In my 40 years as a Master Tech , I have little to no confidence in aftermarket warranty companies,they almost always wiggle their way out of paying. That leaves the customer pissed off at the warranty company and then the shop. The problem is that the shop is the face to face with the customer but the warranty company is not. They simply don’t care and they are just raking in the money.
we as a shop refuse to accept aftermarket warranties. Why you ask? Last one we accepted kept us on hold for hours, demanded pointless tests and diagnostice the customer paid for out of pocket (they refused to pay). Then the cost of diagnostics was more than they covered. It was nearly a denial.
BINGO BINGO!!! Just like the Home Warranties!! People send their payments in month after month but the local shop is the one on the hook to say no!! Meanwhile the fats cats in the boardrooms don't even have to deal with the stress of a customer screaming and yelling at their businesses and putting down shops to others!!
I agree!! I own a shop, people have no clue how bad these people are. Some places won't warranty say a.bad transmission if you can't prove or tell them why it broke. It's absurdity.
Yes Sir......im a one man shop owner and I can't and won't deal with these extended warranty companies because of what you just said !!! And it's 💯 the truth...
One man shop owner here and what you said at the end of the video is so true! Been on hold long periods of time, killing productivity. I’ve done 2 claims for customers with Car Sheild, and other than low balling on parts, the process actually went fairly smooth, but the Route 66 warranty is by far the best company that I’ve worked with! My local credit union sells that warranty with financing so a lot of my customers have the Route 66 policy..
I'll call them out. American auto shield. The absolute worst. Nickel and dimed us to death. Wanted us to use their parts which ended up being wrong, didn't want to cover our labor, etc.. Customer ended up paying over 2 grand out of his pocket to replace the turbo on his bmw. I think they covered a little less than half. They are the reason we no longer accept extended warranty companies. Not worth the headaches.
Been a tech for 40+ years. Now I own my own shop. I tell clients that I do not deal with the insurance company. Oh they might have people come to my shop and verify damages (last one was wiring caused by rodents), but I deal directly with the client, and tell the client this is how much I charge, and this is what we replace, period. My approach wakes people up. The so called extended warranty companies don't cover nearly what needs to be done, and I have yet to find one that covers diagnosis, so I tell the client what we charge, and let them get reimbursed later. The client is responsible for paying me. They can later get money from these companies, but I get paid first before the vehicle leaves my shop. Props to Farmers and State Farm. I have seen them step up and take care of their clients when cats are stolen, or rodents cause thousands of $$$ to wiring harnesses. Love the videos. Sorry to ramble, but you hit a nerve. Jim Eve's Automotive
This is exactly the kind of content that is useful to me. Please keep it real and help us folks understand how best to deal with world of car maintenance and repair costs.
I've recommended this channel to alot of my colleagues because of how transparent, honest and you guys truly care what is going on in the industry. Always love seeing a new upload about anything, especially when it's a deep dive to try and get all the information out.
Go Royalty! I had a warranty company tell me I had to pay the difference between the value of the car and the total cost of the motor. Thankfully I bought the warranty from the dealership and that dealership did right by me by getting that warranty company to pay the full amount. Saved me $5,000.
That's the only way I'd buy an extended warranty, from the Dealer and then I hold them responsible for any repairs and getting paid. These aftermarket ones are a crap shoot.
I refused the outrageous warranty the dealership was trying to sell me on my 2014 impala and have been wondering about these extended warranties, so......great timing on this. I look forward to the future video with more information . Thank you for doing these videos.
Preach it! 100% Due to the phone calls or the onsite inspections I just have got to a point I don’t mess with them anymore. Some pay decent and quick but the good doesn’t out weight the bad so I just don’t mess with them anymore.
All valid points, you hit the nail on the head about warranty companies, I truly believe that they all suck! They will find a way to not cover whatever you are trying to warranty based on the situation! Air conditioner is a perfect example of ancillary parts they will not cover! Just save the money you pay them in a savings account and then when you need a repair you will have thousands saved up!
Where i used to work, we pretty much declined to deal with the warranty companies. As you stated, we would spend hours on the phone to find out what WASN'T going to be covered. That time was never charged to the customer who was now upset that they thousands they spent was worthless. Our policy became, "we will notify them of what repairs are needed and give the estimate. It's up to you to fight for reimbursement. "
One local transmission repair shop in my area has dealt with Car shield, found out they were a pain in the ass to deal with and cussed out the person on the phone. C.A.R.S. is another one that is a pain in the ass to deal with and they supply the parts for the repairs if covered.Car shield has been fined 10 million by the FTC recently,misleading ads
Good information to pass along! It’s sad some folks do not realize those places end up costing you more in the long run vs just paying for the repairs yourself.
I bought a car from Car Max in 2012 and bought the extended warranty . I only had to use it one time and the service manager at the Pontiac dealer said that was the quickest and best response to an extended warranty he had seen.
My extended warranty is in the form of a tool box in the back of my truck and some industrious and generous you tubers! One rainy night when we were pulling a 36' horse trailer back from a horse show in Louisville KY, my extended warranty was me repairing a broken copper brake line by wrapping a wad of dental floss around the broken tube that was now the new flare that busted. Crammed the tube into the fitting, cranked the nut down tight as I could without stripping it, bled all the brake calipers and drove on home about 300 miles or so.
