, I got a pro rated refund on the left over extended warranty. Pretty sure none of these 3rd party ones would do that.
@@kd7cwg Selling privately you probably could have transferred the remainder of warranty as part of the deal, and thus gotten the same amount of money.
I bought a used truck from a big deal ship. Got the extended warranty, felt good.... Lol. Very shortly after(week or so), it was starting to over heat. Took it to a place that would work on the truck with the warranty. They looked it over told me "Radiator is clogged and they did a cleaning on it(Turns out that's all they were authorized to do from the warranty)." Truck started to over heat again, so I took it to the dealership. Dealership told me they think I have a blown head gasket. Called Warranty about it, they said the dealership needs to break down the engine and 100% confirm this is true because they would replace the engine. Said if that was not the issue, I would have to pay for the repair. I knew the person working on the engine and I trusted what they said.
Dealership broke down the engine and confirmed it. Warranty REFUSED to pay for the engine and said it was my fault for driving around with the truck over heating. They didn't care that I brought it to a mechanic shop(who did warranty work), said it was my fault it over heated. So I got stuck with the bill of the dealership work of breaking the engine down. I had to go and buy another engine and put it in my self. I paid around 2k for their warranty, and was able to get them to refund me a "partial" payment of around 900$.
Worst experience for my first time buying from a dealership and first time getting a Warranty. Would never do it again.
My mother bought one for her Kia at the Kia dealership. Her repair claims usually get claimed, but they have the car for days before the repairs are authorized, because the warranty company disputes it every damned time. Then the repairs are always at least ten times more expensive than it would cost me to do it in my driveway.
had a ram1500 with extended warranty once. Had bad valve cover gaskets and a bad door lock, which is part of the latch. The dang thing was in the shop for over a week, and cost to the warranty co came out to about 2 grand. All for about $100 in parts that I could have slapped on in an afternoon. I haven't bought extended warranty since. It just seems like too much hassle and things take way too long. But they 100% knew about the valve covers and door lock before selling it to me. Exactly what Ray is talking about.
That's how insurance works unfortunately. Ifnit wasn't for insurance body shops wouldn't be over pricing the repairs and less car get totalled for no reason.
Same with home warranties. I changed a water heater for about $1200 in a day, which included a drywall repair. A couple weeks later the neighbors water heater went kablamo, they were a week in cold showers, paid a $500.00 “co-pay”, and the 3 grand for the year long warranty
This is also why you have a mechanic you trust inspect any car BEFORE you buy it.
Around 2008 I refused the warranty on an 01Tundra at a Ford dealership and the finance lady growled, "You'll be sorry!" She was very annoyed I didn't fall for it. Still got the Tundra by the way and no major issues.
I had an extended warranty once that covered all gaskets and seals. The rear main seal blew within a day of ownership and the dealer replaced it without going through warranty. A few days after getting the car back it blew again, this time it had to go through the warranty, well turns out they didn't cover it because it was found the PCV system was the cause and they didn't cover the PCV system, so thus they wouldn't cover the rear main seal.
years later my wife found herself working for the warranty company as a data entry person, the warranty company/insurance company is owned by a guy who owns four dealerships in the area. Never again with extended warranty.
I am reminded of Louis Rossmann's tale of his business interruption insurance claim denial because...
The multi-day power outage was due to flooding AT THE ELECTRICAL SUBSTATION.
His shop was completely dry, but the insurance denied the claim because "it was flooding, not business interruption."
@@MonkeyJedi99 This one just made me literally smack my forehead. Are you kidding me????
One more reason why i drive Tesla. No PCV valve.
🤦🏻🙄
@@wolfgangpreier9160wait until you have to replace that battery...
I bought a used truck back in March of 2023 from the dealership and attached to the sale was a 3rd party warranty. In the test drive and 3rd party inspection, nothing was found to be wrong with the truck... Cool. Come about 6 months later, I started noticing harsh jerky shifts in the trans. I did my due diligence and brought it back to the dealer and long story short, the 3rd party warranty saved me from a $12,000 repair bill! I only paid about $300 or so of misc crap the warranty didn't cover. So for me, it was a win-win!
Who was the extended warranty ptovider?
@@yahuniqueyazreal1450 It's "Millennium Auto Protection." I don't think they have a website but if you do a search, you might find some useful info from review sites. ;)
That a great organized scam for the dealership. This video need to go viral.
I bought an extended warranty when I bought and financed a used car from a dealership. Before reaching the maximum miles covered by the warranty I had the vehicle inspected at another dealership ( car was in for a recall) to see if anything was needed before the warranty expired. A couple of small items were found and the shop contacted the warranty company. To my surprise, I discovered the first dealership hadn't sent the money to the warranty company to purchase coverage. This is a big deal and very illegal. I reached out to the dealership several times and once they knew the issue, nobody would talk to me, probably fearing legal action. Then, they quietly repaid the amount of the coverage to the finance company. I'm lucky I was a friend of a friend of the dealership owner and would drop his name, otherwise I might not of even received the refund. I. considered reporting this to law enforcement but just wanted to be done with this place. Funny thing is, I just received another marketing email from them 8 years later.
