EXTENDED CAR WARRANTY- TOP 5 QUESTIONS in 2024 (Service Contract, Prepaid Auto Maintenance) THG
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- Опубліковано 13 лис 2020
- CAR BUYERS MUST ANSWER 5 CRITICAL QUESTIONS before you buy a SERVICE PLAN or an EXTENDED WARRANTY FOR YOUR CAR.
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I had an F&I manager pushing an extended warranty on a car purchase. I told him maybe I shouldn’t buy this car. He quickly moved on.
Exactly. I’d be like, are you saying this car isn’t a good buy? Maybe I should go home and look at different makes. ;)
@@asaleemeadows Bingo! 🎯
Worked at Toyota, Nissan, and Chevrolet. Seen issues with all of them. It's insurance just like anything else. You may use it or may never use it. Not saying you should or shouldn't buy one but I'm glad someone is giving people the proper information on what to look for when purchasing a warranty. Also not sure he mentioned this but your extended warranty is refundable for the time and miles not used. So if you decided to trade or sell you vehicle or just cancel you warranty you can be refunded a portion back.
True for most policies BUT be sure to read the fine print or ask a knowledgable finance guy/gal as some will only apply unused portions to a NEW policy. Others will refund your unused portion MINUS claims, which if you have made any will be less than zero. Others will use the rule of 78, which basically means if you get through half the policy your refund is about 22% of the premium (minus claims). I always say, "if you want better answers, ask better questions". :)
I just purchased a car and I wished I saw this video before I purchased my vehicle. The finance manager didn't even asked if we would like an extended warranty. It was figured in on the contract and we signed it not knowing. I signed and initialed on so many paperwork that it was overwhelming I didn't have time to read the fine prints, he glossed through the extended warranty as if it was just a matter of fact. $2,000 for 5 years/100,000 miles. I read online that you could cancel the warranty before 30 days. We talked with the finance manager and he said to wait until your first payment goes through first until you request for a cancellation by emailing the dealers finance department in about 60 days. He said this was necessary because my credit was bad, so this was the only way for them to get me approved???
@@kylej8807 Naw that isn't true. Actually it is illegal. Vehicle Service Contracts are optional products and cannot be forced on a customer. They probably lost there profit to the finance company and making it up by selling you a VSC or the F&I manager wanted the process to be easier for him so he lied. I would first decide if you want to keep the warranty. If not cancel it right away and have them reprint all your paperwork. If they refuse ask to speak to the General Manager. After that go to your Attorney General and complain.
@@scottie1633 Thanks for getting back to me so soon. F&I manager is a old military vet. He helped us get a good rate on our insurance, and a great price on tinted windows and rims. If there is no penalty for cancelling after the 30 days, I'll cancel after the first payment goes through. Once again thank you for the advice.
@Kyle Louie All that paperwork to sign in the business office can be overwhelming which is why crooked business managers can thrive in the office. They will slip in all kinds of products and fees and make it almost impossible for you to spot them. So let me address your questions in the order you asked them. 1- You CAN cancel warranties and products before the 30 day "free look" period ends. if you cancel before 30 days from signing or purchase date, the warranty company would send you or your lender a check for the full value of the policy. But your payment wouldn't change, only your term would shorten. 2- The finance manager 100% absolutely lied to you. This situation is at the forefront of their mind because when a client (you) cancels a policy before 30 days they lose their commission! It is called a 'charge back', and they HATE it. This is why he didn't tell you the warranty was in the financing AND why he didn't tell you that you can change your mind and get 100% of your money back BEFORE 30 days... He wanted you to not notice at all (easy commission, no headaches), or if you did notice hopefully it was after the 30 day free look period because he would get to keep his commission. The worst case is when you notice before 30 days because all you need to do is call up the warranty company and tell them you changed your mind. So in this worst case scenario for this business manager, he had to LIE to you and tell you that a payment had to come out first... WRONG! IRRELEVANT! He just wanted to keep his commission. 3- You don't need to email the finance department to cancel anything before 30 days.... Just call the warranty company direct. (More on this in a bit) 4- Regarding your credit, banks will NEVER say you need a warranty with the loan or you wont get approved. 