This is the same in the appliance industry. I get paid a percentage per job and the manufacturer we deal with covers 90 days after a repair and if something happens that's not even related to the original problem we don't get paid extra. So we have to guess what could possibly happen to an appliance and order common fail parts to get passed the warranty period. Plus the 2x labor jobs they reduced to 1.5x labor.
I worked for CarMax years ago, they have several options and they are all quite good , my C class needed a transmission and I paid the deductible of 500 bucks no stories no hassle . Flip side the "Cars" warranty that we will no longer deal with at my present shop, is a nightmare for customers.
2 years ago my 2017 Pathfinder had a trany go at 68k miles. It was serviced at the dealer & I had Nissan Security Plus extended warranty. They replaced the trany ( $5500 ) & paid my rental for a week, $100 deductable.. was very pleased.. 9 years ago I had a trany go at 63k miles Ford Exployer. I had Ford ext warranty & Ford refused to pay because I didnt have trany serviced at 60k miles.. I owned over a dozen Fords over 30 years & will never buy another Ford, ever!
We used to call it F.O.R.D ' Found On Road Dead' A BMW Z4 had a sticker on the transmission stating that the transmission fluid was a lifetime fluid...I assumed that BMW meant the lifetime of the warranty.
I've got hondacare extended warranty, commercial. I'm a mailman and beat the crap out of vehicles. Front end is just destroyed, and the dealer keeps telling me everything is fine, nothings loose or worn. Right, literally sounds like a car with 500,000 miles and the original front end components. Trying a different dealer next week.
Funny enough, what you’re describing is what we deal with in medicine, wasting time working with insurers rather than actually treating patients. Also one important thing you didn’t mention - maximum coverage amount per incident. I remember recently people getting 3rd party extended warranties on their Porsche 991.1 GT3s. Those had 10 year unlimited mile powertrain warranties largely due to an oiling issue Porsche discovered, which began to expire recently. Well, these warranties did cover the engine replacement, about a $90,000 job, but the maximum payouts per event was around $12,000. The warranty itself was about $4,000 for 3 years.
It's not just cars. My wife is a dermatologist. Insurances companies don't want to pay for the meds she Rx's to her patients. She has to spend hours per week writing to them to explain why this more expensive 10 year old drug is needed over the 40 year old drug that they already tried that didn't work. Forget about getting them to pay for all the new drugs you see advertised on TV. Sometimes she is able to get samples and the new drugs are really amazing compared to the old stuff. If someone comes in with 10 legions insurance will only pay for 3 to be removed at time. She has to keep bringing them back or work for free. She has done both. On the other side of it patients get mad and refuse to pay the copays. They blame the docs for the insurance company not covering their issue. She draws the line at not getting paid. She unfortunately will fire patients. It sucks all the way around.
On the flip side of that you have hospitals charging themselves rent for a clinic building that they end up passing to the customer as a "clinic fee" (I just dealt with that - sleep lab run by the hospital charges themselves rent and then the hospital charged me $300 just for the privilege of walking in the door for a 30 minute consult with the nurse practitioner (not even a full doctor) to tell me I'm doing great come back next year. Customers get screwed coming and going.
@@douglasphillips1203 Unfortunately medicine is going that way using mid levels. They pay less if a mid level sees you vs a doc. Hospitals and private docs are not the same thing. I get what you are stating though. Docs are just like any small business but there is insurance involved. Many docs are going cash only. It's going to be a thing in the future. People with crappy insurance are going to see mid levels or docs with not the best training. Medicare and insurance are driving this sinking ship. The insurance companies follow medicare rules. Many people don't know that. Every year medicare makes it harder and harder for docs to practice.
And the actors that are promoting Car Shield are a bunch of A holes for pushing this garbage on the most vulnerable ,, Car Shield could suck on these Nutz ,,,,
Most car warranties suck, period! *Customer -* There's a dead fly on my front grill _Shop_ - We can sort that out under warranty *Customer -* My car has only done 8,000 miles and the transmission is toast _Shop_ - The £1,000+ a year warranty you're paying for, won't cover it, because manufacturer said it's driver error!
A little unrelated- American Home Shield also absolutely sucks for home warranty. My in-laws were without A/C for a month in July/August in Texas (100°+ everyday) because of this type of stuff. FTC needs to step in.
These warranty companies have 3 pages of big print that detail what the cover. Then there are 35 pages of small,print detailing why they don’t cover the parts in the first 3 pages.
Great video. Extended warranty companies' lack of accountability and responsibility needs to be exposed. As a shop owner, they are a thorn in our business operations. I do vouch for Carmax warranty. They have been decent for us for many years. Thanks for the Post!!
One thing that you need to remember about insurance companies is that need to take in a lot more money than they pay out to stay in business. I know someone who sold insurance for over 60 years, and he told me that auto insurance companies (liability- collision) set their rates, so they take in twice what they pay out.
I once had a Route 66 warranty I purchased from my credit union at time of financing a used car. Zero deductible, and bumper to bumper for a surprisingly reasonable price. Transmission went out, and they paid for everything except the fluid. I also had them fix a couple accessory and aux switches and stuff on separate occasions. My mechanic commented on how easy it was to deal with the warranty company and how they were surprised by what was covered. This was 15 years ago though.
I've been an automotive tech for 23 years ASE also, unfortunately having a stroke in 2015 has taken me out and it's locked up part of my brain, that's the most important part I needed, watching your videos has helped me so much you wouldn't believe. Keep it up. Any suggestions on a decent scanner with oscilloscope,?