This happens all the time like 1 of 10
Years ago my FIL was sold an extended warranty by the Dodge dealer when he purchased a new Dodge Caravan. Came the day when he needed it for a bad transmission and found out the warranty company was no longer in business. He thought he was buying a Dodge dealer warranty.
Never purchased extended warranty and never will.
I did a extended warranty but ac broke multiple times and it covers thousands more than the warranty cost. Not every time is a lost.
Except these new appliances!🤬. Especially a fridge. I'm old and NEVER buy them but I'm so afraid of new appliances. Vehicles, I got a great mechanic!😁.
I have had extended warranties before too. Most you don't use. But on my Challenger the radio started tuning itself. It was a known issue with lots of comments on forums. The radio controls the AC, navigation, etc. So without it you lose much. Cost of replacement was $1100. So I call the extended warranty place and they say it would be covered. Can't get anything from Dodge. And the worst thing is that all the dealers I called said I'd have to leave the car for about 5 days as the person verifying the problem must rotate between many dealers so only comes in once a week. So I finally bight the bullet and agree to drop the car off. Get to the dealer and the guy comes out and says "I know the problem and already have the part ordered". What? So I don't have to drop the car off for 5 days? Weird. But I don't mind. And finally Dodge does get back to me to cover any deductible. So the radio got fixed and I was happy. But I am sure not all extended warranties work so well.
They are on offer here in New Zealand. There are laws around how they can be offered at the time of sale. There will always be that one pushy salesman. Never purchased one myself though. That's what comprehensive vehicle insurance is for.
I did and won't again. It had so many limitations including where I could get it fixed that it was essentially worthless.
Thank you for your honesty in this industry
This one hits home. I bought a supposed "Certified Used Car" 2020 Nissan Sentra SL for my grandson from a dealer in Homosassa, FL. I got GAP insurance, extended warranty, everything that would "protect" me, since it was technically my car. We brought it in for it's first service (oil change, etc) which cost me $198. Along with that, they gave me an estimate of "suggested" items to repair. It hit almost every section of the car for a total of over $4000 on a "certified" car, none of which was covered. Obviously, I declined all repairs. There is a bright side (or dark, based on your perspective). A couple of months later, the car was stolen and totaled, paid for by the insurance company and GAP insurance. In addition, the dealer had to request a refund on the extended warranty policy. Over all, it wound up costing me a couple of thousand dollars, mostly in car payments to resolve this mess. They don't call them Stealerships for nothing.
It’s a Nissan, you bought junk
@@scottmorgan133 No argument there. It was more about the dealership in this case. I'm a Ford and Chevy guy. That was what my grandson wanted and he was making the payments.
@ronhansen7717 is ford or Chevy still in business. Isn't ford just doing recalls now?
@@cengeb So what is your ultimate brand? Mopar? Ask Ray about Pentastar engines.
@@ronhansen7717 If it ain't German, it ain't a car, plain and simple. they invented it, they perfected it
I love learning all of the ways to get scammed at the dealer. Thanks, Ray.
I cannot wait to show my daughter this video. She got a car a few months ago that's been at the dealership more than it's been in the driveway. I recommended a no no no however she wanted to do it all herself. Big girl out of college I know what I'm doing. Turn down there was a metric ton of forbidden glitter in the oil. Then Dad had to step in. Now she's getting a brand new crate motor. They did sell her on the stupid warranty. Lucky for her the motor was still covered under the manufacturer warranty. However they still took her for $300 to tell the stupid little car from my house back to the dealership. I can't thank you enough for posting and I told you so video.
And that warranty could have covered that new engine, if it wasn't still under the manufacture warranty.
Now, who is the Child?
The crazy’s come out sometimes…… great talk Ray nothing beats a good mechanic shop.and a genuine mechanic that is effective and efficient.
Who does not know this by now, no matter what Ice-T says.
LOL, Celebs who do these commercials should be ashamed. They do not need the money from what they get paid for such stupid scam commercials.
Besides, he is a TERRIBLE actor!
@@petematthews7303he su.ks. Bad hair die job too
And Vivica A. Fox🤮🤮🤮
@@eddymahon1503 50 cent had that years ago. LOL. Will Smith probably to, when filming INDEPENDANCE DAY with her years ago.
You hit the nail on the head. Eons ago when I was in my early 20's there used to be mobile mechanics that specialized in going to the dealer and performing an inspection. I lived in the NYC area at the time, mid 1990's. The dealers hated these guys and many times would not even allow a pre-purchase inspection unless the guy came with you and you had time to inspect a car because there wasn't a rush to buy a potentially decent car. Now, if you aren't buying the moment you step on that lot you can kiss that car goodbye. I live in NJ and if the car is not a total hunk of trash, it's gone in days and sometimes they might post a car online and you can hit the dealer the same day and it's gone. Ask for pre-purchase inspection and they'll tell you that's what the warranty is for. Used car buyers are not in anyway shape or form in control of the process.