I have a desk chair bought at Stap###s. I bought the warranty. The warranty covers seams splitting open . My chair has a seam split on the seat part. I filed a claim and was denied. They said it doesn't affect the use of the chair.
It reminds me I had a customer who I just bought a used Cadillac with a 4.1 it had 77,000 plus miles on it when he bought it and a little over 78 000 the camshaft went flat (Cadillac was notorious for that with the distributor gear also) the warranty company wanted to see his records on oil changes he barely has a thousand miles on this vehicle they refuse to pay for it because they told him he did not maintain it properly he bought it used and got the warranty from them!!
The FTC has fined CarShield $10 million for deceptive trade practices, specifically false advertising. It couldn't have happened to a better warranty company.💣 Larry in Draper, Utah
Set that money you would have sent to a warranty company into a separate bank account and when your car needs repairs "it's covered". You get to decide, not some company.
Route 66 has been good to me. I also think it takes special person to think they can pay a company monthly to never need to pay for repairs. Just pay that money into a saving and if your car doesn’t brake the money is all yours.
Geico has the best and cheapest, but must add to brand new vehicle. $250 deductible and covers everything. Plus they told me to take to dealer to get fixed, no questions asked. 7 year 75,000 mile warranty. I overheated at 74,000 miles to get brand new motor.
Same issues in UK. Whats not covered... EVERYTHING by the time theyve done their wriggling. We refuse to deal with them and still get to do most of the jobs anyway.
I owned my Ram truck just under 3 years when I reached out to Zeigler to get a MOPAR Max Care warranty. They gave me a nice discount on the price for a one time payment. 2 years later I needed a heater core replacement and the dealership had no problems getting it approved. The dealership service manager also said Route 66 was a good warranty.
It was so frustrating for me as a technician to have to spend time to diagnose it, only to have to drop EVERYTHING I'm doing for an adjuster who never shows up in the time window allotted, pull whatever I'm working on out, and pull it back in AGAIN. Things like these make people stop being techs. I'd still be doing it if I had gotten compensated for all the non-repair unpaid hours.
Great summary of extended warranty, thx. Would it be possible for you to do a video on the best all-time 4x4 non-diesel truck (after year 2000) that is the easiest and lowest cost to maintain that you ever came across - leaving purchase price out of the equation? Maybe you can do the top 3 or something like that. I know you did a similar video based on a certain $ being spent to purchase but would the answers be the same if money was of no concern? Seems like many of the newer truck are problematic. Manufacturers seems to be building them to fail and cost the customers thousands to maintain. Not only list the top 3 but also state the reasons why they are your top 3. Can do the same for SUV’s and Cars. Thanks for the great content, love watching you and your Dad post these, great job.
The home warranty companies do the same thing. They won't cover anything for replacement unless you get all items yearly services and have records. That includes appliances, etc. They will not let you know exceptions or requirements to get service prior to buying the coverage.
Can only discuss company I have: 1) Credit Unions are USUALLY more caring towards members than banks. 2) A number of Credit Unions use a company named "Rt 66 Warranty", in dealing with them since I bought the warranty with my car their customer service has seemed to be great 2) currently have issue with Transmission, was told "If needs replacing with cover 100% cost of used transmission PLUS labor, NO deductible" 3) MOST extended seem to NOT cover ANYTHING electrical OR what they consider "maintenance" ie, Rotors.
The warranty isnt worth the paper its written on. I had a company decline a wheel bearing because the client couldnt provide oil change records since they bought the car.. Also people don’t understand and read what they are signing. There are cap amounts, deductibles and % paid. In many cases taking one of these warranties are sold as “part of approving financing” From a shops perspective these companies are a pain to deal with. They want to send their own people to check out the job, send you the parts and then pay you nothing.
I have no experience with extended warranties for cars but I have had good luck with one for my motorcycle. It’s called Autrella Extended Service Agreement. Covered a fork seal leak, which the dealer and others didn’t expect them to cover, no screwing around and paid my dealer instantly. On my Ducati with semi-active electronic suspension, the bill totaled $1200. Would be worth exploring if this firm does extended warranties for cars.
Former Shop Manager here - an Ex Boss (Who I have a ton of respect for) Came to the conclusion to NOT deal with with Extended Warranties, We would do the repairs, and get pay ment from customer and THE Customer would have to get re-imbursement from Extended Warranty. That put the responsibility on the Owners. (Not us).
My brother has a Dodge 1500 and the coolant flush is required at 100,000 miles! He purchased his truck with a "Warranty for Life" and he got the dealership to replace his engine because of a ticking issue. His truck had less than 100,000 miles Yes the warrenity will fight you tooth and nail!! Good luck!!
Those companies all suck. They wont cover anything but theyre more than happy to take the customers money. Those companies love screwing shops and technicians. Ive dealt with a few of them. They need to be put out of business. Absolutely criminal.
One thing I've always noticed about my family members that purchase these extended warranties when they buy cars at dealers is that nine times out of ten they spend way more than they pay out. Crazy money, like four thousand dollars for a warranty like the cost of a engine or transmission replacement... Then they're financing these and paying interest, absolutely stupid product to buy.
Some shops won't deal with certain aftermarket companies.its not worth it sometimes.they only warranty that's any good is a factory esp.just document all maintinence.
I have one from a Nissan dealer that i got for my Taurus, and they've covered everything that should be covered. Around $4000 for the warranty, and they've paid out almost $7000 No complaints so far by Assurant
Had a dealership replace a lot of parts and never did fix my problem. Save the money and get a "GOOD" shop that takes care of the customer. My shop gives me a great deal/service
They are useful tools to lower cost of purchase. Bargain with dealer, take most expensive warranty in exchange for lower purchase price. Then, go home, cancel warranty directly with company, save even more. I've done this with a buy here, pay here place.
save your money for when things go wrong as most part are or wont be covered worked in car sales early 1970 s and the parts on warranty never failed every thing else did
In many states, automotive extended warranties are considered insurance policies and are subject to strict laws that are enforced by the insurance regulators of the state in which they were sold. While you it is not practical to file a complaint while your vehicle is tied up needing the repairs completed, you can definitely file a claim for damages with the state insurance regulator to seek reimbursement. In many states, you can file this under the Deceptive Trade Practices Act, which awards triple damages. These companies do not like having complaint letters in their files and filing a complaint will usually get you a response from someone upper level that you may be able to get results from. I did this successfully with State Farm in Texas and was able to get reimbursed for an engine replacement. I am a retired automotive service professional with 38 years of service.
Had a 700 mile challenger with a scored cam bearings and stellantis wouldn't cover it because there were no oil change records. Car was only 8 months old
The phone calls and the expensive tear downs that customers often have to pay for. I've heard so many stories, I wouldn't even try dealing with them. I can almost see a class action lurking...
Way back in the early 2000s a friend bought a 94 Z24 that came with a "Wynns product warranty" where aparently they treated all the fluids with Wynns products etc... Well the engine packed it in and Wynns had a new crate engine put in the car with no questions asked... I really didnt think he had any leverage but that company kept up the warranty he paid for.
Very educational! Public awareness! Oh I got ext warranty it's cover! Bend over and grab your ankles and don't look behind you 😢! And days go by waiting for approval to get repairs done! Your in good hands till you need it! Lol, and the nite mares of fiat,kia engine's and getting replacement parts! Hell will freeze over!
I have to add this I have always told people customers included that if you have an extended warranty you will have to deal with the company and collect from them end of story
Yes, they are. In fact, when people mention buying an extended warranty, I tell them to buy one through the manufacturer. The vehicle manufacturer has more ways to make money than just selling you a warranty.
My friend bought one against my advice. 5 months later the stealership hit him with $3k in repaira. His aftermarket warranty covered all but $300. 2015 silverado 94k. Lower control arms, ball joints, brake booster. Parts prices and labor were outrageous; $700 per arm and $200+/hr. The technician said he could not believe the warranty was going to cover it because most would not. However, i think he has still paid more in then he has gotten out. Like all insurance.
I bought an extended warranty from a Ford dealer thinking it was from Ford. It wasn’t. At 50k and two years of ownership the air conditioner died. They said it wasn’t the actual air conditioner but the pulley assembly that wasn’t covered. Then years later I was pressured by the “business manger” to purchase an extended warranty on a new Subaru Forester. I said maybe, but then learned he was selling a third party warranty and I said no thanks. 40 minutes of high pressure BS. He said Subaru’s warranty was third party. BS! Then said if I didn’t buy it then I wouldn’t be able to purchase later. More BS. I did buy it a couple of months before the 36 months was up on the factory warranty and bought it on-line direct from Subaru. I have purchased these on occasion and have used them but the repair has never equaled the premium.
I'm a one man shop and stopped dealing with them 15 years ago, it's a ponzi scheme. I tell them to take it to an aurthorize dealer. You have to tell the customer you're going to spend extra money.
I use the vehicle "make" warranty. i.e. FoMoCo and then just use the dealer for repairs. The key is I DO NOT buy it when I buy the car. I buy it from another dealer that makes a small profit selling warranty. Kinda like buying a part at a dealer unassociated with the dealer that sold me the car. i.e. The dealer selling me the car wanted $10k for 150k warranty. I went across town and got the same warranty from another dealer for $2600. Same warranty.
In my 40 years as a Master Tech , I have little to no confidence in aftermarket warranty companies,they almost always wiggle their way out of paying. That leaves the customer pissed off at the warranty company and then the shop. The problem is that the shop is the face to face with the customer but the warranty company is not. They simply don’t care and they are just raking in the money.
Agreed
Most pay less than 50% and G.E. , Dimension ARE the only ones who do pay as they should buy they may be out of business by now.
Some warranty companies are nothing but scamms
we as a shop refuse to accept aftermarket warranties. Why you ask? Last one we accepted kept us on hold for hours, demanded pointless tests and diagnostice the customer paid for out of pocket (they refused to pay). Then the cost of diagnostics was more than they covered. It was nearly a denial.
BINGO BINGO!!! Just like the Home Warranties!! People send their payments in month after month but the local shop is the one on the hook to say no!! Meanwhile the fats cats in the boardrooms don't even have to deal with the stress of a customer screaming and yelling at their businesses and putting down shops to others!!
I agree!! I own a shop, people have no clue how bad these people are. Some places won't warranty say a.bad transmission if you can't prove or tell them why it broke. It's absurdity.
I found out years ago that monthly payment to warranty company i put in cookie jar for car repairs.
Yes Sir......im a one man shop owner and I can't and won't deal with these extended warranty companies because of what you just said !!! And it's 💯 the truth...
Me too… I agree
One man shop owner here and what you said at the end of the video is so true! Been on hold long periods of time, killing productivity. I’ve done 2 claims for customers with Car Sheild, and other than low balling on parts, the process actually went fairly smooth, but the Route 66 warranty is by far the best company that I’ve worked with! My local credit union sells that warranty with financing so a lot of my customers have the Route 66 policy..