In what seems like another life I was a service writer. Nothing I love better than finding things in the first month that came back that I could charge the sales department for loved it!
Yeah, that's my favorite to, and I'm a tech. I always hit the sales department hard when it comes to labor hours lol
We bought a 1 year old car back in 2014 the financing guy would NOT finish the paperwork until we purchased a warranty. So finally I caved. We finished the paperwork. We drove it home and the next day I called and canceled that warranty. They sent the refund to the financing company. We were instantly 3 months ahead on payments! A huge win in my book!
I work for a warranty company, We ask the Selling Dealership for the Used Car Inspection and if it is listed on that Used Car Inspection then we will deny that because they found it and didn't fix it, Some times we ask for Pictures or we will send our 3rd party inspector out to look at everything, which takes 24 to 48 hours to go out and look at that vehicle, I would say always take that vehicle somewhere you can trust to look over that vehicle and to make sure everything is good to go on that vehicle
There are so many exemptions in the policies that what you thought you bought was not what you got. As a mechanic in industrial maintenance for 20 years in the shipping industry and 28 years in manufacturing, I have always advised my friends and family never to purchase a third party warranty.
Manufacturer back extended warranties are typically good. Ford extended care being one of them. The third party ones like CarShield are hot garbage.
I bought my silverado from the mopar dealer and purchased a 4 yr powertrain warranty through mopar. Just received a new GM Trans, all GM fluids and GM condenser for $103.73, the cost of my deductible and tax at the 3-1/2 yr mark. I do believe manufacturer warranties work, still don't think the 3rd party ones do!
Ford's extended warranty replaced a junk yard transmission the previous owner put in my truck. No questions asked.
For some unknown reason, the original owner replaced the truck's auto transmission with a junk yard Mustang transmission. The Mustang transmission began to have issues a year after I bought the truck. They put a new transmission in with the truck at 90k miles.
I had the extended warranty on my f150 I got my money's worth out of it the dealership tried to deny my warranty claims several times I called the warranty company myself everytime I was taking it in I had a turbo coolant leak they tried to deny the warranty company replaced the whole turbo instead of replacing the coolant grommet into the turbo I also got water pump and front cover oil leak and my iwe all replaced for almost no cost on my end ford for the most part stands behind their warranty even when the dealer don't wanna do the work I ended up changing dealerships I pissed off the one I bought the truck from so bad even the service writer bitched at me the one time because I left her a bad reveiw for fighting me an my warranty she lost some of her bonus that month because they get paid bonus on performance reviews
i constantly hear commercials on the radio about extended warranties. i thought it was just one station, but cycling through 4 stations i noticed they all push for the same companies. i hear about carshield being garbage, and another one is ox car care. third party companies will always be trash and they push their customers.
Never had a problem with the "factory" backed extended service contract. Ford Motor Company has always paid like a slot machine less my deductible. There a a couple of aftermarket providers that are that good but they are few and far in-between. If it's not factory owned, walk away. Always ask who is the financial backer of the policy; Ford, GM, Mopar, etc. I know Ford offers Ford policies via the phone to Ford directly at cost and at no interest. Pays to go shop around prior to purchasing a vehicle.
I bought a Chevy S-10 back in 1996. It was a 94 had 45,000 miles on it. I was young and dumb at the time so I bought the extended warranty only got to use it once for the starter motor then after that was fixed. Started having engine coolant disappearing every time I took it to the dealer they said they couldn’t find it leaking anywhere. I ended up fixing it myself and took the balloon head gasket back to him and laid it on their counter and said I thought she said my head gasket wasn’t blown so now I just fix my own cars.
They've gotten even more aggressive about it too. I had a financial advisor at the Subaru dealership I bought my BRZ from flat out call me an idiot for not accepting the extended warranty. Then even after I refused they continued use scare tactics like breaking down the cost of how much my infotainment screen would cost if it were to break. Now my car was new and not an older used car so I didn't buy any of that BS. I believe if you just take care of the car you'll never need the dealership anyway since I do my own maintenance.
If that guy would have called me an idiot, I'd have walked right out of there. I don't care what car it was. I've seen scare tactics used and if you don't know any better it sounds horrible. I once saw a salesperson in a Staples tell an older couple that they needed Microsoft Office or their computer would stop working in 60 days. When the guy stepped away I went over to them and let them know that was BS. Whatever people can do to separate you from your money, they will try it.