This is why I don’t buy extended warranties. Thanks for sharing the experience mechanics deal with!
I'll call them out. American auto shield. The absolute worst. Nickel and dimed us to death. Wanted us to use their parts which ended up being wrong, didn't want to cover our labor, etc.. Customer ended up paying over 2 grand out of his pocket to replace the turbo on his bmw. I think they covered a little less than half. They are the reason we no longer accept extended warranty companies. Not worth the headaches.
Been a tech for 40+ years. Now I own my own shop.
I tell clients that I do not deal with the insurance company. Oh they might have people come to my shop and verify damages (last one was wiring caused by rodents), but I deal directly with the client, and tell the client this is how much I charge, and this is what we replace, period.
My approach wakes people up. The so called extended warranty companies don't cover nearly what needs to be done, and I have yet to find one that covers diagnosis, so I tell the client what we charge, and let them get reimbursed later.
The client is responsible for paying me. They can later get money from these companies, but I get paid first before the vehicle leaves my shop.
Props to Farmers and State Farm. I have seen them step up and take care of their clients when cats are stolen, or rodents cause thousands of $$$ to wiring harnesses.
Love the videos. Sorry to ramble, but you hit a nerve.
Jim
Eve's Automotive
Agreed. Delt with insurance companies for serious repairs in people's residencies, and those two companies were standouts.
This is exactly the kind of content that is useful to me. Please keep it real and help us folks understand how best to deal with world of car maintenance and repair costs.
I've recommended this channel to alot of my colleagues because of how transparent, honest and you guys truly care what is going on in the industry. Always love seeing a new upload about anything, especially when it's a deep dive to try and get all the information out.
I had one of those companies tell me "we cover that, but we're not gonna cover it this time" and when asked why "because we don't want to".... Dumb
Go Royalty! I had a warranty company tell me I had to pay the difference between the value of the car and the total cost of the motor. Thankfully I bought the warranty from the dealership and that dealership did right by me by getting that warranty company to pay the full amount. Saved me $5,000.
That's the only way I'd buy an extended warranty, from the Dealer and then I hold them responsible for any repairs and getting paid. These aftermarket ones are a crap shoot.
Thank you, this needs saying.
I refused the outrageous warranty the dealership was trying to sell me on my 2014 impala and have been wondering about these extended warranties, so......great timing on this. I look forward to the future video with more information . Thank you for doing these videos.
Best one yet you call the warranty company and you get the message " this number is no longer in service😮😮😮
Preach it! 100% Due to the phone calls or the onsite inspections I just have got to a point I don’t mess with them anymore. Some pay decent and quick but the good doesn’t out weight the bad so I just don’t mess with them anymore.
All valid points, you hit the nail on the head about warranty companies, I truly believe that they all suck! They will find a way to not cover whatever you are trying to warranty based on the situation! Air conditioner is a perfect example of ancillary parts they will not cover! Just save the money you pay them in a savings account and then when you need a repair you will have thousands saved up!
Another outstanding video guys! From the 0-60 at the start to the accidental cut in the middle 😂
Where i used to work, we pretty much declined to deal with the warranty companies. As you stated, we would spend hours on the phone to find out what WASN'T going to be covered. That time was never charged to the customer who was now upset that they thousands they spent was worthless.
Our policy became, "we will notify them of what repairs are needed and give the estimate. It's up to you to fight for reimbursement. "
One local transmission repair shop in my area has dealt with Car shield, found out they were a pain in the ass to deal with and cussed out the person on the phone. C.A.R.S. is another one that is a pain in the ass to deal with and they supply the parts for the repairs if covered.Car shield has been fined 10 million by the FTC recently,misleading ads
Wish this garage was close to me, this is one of the honest mechanics left
Good video. Shared with everybody I know.
Good information to pass along! It’s sad some folks do not realize those places end up costing you more in the long run vs just paying for the repairs yourself.
We have a special labor rate for extended warranties because of the extra time and money it costs the shop.
I bought a car from Car Max in 2012 and bought the extended warranty . I only had to use it one time and the service manager at the Pontiac dealer said that was the quickest and best response to an extended warranty he had seen.
Some companies have a private motto of “Do whatever you can do to not pay the claim.” Funny how customers still fall for their lies and sign up.
A very educational video!Thank you for posting this !
Warranty companies are like car insurance and health insurance companies. They look for ways they can get out of paying.
Scam industry
Looking forward to the next video.
My extended warranty is in the form of a tool box in the back of my truck and some industrious and generous you tubers! One rainy night when we were pulling a 36' horse trailer back from a horse show in Louisville KY, my extended warranty was me repairing a broken copper brake line by wrapping a wad of dental floss around the broken tube that was now the new flare that busted. Crammed the tube into the fitting, cranked the nut down tight as I could without stripping it, bled all the brake calipers and drove on home about 300 miles or so.
Carmax gets it. Has an effect on their vehicle sales too.
This is the same in the appliance industry. I get paid a percentage per job and the manufacturer we deal with covers 90 days after a repair and if something happens that's not even related to the original problem we don't get paid extra. So we have to guess what could possibly happen to an appliance and order common fail parts to get passed the warranty period. Plus the 2x labor jobs they reduced to 1.5x labor.
I worked for CarMax years ago, they have several options and they are all quite good , my C class needed a transmission and I paid the deductible of 500 bucks no stories no hassle .