He was really counting on that commission 😅
@edme4007 On our last 3 Crosstrek’s(17, 18 & 20 6spd Premium’s) all bought new they tried EXTREMELY hard to get me to buy the Extended Warranty… like ummm no-it’s brand new. If I decide to keep them past 36k I’ll come see you about buying one🤔
When I picked up my 17 WRX Premium 6spd with 18k miles in 11/21 I did purchase the MaxCare Warranty (which I’ve had awesome luck with on other vehicles)-only to get home and discover the car was still covered by the OO’s Subaru Ex Warranty. First service the selling dealer called him up-was like are you canceling this? Said nope-paid the transfer fee, canceled MaxCare and got a basically free warranty🤣👍🏻. Subie owners are some of the coolest people💯
This is exactly why I watch Ray. I come from a different industry than you. Your depth of knowledge, expertise AND experience are worth your weight in gold!
Used to be a Service Writer in a dealership... 1000000000% confirm most of this. I don't know that I would automatically assume that it was always malicious. Everything that came across our desk to get approval from the sales dept had the parts list and all that jazz. Everything was recorded on the ro history. None of this 'disappeared' parts quotes tied to it etc. It is awful to have to deal with these companies calling for approvals / trying to adjust prices.
You are 100% right Ray. I worked for a stealership for many years and saw many unhappy customers regarding extended warranty plans. Keep up the good fight and ignore the haters.
I worked at an Oldsmobile dealer as their trans man. Quite often the warranty company, either GM's or other extended warranty, would send out an adjuster. He would look at the trans with me and say "Declined". I would right then and there start putting parts in boxes I had on hand for the purpose. While He was there I would start putting them in the trunk. Almost invariably He would say " What are you doing?" I would tell him that I was done with this car tow it out of here. If it was a front wheel drive car, this was a big deal. Quite often He would reconsider.
I have it and had it on previous cars from Carmax. Never had a problem with repairs.
You are the best. Thanks for informing the public for the scams that occur. I had the same thing happen with a cell phone 20 years ago. I spent $9.95 for the warranty every month for 10 months and had my phone stolen. Well I file a claim and took them 3 weeks to honor the claim. I had to spend a $35 service fee but the worse of it I got a used phone with a dead battery. I even had to spend $10 for a new battery. It would have been better for me to hold on to the money I spent and bought the same phone new with a 1 year warranty.
I have other examples that warranty contracts are written on toilet paper. They benefit the car dealerships and warranty companies but not the customer who works hard for their money. You are the best and caring for your fellow man👍👍🤩
🛠
You deserve a case of brake cleaner for your trouble. 🛠⚙
My problem with the extended warranty is that they refused to cover a clockspring that needed to be replaced on my Subaru Forester to fix a horn issue. Even though "Horn" was listed on my contract Revelos still refused honor the warranty. I ended up doing the repair myself. Part was $199.00 from Subaru.
I think my favorite version of this is when dealerships pocket the money, fill out the paperwork for the 3rd party warranty, then tuck the paperwork away hoping you never use it. But if you DO use it, then it's "WHOOPS sorry we just forgot to file the paperwork and payment here you go!"
I'm still trying to find a way to get my extended warranty to pay off my studen loan debt. I don't have either of those things, but the phone calls I keep getting insist otherwise, and I think I just need to put the two parties together and let them hash it out...
Ray, you are a Honest and decent Mechanic. I wish you were closer to NJ. You are the BEST- Excellent Teaching Skills
As hard as the loan officer pushes for these bogus warranties tells you all you need to know. Thanks Ray.
I made the mistake of getting an extended warranty on my old truck back in 2008. A couple years in it needed work. I read the fine print of what was covered, tried to make a claim as it was written black and white that the work was covered, and they denied it right away. The next time round when buying a new truck I happily turned down all of their extra's.
Sorry if this is a bit off topic, but I discovered another dealer scam. I bought a "new" Mercedes SUV that was listed as an 'executive demonstrator' with 5k mi. Clean Car Fax/Car Guru reports. Later learned that my new car was actually a dealer lease that had been in a rear end collision. The tailgate had been replaced along with extensive rear repairs. Since it was never sold I became the first registered owner other than the dealer. 7 years later the car has been great but I was still fooled, and it was legal.
If a claim was never filed on a vehicle involved in a collision and the owner ( private, dealer, lease company, etc...) paid for repairs out of pocket, you'll never know. Here's a heads up. Carfax is just a dealer tool used to scam consumers. Always have an inspection done before making a major purchase. ...Which is what Ray says here.
Em I the only one that loves extended Warranties . I’ve had a lifetime warranty on a 2008 jeep, bought it new added a Chrysler lifetime warranty $1600. To this day I take it in and the dealership fixes everything under warranty. I’ve had 3 axles , differential, radio , water pump (2) , trans pan and gaskets, a/c compressor, condenser. Those are the items I can think of. I do pay $100 each visit. Also have 2 other jeeps with same warranty but much newer and I payed more for the warranty. As far as I know Chrysler stopped lifetime warranty’s. You also have to keep your vehicle as long as I do or it wouldn’t pay off
Manufacturer extended warranties are different than third-party extended warranties. You bought a good one.
I had an extended warranty once. ABS system malfunctioned. Dealership turned in the claim and it was denied. I screamed bloody murder to the point that the owner of the dealership (Also served as general manager. Decent guy.) got involved. He called the warranty company and the claim denial all boiled down to whether the wires leading around the rear axle to the ABS sensor went over or under the axle. That was it. They denied it because the wire went under the axle and they said that meant it had been altered from factory.
End result was the dealership covered the repair AND discontinued selling warranties from that company. Since the dealership was a chain of 12 locations, it was a substantial monetary loss for the warranty company. Unfortunately, the owner died 2 years later and that dealership went to shit under the new owner.
Do you think your claim did him in? Stressed?
Had the same thing with my f-250 death wobble brought it back the same day they can’t find anything wrong held truck for 30 days and then had me pay the extra from the warranty for the entire front end sueing them ran they sold me a truck that didn’t pass a nys inspection with a bad front end
We bought a 2017 RAV4 with 44000 and change on it, 6 months ago. Used dealer was pushing the extended warranty, and was almost a deal breaker, because it came down to a tiff of what if something happens with the vehicle. And they could NOT understand what i was saying “ I AM THE WARRANTY!”…
This exact thing happened when I bought my car timing cover,extended warranty every thing. but i did get a $4500 transmission replaced for $800 before it expired
thank you for always speaking out ray
this exact thing happened buying our latest vehicle. My 'spidey senses' were screaming at me , but my wife wanted the car.
This was supposedly a reputable dealership,but they are all the same.
I work as a tech at a dealership...they are All the same
tell your wife she was wrong and remind her about it every day
We run into this literally every day when people buy these garbage extended warranties and find out whatever they need fixed isn't covered
Thank you Ray for your honesty, you're one in a million, they don't make them like you anymore. Man I wish you were out where I lived you'd be my mechanic I've been watching your channel for over a year now and love how you show us how things work. Keep up the great work, and don't pay attention to the haters because that's all they are.
In 67 years I’ve only purchased an extended warranty once. That was with our new, in 2016, Ford Explorer. It ended up paying for itself with a leaking timing chain cover after the 3 year 36,000 mile warranty expired. However I worked dealerships for 8 years and, one, would never buy a used car from a dealership in the first place and never by a third party warranty on a used car.
What really amazed is you were able to get that big ass dully through a fast food drive thru lane.
That is exactly what happened to me about ten years ago! It was from the local Toyota dealer!
You went right through that stop sign, hey turn yourself in.
I only bought two in my entire life at least automotive wise. The best I ever recovered was about half of what I paid. I was surprised though when I purchased my latest used vehicle in 2020 just how many entities that tried to sell me an extended warranty for it. The Credit Union that I had dealt with for years pushed hard to sell one. Then my insurance company offered one(also a long term relationship) and finally of course the dealer. Who was astonishing the least high pressure of them all. They just mentioned it. I declined all and other than a couple of small items covered by the dealers bumper to bumper 30 day warranty after purchase. And the vehicle has been fine ever since.
Ray driving in rain thus Ray being Rainman.
He's an excellent driver, yeah.
Rainman Ray driving in the rain, man
I see what you did. 😂. Oh one minute to Wapner!
@@kevincurry4735 gotta go to K Mart….definitely, definitely K Mart
Kmart sucks! 🥹
Bottom line is, get a pre purchase inspection done at your preferred mechanic shop before you buy the car. If the dealership won’t let you, then don’t buy from that dealership because it’s obvious they’re trying to hide that leaking timing cover.
Even 50 years ago, my father said that extended warranties were a waste of money, and just went with the standard factory warranty - he said "if there's something seriously wrong or defective with it, it's going to show up in short order".
He also said "never buy the first year of a new model car - let someone else be the guinea pig, and find out if there's any defects with it that slipped past the engineers, or of the whole thing is just a lemon on wheels".
You could make the same argument regarding those "extended service plans" the big box stores try to get you to purchase, when you buy a new home appliance, like a washing machine or refrigerator or lawn mower.
One time, I really pissed off the salesperson at a big box store, who tried to push one of those service plans, when I asked them back, "Are you telling me this appliance is so poorly made, that I need to PLAN on this thing failing after only 3 years and getting it fixed? If that's the case, then I need to check around and find something else." The return stare I got from that guy would have burned holes in concrete, lol.
This is almost verbatim what I posted. My dad told me the same thing and did the same thing to pushy salespeople. Very nicely said and agree wholeheartedly.
Did that at my Honda dealer. When the finance guy started in on the extended warranty I said I am buying a Honda because it is advertised as a great, trouble free vehicle. That pretty much put the guy between a rock and a hard spot😅 He did then tell me that I could come back at any time and get the extended warranty. The Honda Fit is a 2009 and has never needed any "covered" repairs, just wear items.😊 I saved thousands of dollars😊
I bought a new TV they tried really hard to get me to buy a extended warranty, I told them if it prematurely failed I was going to throw it threw the store front window. End of conversation !!!