Flip side the "Cars" warranty that we will no longer deal with at my present shop, is a nightmare for customers.
Car shield told my customer they wouldn't warranty anything rubber on the car. Needed an A/C discharge hose
2 years ago my 2017 Pathfinder had a trany go at 68k miles. It was serviced at the dealer & I had Nissan Security Plus extended warranty. They replaced the trany ( $5500 ) & paid my rental for a week, $100 deductable.. was very pleased.. 9 years ago I had a trany go at 63k miles Ford Exployer. I had Ford ext warranty & Ford refused to pay because I didnt have trany serviced at 60k miles.. I owned over a dozen Fords over 30 years & will never buy another Ford, ever!
We used to call it F.O.R.D ' Found On Road Dead' A BMW Z4 had a sticker on the transmission stating that the transmission fluid was a lifetime fluid...I assumed that BMW meant the lifetime of the warranty.
I've got hondacare extended warranty, commercial. I'm a mailman and beat the crap out of vehicles. Front end is just destroyed, and the dealer keeps telling me everything is fine, nothings loose or worn. Right, literally sounds like a car with 500,000 miles and the original front end components. Trying a different dealer next week.
Funny enough, what you’re describing is what we deal with in medicine, wasting time working with insurers rather than actually treating patients.
Also one important thing you didn’t mention - maximum coverage amount per incident. I remember recently people getting 3rd party extended warranties on their Porsche 991.1 GT3s. Those had 10 year unlimited mile powertrain warranties largely due to an oiling issue Porsche discovered, which began to expire recently. Well, these warranties did cover the engine replacement, about a $90,000 job, but the maximum payouts per event was around $12,000. The warranty itself was about $4,000 for 3 years.
It's not just cars. My wife is a dermatologist. Insurances companies don't want to pay for the meds she Rx's to her patients. She has to spend hours per week writing to them to explain why this more expensive 10 year old drug is needed over the 40 year old drug that they already tried that didn't work. Forget about getting them to pay for all the new drugs you see advertised on TV. Sometimes she is able to get samples and the new drugs are really amazing compared to the old stuff.
If someone comes in with 10 legions insurance will only pay for 3 to be removed at time. She has to keep bringing them back or work for free. She has done both. On the other side of it patients get mad and refuse to pay the copays. They blame the docs for the insurance company not covering their issue. She draws the line at not getting paid. She unfortunately will fire patients. It sucks all the way around.
On the flip side of that you have hospitals charging themselves rent for a clinic building that they end up passing to the customer as a "clinic fee" (I just dealt with that - sleep lab run by the hospital charges themselves rent and then the hospital charged me $300 just for the privilege of walking in the door for a 30 minute consult with the nurse practitioner (not even a full doctor) to tell me I'm doing great come back next year. Customers get screwed coming and going.
@@douglasphillips1203 Unfortunately medicine is going that way using mid levels. They pay less if a mid level sees you vs a doc. Hospitals and private docs are not the same thing. I get what you are stating though. Docs are just like any small business but there is insurance involved. Many docs are going cash only. It's going to be a thing in the future. People with crappy insurance are going to see mid levels or docs with not the best training. Medicare and insurance are driving this sinking ship. The insurance companies follow medicare rules. Many people don't know that. Every year medicare makes it harder and harder for docs to practice.
Car shield They suck And I'll say they suck!
I knew right away this video was about Carshield. They can rot in hell.
And the actors that are promoting Car Shield are a bunch of A holes for pushing this garbage on the most vulnerable ,, Car Shield could suck on these Nutz ,,,,
Most car warranties suck, period!
*Customer -* There's a dead fly on my front grill
_Shop_ - We can sort that out under warranty
*Customer -* My car has only done 8,000 miles and the transmission is toast
_Shop_ - The £1,000+ a year warranty you're paying for, won't cover it, because manufacturer said it's driver error!
A little unrelated- American Home Shield also absolutely sucks for home warranty. My in-laws were without A/C for a month in July/August in Texas (100°+ everyday) because of this type of stuff. FTC needs to step in.
Take the monthly premium and set it aside in a money market account and self insure.
These warranty companies have 3 pages of big print that detail what the cover. Then there are 35 pages of small,print detailing why they don’t cover the parts in the first 3 pages.
Car shield is an obstacle between your car and it being operational
Very informative as usual, thank you sir
I have not seen any warranty companies pay for repairs supposedly covered. They always find a loophole.
The industry need to say this out loud and let consumers know.
Great video. Extended warranty companies' lack of accountability and responsibility needs to be exposed. As a shop owner, they are a thorn in our business operations. I do vouch for Carmax warranty. They have been decent for us for many years. Thanks for the Post!!
One thing that you need to remember about insurance companies is that need to take in a lot more money than they pay out to stay in business. I know someone who sold insurance for over 60 years, and he told me that auto insurance companies (liability- collision) set their rates, so they take in twice what they pay out.
I once had a Route 66 warranty I purchased from my credit union at time of financing a used car. Zero deductible, and bumper to bumper for a surprisingly reasonable price. Transmission went out, and they paid for everything except the fluid. I also had them fix a couple accessory and aux switches and stuff on separate occasions. My mechanic commented on how easy it was to deal with the warranty company and how they were surprised by what was covered. This was 15 years ago though.
I've been an automotive tech for 23 years ASE also, unfortunately having a stroke in 2015 has taken me out and it's locked up part of my brain, that's the most important part I needed, watching your videos has helped me so much you wouldn't believe. Keep it up. Any suggestions on a decent scanner with oscilloscope,?