I bought a Carmax extended service plan when I bought my Fusion from there 7 years ago. Only ever used it once, when the purge valve went out a year later.
I agree that the only extended warranty/service plan anyone should be buying are the ones offered through a manufacturer.
My car is payed off 👍
Both of mine are also
I've only got the extended warranty once. It was on a used Chevy Celebrity. My wife said I was nuts. We had 4 days left on the warranty when she knocked out the harmonic balancer on the front of the engine and we had to have to towed. It cost me $50 out of pocket for the tow and the warranty paid the rest. Oh, and I had driven the car 40,000 miles also. That paid for the warranty plus $500. That's the last time I got a warranty. Most of my cars since have been either new or new enough I haven't bothered with the warranty because as you said, I felt like I was getting scammed when i read the fine print in the warranty they wanted to sell me. Thanks for being the honest guy you are. Keep up the good work. Oh, enjoy your mickey D's
Buy a car in cash, google average used car payment, put that figure into a separate fund from savings for repairs and/or replacing vehicle (when catastrophic failure). You’re not in a loan, you’re not paying interest, and not carrying that mandatory collision and comprehensive that the loan company requires. I have 2 cars, paid in full. Second as a backup and occasional rotation. And a meaty savings account for maintenance and repairs that’s getting 5% interest- paid to me.
Cars that are 10 years or older with high mileage are at their bottom in depreciation- easily negotiated. If you are lucky, you can grab a vehicle or two for the price of (1) extended warranty/service contract.
Then you will have two vehicles. If one breaks down, you have another. With the average used car payment, in 3-4 months you can have another second vehicle. Vehicles don’t last.
And for those who say “I can’t afford to buy a vehicle in cash.”
But they have the money for their $500-$700 payment a month. Buy a car for a $1000-$1500, drive 3-4 months- you’ll have $1500-$2100+ saved to get into another car. Sell that car you got for $1000-$1500, put that $1000-$1500 back into the savings. Repeat the process every 3-4 months until you have a vehicle you want. It’s about patience and delayed gratification. In a years time, you upgraded from $1000-$1500 vehicle to a $5000-$6000. Paying cash and learning the discipline in your finances.
@joe_-bf3ok what kind of junk do you drive? What a miserable life it must be.
In 2016 we paid Mopar for factory warranty past the basic 36,000 mile warranty on new vehicle. Cost $750 to extend mileage to 75,000 miles
We once bought a used van at a new car dealership. I asked to see the service bay inspection and write up for what is needed or recommended. They said they did not have one. I asked so you got it, cleaned it and slap a tag on it? Sales fleecer said of course not we check them out. I again asked to see what was checked out. Was then told it is proprietary information which can not be disclosed. We walked out.
that is a scam dealer, legit dealers list everything that was checked, and full warranty is documented
Ultimately it comes down to the customer to be knowledgeable and inspect the vehicle thoroughly. Nobody has ever stopped me from popping the hood and checking for leaks. Or inspecting the tires. As the customer you need to do the due diligence of either inspecting the car. Or paying a good honest shop for a pre purchase inspection
I actually had a dealer add a extended warranty to my contract without even asking me ,never said a word because I told him I didn't want 1 b4 the paperwork even started then when I came back the next day because both front Brake calipers were cracked they said nothing was wrong with the brakes after I already found the problem then they tried to charge me for the inspection and new brake calipers because I didn't get the warranty . And after almost going to jail I ended up doing the job myself and Sued them for the costs and ended up getting a bill from the warranty company saying I owed them money for the extra work. 2 years later and I'm still fighting.
Calipers were cracked? Never heard of, or seen that one before.
@mikeday8826 ya both pistons in the front calipers were cracked in 3 places and the piece of metal in-between the pistons were cracked. Cadillac ats.
@@ianrace4066 oh ok, that makes sense. The previous owner must have been driving like an idiot, and overheated the brakes....I like those little cadillacs, my wife used to have one.
@mikeday8826 ya it is real nice now I put in a ls3 and a manual 6 speed.
Hi Ray, they do it differently in NZ. The dealer gives you a three month extended warranty but it basically covers "jack". I had a unseen leak in the trunk, it shorted out the board controller for the tail lifters, rang the insurance company and got "sorry don't cover electrical components, engine only story".... $5k later. NZ warranties, not worth the paper their printed on.
time to dust the gauges
Yea she’s a little dirty
Ive always knew this , being a wrench for 49 years!!! Thanks Ray for putting it back out there!!
Interesting that Steve Lehto has a video warning about third party warranty plans today as well...
Ray you are spot on with the “warranty debacle” on used cars. The number of times I’ve seems this play out while working at different dealers(all franchise dealers to boot) is crazy. Best ones though are the contracts they’d sell to the customer-then pocket the money & drop it in there “junk drawer”. Finally caught up to our F&I guy-ended up being led out in handcuffs💯🤔
I never buy them
im a service advisor, been one for years at many diff dealerships and we use peoples extended warranties everyday, they are not a scam. with that said do your research and find a good one, not the ones that you get letters in the mail or the scam phone calls. but do your research, there are good ones out there
The point of trying to get a used car prepurchase inspected is really hard to do. Most shops they have to be scheduled or are having undertrained person at a Quick Lube why does not know to look into areas that seem freshly painted. I'm in St Louis now and the majority of the decent shops are at minimum 1 week out but closer to 2 weeks to be seen. The dealerships know this and use it to their advantage.
Good things come to those with patience.
@@justpray365 I understand the point your making. However their are people who have to replace a car or truck or not work or in my case if the car went down my moms life would be in danger due to her health. Other forms of travel especially in several locations is epically expensive without your own transportation. Patience is a venture however a home to live in and food to eat for most is dependent solely on personal transportation. It's great to give one liners it's harder to live them.
@@MrAaroncissell
You solidified my point. If your mom’s life would be in danger if your car went down, then it’s even MORE important that you have a competent mechanic check it out before you buy it. And even more important, is that you make sure that ALL PREVENTIVE MAINTENANCE is done on the car you currently have. Which means, take the car to a competent garage and have them look it over and do some testing to make sure it doesn’t give you a surprise breakdown. I have always found that it’s definitely worth having a backup car for emergencies that you can’t plan on. I had a friend that found this out just recently. If for some reason you cannot have a cheaper backup car, then that makes a Pre-buy checkup, and preventive maintenance even MORE important.
@@justpray365 Well it is good to know that you are one of the few people that cam afford two cars and all the cost involved with it. However again you cut TIME out of your equations. I take good car of the cars we have, I help as much as possible with friends cars. But money is extremely tight for the majority of people. When they hit a wall like the car decided that it wanted a divorce from it's water pump and through it out on the highway. No prior external leak just rotten, broken bolts while traveling on the4 highway at 70mph and the engine is now toasted. How much TIME do you think that people have. Our own government states regularly that 4.26 out of 10 people are in poverty and about 12% more near poverty. That puts just over 5 out of 10 people who have any break in work or a major medical issue loosing all security meaning Home and Food. #1 issue is transportation. Time is the factor and 2 weeks to have a known good mechanic to look over a car is simply not doable. With my mothers medical conditions if the car that I can get her in and out of goes down and she needs another sudden trip to ER for 24 hours of treatments the added $2500.00 transportation bill added to the Hospital bills I already account for in advance as best as I can. This means that I will be shifting/offsetting most of my bills for a few months while trying to repair the car and catch up. The point is the "just over 5" out of 10 that can't afford the time and delay. the dealerships know the situation and use it to their advantage. I am glad that you have options. However It is still easer to give one liners then live them. I hope you never have to deal with the situations I have described because it is crushing and yah everybody else is right and doing great.
Thank you Ray. You are absolutely right.
I bought a two-year-old Camry with an extended warranty from a Toyota dealership and it worked very well for me.
My dad used to have Dodge Ram 1500. The warranty covered several repairs that were 2x the original price of the warranty. That one definitely worked out for him. I'm going through extended warranty with my Frontier. They covered a head unit & a power steering line. My deductible is $0 and they've covered both items. It has already paid for it's self.
But Car Shield administrators have saved their customers billions. That’s billions, with a “b.” (I watch infomercials on my spare time 🤓)
CarShield helped me out but it only saved me 15 dollars since I had to pay for months 99 dollars by the time it was covered and the 100 bucks you first have to spend ,I quit CarShield
They really tried to push an extended warranty on me when I bought my 2016 Grand Cherokee. It was 3 years old and just come off a lease and was immaculate under the hood. It had 36000 miles on it. When I started watching you on U-tube Ray I had no Idea of all the problems these jeeps could have, but luckily with 110,000 miles I've had no problems yet. I do take care of it.
Good day ray and hi to Dave
👋👋👋
When I worked for CompUSA back in the 90's and early 2000's we sold extended warranties, EVERY SINGLE PERSON who got one we saw at the repair counter being told the warranty would not cover their computer's extended warranty did not cover the repair a year or so later..i had even bought one myself when i got a new computer... i had to go to the BBB and FTC to get my money for the needed repairs....
I got a car new, and close to two years of ownership I got a letter from the warranty firm, asking if I would like to extend the coverage of my warranty, as in the amount of parts covered by it and not the time. I went to my dealer with the letter and asked what was that all about, they explained and I decided why not, it wasn't that expensive so in the end I did get the extended warranty just for my peace of mind. I've had no problems with my car in the now almost two years of ownership.
Thanks for this information. I never liked extended warranty but have bought some in the passed. I have sent video out to my gang of friends and family so they know and understand.
Here is a extended comment, for your algorithm
And, another! Also adding a 👍🏼.
@@scottzehrung4829 im here to talk to you about your comments extended warranty.