I have a desk chair bought at Stap###s. I bought the warranty. The warranty covers seams splitting open . My chair has a seam split on the seat part. I filed a claim and was denied. They said it doesn't affect the use of the chair.
It reminds me I had a customer who I just bought a used Cadillac with a 4.1 it had 77,000 plus miles on it when he bought it and a little over 78 000 the camshaft went flat (Cadillac was notorious for that with the distributor gear also) the warranty company wanted to see his records on oil changes he barely has a thousand miles on this vehicle they refuse to pay for it because they told him he did not maintain it properly he bought it used and got the warranty from them!!
Once lawyers are involved, it's a scam
The FTC has fined CarShield $10 million for deceptive trade practices, specifically false advertising. It couldn't have happened to a better warranty company.💣
Larry in Draper, Utah
I haven't heard any mechanic say anything good about carshield.
start a personal account and add to it what you would pay to them but you have near immediate access and causes way less headaches!
That's a great idea, I am going to do that.
Set that money you would have sent to a warranty company into a separate bank account and when your car needs repairs "it's covered". You get to decide, not some company.
Route 66 has been good to me. I also think it takes special person to think they can pay a company monthly to never need to pay for repairs. Just pay that money into a saving and if your car doesn’t brake the money is all yours.
Amen Sherwood..
Geico has the best and cheapest, but must add to brand new vehicle. $250 deductible and covers everything. Plus they told me to take to dealer to get fixed, no questions asked. 7 year 75,000 mile warranty. I overheated at 74,000 miles to get brand new motor.
Same issues in UK. Whats not covered... EVERYTHING by the time theyve done their wriggling. We refuse to deal with them and still get to do most of the jobs anyway.
I owned my Ram truck just under 3 years when I reached out to Zeigler to get a MOPAR Max Care warranty. They gave me a nice discount on the price for a one time payment. 2 years later I needed a heater core replacement and the dealership had no problems getting it approved. The dealership service manager also said Route 66 was a good warranty.
It was so frustrating for me as a technician to have to spend time to diagnose it, only to have to drop EVERYTHING I'm doing for an adjuster who never shows up in the time window allotted, pull whatever I'm working on out, and pull it back in AGAIN. Things like these make people stop being techs. I'd still be doing it if I had gotten compensated for all the non-repair unpaid hours.
Great summary of extended warranty, thx. Would it be possible for you to do a video on the best all-time 4x4 non-diesel truck (after year 2000) that is the easiest and lowest cost to maintain that you ever came across - leaving purchase price out of the equation? Maybe you can do the top 3 or something like that. I know you did a similar video based on a certain $ being spent to purchase but would the answers be the same if money was of no concern? Seems like many of the newer truck are problematic. Manufacturers seems to be building them to fail and cost the customers thousands to maintain. Not only list the top 3 but also state the reasons why they are your top 3. Can do the same for SUV’s and Cars. Thanks for the great content, love watching you and your Dad post these, great job.
Glad I got a great shop in walking distance.
😂 Car Shield= junk!!😅
Car shield sucks buys cheapest parts and puts in customers cars then the car returns with same issues
The home warranty companies do the same thing. They won't cover anything for replacement unless you get all items yearly services and have records. That includes appliances, etc. They will not let you know exceptions or requirements to get service prior to buying the coverage.
Can only discuss company I have: 1) Credit Unions are USUALLY more caring towards members than banks. 2) A number of Credit Unions use a company named "Rt 66 Warranty", in dealing with them since I bought the warranty with my car their customer service has seemed to be great
2) currently have issue with Transmission, was told "If needs replacing with cover 100% cost of used transmission PLUS labor, NO deductible"
3) MOST extended seem to NOT cover ANYTHING electrical OR what they consider "maintenance" ie, Rotors.
American Auto Shield AKA CarShield SUCKS BALLS. Care Gard is one of the best. (Shop Owner)
That is true,,,warranty from outside company wants to collect money and then when it's time for them to pay...they have so many alibis.
Awesome info
The warranty isnt worth the paper its written on. I had a company decline a wheel bearing because the client couldnt provide oil change records since they bought the car..
Also people don’t understand and read what they are signing. There are cap amounts, deductibles and % paid. In many cases taking one of these warranties are sold as “part of approving financing”
From a shops perspective these companies are a pain to deal with.
They want to send their own people to check out the job, send you the parts and then pay you nothing.
I have no experience with extended warranties for cars but I have had good luck with one for my motorcycle. It’s called Autrella Extended Service Agreement. Covered a fork seal leak, which the dealer and others didn’t expect them to cover, no screwing around and paid my dealer instantly. On my Ducati with semi-active electronic suspension, the bill totaled $1200. Would be worth exploring if this firm does extended warranties for cars.
Former Shop Manager here - an Ex Boss (Who I have a ton of respect for) Came to the conclusion to NOT deal with with Extended Warranties, We would do the repairs, and get pay ment from customer and THE Customer would have to get re-imbursement from Extended Warranty. That put the responsibility on the Owners. (Not us).
My brother has a Dodge 1500 and the coolant flush is required at 100,000 miles! He purchased his truck with a "Warranty for Life" and he got the dealership to replace his engine because of a ticking issue. His truck had less than 100,000 miles Yes the warrenity will fight you tooth and nail!!
Good luck!!