I bought a car quite a while back (a 2005 freestyle with 98000 miles), the dealership sold me 4 after market warranties so the whole car would be covered. I got home and read the warranty brochures and saw that there was a lot of over lap, I found that I needed only 3 (so i thought) for a 100% coverage. Went back to the dealer and the finance guy said oh yea, you only need these 2 and dropped the price almost in half for the 2 I bought. They did save me a lot of money as I ended up using them for several repairs. I only had to pay $100 for each repair, I feel I broke even at least if not edged out ahead. In my case it worked out. i still have the vehicle at over 215,000 miles. Though I do agree with Ray because most people pay full "dealer" cost for the warranty. You can but third party warranties for less elsewhere, I had one after those ended and paid monthly fee for a period of time. This one saved me $7000 when my CVT had to be rebuild, also took 5 weeks to get that done from submitting to the warranty and the final repair being done. 2 week for the inspector to get out, 2 weeks to approve the payout, 1 week for the rebuild.
They tried hard to sell me an extended warranty on my 09 Jetta. I bought it in 2010 with 4k on the odometer. It still had plastic on the carpet and nibs in the tires. I declined the warranty and they tried applying pressure. They asked me about scenarios like a bad tire, to which I replied that I could replace for $100 (and tires aren't covered anyway). Then they asked what if the A/C compressor failed and I replied with "I could replace it myself with a reman for $200". I told them that it would strange to have that much problem with a new car, since it would normally be under warranty for the first 4 years, and it's only a year old. The manufacturer wouldn't risk building something of such poor quality that it needs multiple warranty claims in the first few years of existence. They finally ran out of arguments and left me alone. They tried playing me at every step and I was two steps ahead. I came with a check to avoid their financing BS. I was in and out in under 2 hours, including the test drive. It was funny, we test drove the car and then he said he would go check to see if it was available. I called and made the appointment for that specific car, which we went and looked at on the previous Sunday (to avoid any sales people). I stopped him before he could walk away and asked him why he would have me test drive a car that wasn't available for purchase. He couldn't answer with any good reason. I told him to stop trying to play the sales game with me. I was there to buy the car, not for him to sell me it. The car was dealer driven for 6 months, sold at auction, then sat on this dealer's lot for 4 months before I bought it. I had no concerns that it would be a problem. Here it is nearly 16 years old, with one warranty trip for a secondary air injection warranty, a crank sensor, and a trans replaced for failed diff bearings (VW sent out a TSB for fluid level increase by 0.2L). I've been through the original radiator fans, blower motor and resistor (didn't have the digital HVAC), tires, brakes, calipers, and other normal wear and tear items. It still runs, drives, and stops, but makes a few aging sounds in the suspension. The springs are getting a little shorter every year. When it looks like a low rider, maybe I'll replace the struts and springs! Lol
Sounds like it should be illegal. Should also ask a dealer why they are pushing the extended warranty so hard when you're buying a car from them. Would make me think twice buying a car from a dealership that is pushing hard for you to get the extended warranty. Definitely walk away from the deal if they are pushing hard for the extended warranty.
My wife and I bought a used F250 from a Ford dealer. They sold us a 36 month 36,000 mile warranty for under $3.000. Being a diesel, i don't know how to work on it (I can do just about anything to a gas burner). Well, it developed the dreaded wobble in the front end. A shop quoted almost $6.000. The dealer got it covered.
Im not usually an extended warranty guy, but it worked out this time.
sending brake cleaner vapors 2 you as a good will from fellow worksmen
I bought a 2013 G37 earlier in the year with cash and they didn't make much money off me. I got a great car but salesperson said all the fluids were changed. I contacted the service department at dealership and they didn't do any. I took it back and got them to perform brake fluid change per 90,000 mile service schedule. They tried to sell me on the extended warranty but I did my research. Long story is that you shouldnt buy the warranty unless the vehicle is hot garbage...Dodge
Hey ray been a sub for a long time let me know if you need anything I would love to help you if you got some mechanic problems, I went to college for Automotive so if you have any questions for any vehicle, let me know. I’d be happy to help and nothing is coming up so let me know I can always help.
Also good morning
I actually had a good experience with a warranty company. I didn't get it through the dealer, I bought it straight up through my credit union. About 100mi before the warranty ended (80k) the transmission blew out completely (Nissan CVT). I had about 8k worth of work for a $250 deductible. New tranny lower, control arms, oil pan leak and a few other things that were not considered wear or consumable like brake pads.
First
You cheated! LOL
I am here, late but am now. ❤
@@PowerStrokeTechTalkwARod 😂
And last to get laid
Hell yes 250th🤗👏👍💪💯
They got me too @RainmanRaysRepairs . In my case I got a policy that covered engine and transmission only. Ended up that it had a blown head gasket. When I mention the policy, they tell me that the policy was engine and transmission but excluded gaskets, wtf. So they pocket the money on the policy and they pocket the money on the repair.