Those companies all suck. They wont cover anything but theyre more than happy to take the customers money. Those companies love screwing shops and technicians. Ive dealt with a few of them. They need to be put out of business. Absolutely criminal.
One thing I've always noticed about my family members that purchase these extended warranties when they buy cars at dealers is that nine times out of ten they spend way more than they pay out. Crazy money, like four thousand dollars for a warranty like the cost of a engine or transmission replacement... Then they're financing these and paying interest, absolutely stupid product to buy.
Some shops won't deal with certain aftermarket companies.its not worth it sometimes.they only warranty that's any good is a factory esp.just document all maintinence.
Super helpful video. The car industry has gotten grimey
I have one from a Nissan dealer that i got for my Taurus, and they've covered everything that should be covered. Around $4000 for the warranty, and they've paid out almost $7000 No complaints so far by Assurant
Had a dealership replace a lot of parts and never did fix my problem. Save the money and get a "GOOD" shop that takes care of the customer. My shop gives me a great deal/service
They are useful tools to lower cost of purchase. Bargain with dealer, take most expensive warranty in exchange for lower purchase price. Then, go home, cancel warranty directly with company, save even more. I've done this with a buy here, pay here place.
I had an engine cam shaft delamination causing a noise. the warranty company wanted me to save the old oil for re-use.
save your money for when things go wrong as most part are or wont be covered worked in car sales early 1970 s and the parts on warranty never failed every thing else did
In many states, automotive extended warranties are considered insurance policies and are subject to strict laws that are enforced by the insurance regulators of the state in which they were sold. While you it is not practical to file a complaint while your vehicle is tied up needing the repairs completed, you can definitely file a claim for damages with the state insurance regulator to seek reimbursement. In many states, you can file this under the Deceptive Trade Practices Act, which awards triple damages. These companies do not like having complaint letters in their files and filing a complaint will usually get you a response from someone upper level that you may be able to get results from. I did this successfully with State Farm in Texas and was able to get reimbursed for an engine replacement. I am a retired automotive service professional with 38 years of service.
Had a 700 mile challenger with a scored cam bearings and stellantis wouldn't cover it because there were no oil change records. Car was only 8 months old
The phone calls and the expensive tear downs that customers often have to pay for. I've heard so many stories, I wouldn't even try dealing with them. I can almost see a class action lurking...
I had one through Century and they came through for me.
Way back in the early 2000s a friend bought a 94 Z24 that came with a "Wynns product warranty" where aparently they treated all the fluids with Wynns products etc... Well the engine packed it in and Wynns had a new crate engine put in the car with no questions asked... I really didnt think he had any leverage but that company kept up the warranty he paid for.
Very educational! Public awareness! Oh I got ext warranty it's cover! Bend over and grab your ankles and don't look behind you 😢! And days go by waiting for approval to get repairs done! Your in good hands till you need it! Lol, and the nite mares of fiat,kia engine's and getting replacement parts! Hell will freeze over!
I have to add this I have always told people customers included that if you have an extended warranty you will have to deal with the company and collect from them end of story
Important to mention that factory extended warranties are a different story.
Yes, they are. In fact, when people mention buying an extended warranty, I tell them to buy one through the manufacturer. The vehicle manufacturer has more ways to make money than just selling you a warranty.
ALL insurance companies are the same way. Homeowners, health and auto all look to pay out as little as possible.
I think he’s scared they're going to send Ice Cube and Captain America after him
Ice T
@@JackMeyHoffer562 Mr. T
@@garryr Ice-T is not Mr. T. Two different guys.
My friend bought one against my advice. 5 months later the stealership hit him with $3k in repaira. His aftermarket warranty covered all but $300. 2015 silverado 94k. Lower control arms, ball joints, brake booster. Parts prices and labor were outrageous; $700 per arm and $200+/hr.
The technician said he could not believe the warranty was going to cover it because most would not.
However, i think he has still paid more in then he has gotten out. Like all insurance.
Put the warranty premiums into a savings account every month, and pay for your own repairs. You'll come out better.
I bought an extended warranty from a Ford dealer thinking it was from Ford. It wasn’t. At 50k and two years of ownership the air conditioner died. They said it wasn’t the actual air conditioner but the pulley assembly that wasn’t covered. Then years later I was pressured by the “business manger” to purchase an extended warranty on a new Subaru Forester. I said maybe, but then learned he was selling a third party warranty and I said no thanks. 40 minutes of high pressure BS. He said Subaru’s warranty was third party. BS! Then said if I didn’t buy it then I wouldn’t be able to purchase later. More BS. I did buy it a couple of months before the 36 months was up on the factory warranty and bought it on-line direct from Subaru. I have purchased these on occasion and have used them but the repair has never equaled the premium.
Aftermarket car warranty insurance is like homeowner insurance You're paying for the piece of mind while you're paying until you make it claim
I'm a one man shop and stopped dealing with them 15 years ago, it's a ponzi scheme.
I tell them to take it to an aurthorize dealer. You have to tell the customer you're going to spend extra money.
The answer is a big :
Y E S 😊
I use the vehicle "make" warranty. i.e. FoMoCo and then just use the dealer for repairs. The key is I DO NOT buy it when I buy the car. I buy it from another dealer that makes a small profit selling warranty. Kinda like buying a part at a dealer unassociated with the dealer that sold me the car. i.e. The dealer selling me the car wanted $10k for 150k warranty. I went across town and got the same warranty from another dealer for $2600. Same warranty.