100% false. Why? Because this is called TIED SELLING and is illegal in every state and all of Canada also. Google it. Tied selling is also very well known by the business manager and the general Manager, as well as when you sell a policy to a customer (you) in the business office the client needs to leave the office with a SIGNED COPY of the policy. My guess you didn't leave with a signed policy. In some cases the business manager even forges your signature on documents after you leave the store! So here is my advice to you. 1- Search for your signed by you policy that you left the store with in your new car. If you weren't given one at signing, check the copy they most likely provided you, after the fact, for your authentic signature! 2- Call up the general manager of the dealership directly, heck call the owner of the store if he happens to hang out there! Let them know you were deceived in the business office into unknowingly purchasing a product, AND that you were lied to about the cancellation of the policy when you did find it and called in to your business manager. Also let them know you did not get a copy of the policy you were 'sold' on delivery day. On top of that , state you know tied selling is an illegal practice and that NO banks require you to have a warranty to be approved (that is the very definition of tied selling!). Lastly you will need to play a bit of hard ball and let the general Manager know that if they don't give you a check for the full value of the policy including tax TODAY, you will contact 1) your state/province auto dealer licensing association and 2) the Better Business Bureau and 3) the warranty company and let them all know about their fraudulent practices. Seriously, not only can they be fined more than the price of the policy, if they do not try to rectify the issue they could also have their license to retail cars pulled. This is a BIG deal in the industry. Sorry for the long reply. People say I talk too much!! I do like warranties, but you need to be given choices in coverage and deductibles and term etc in the business office so you are getting what serves YOU not the business managers pocket book... But happy to answer any questions if you still have any. Line up your ducks, prepare for the call and MAKE THE CALL! You can (most likely) get your money back.
Very good points. I recently bought a used car (Nissan) and an extended service contract with it. The ESC was only $200 and the dealer paid and additional $150 to the ESC company. I bought the "3 star" coverage which covered a few extra things. Shortly after I bought the car, the transmission went out. I went deep diving in to the contract and it says I pay up front and they reimburse me, but when I talked to them, they said they pay the shop and I pay the difference between the total and what they cover. Their limit on transmission repair/replace is $2000, and my current quote from the shop is about $4k. The thing with these companies, is they will try to get out of covering things ANY way they can. The ESC company wanted to talk to me before they talked to the shop and asked me things like- "Did you buy the ESC when you bought the car or sometime after? Did you test drive the car? Did you notice any issues during the test drive?". They finally talked with the shop and told them told to disassemble the transmission to find the point of failure, and the ESC would send an "inspector" to look at it and take pictures etc. The shop and I both think that is ridiculous. The shop just called me an hour ago to tell me the "inspector" just left and it going to write his report and send it to the ESC company.
When I bought my 2013 Honda CR-V from a dealer, the F&I guy tried to sell me HondaCare for $3,500. I refused and he came down to $2,500 and I refused again, so he dropped the subject. After taking delivery, I bought HondaCare online from a dealer in another state for $1,100. It still didn’t pay, however. By the time the warranty ended I’d probably only gotten about $700 worth of repairs out of it.
When they start with the warranty I usually start saying are u worried that I'm not buying a quality car 😂
I had a Honda Care warranty on a used Certified 2010 Pilot. It paid for itself at least 2x over.
My fusion's warranty paid for itself. Was a certified pre-owned. Got the warranty and it paid for a bunch of stuff that broke.
Kevin you have done a great job. Thanks
Kudos to Kevin and The Team! Thanks for your hard work and sharing your knowledge!
0:22 "Super High Intensity Training" or S.H.I.T
Kevin Kevin thanks you so much this what you doing is excellent , and knowledge is power 👍👍👍👍
Glad you think so! We do our best!
Kevin, Thanks from all of us, on your informative videos...
Great information THG. I used to own a diesel truck and bought a better warranty just in case the engine needed to be worked on. To get at the engine, and other parts, the cab had to be removed. Say what you will about it being a new truck, etc., but the bigger trucks do have weird issues from time to time. I blame it on the govt's emission regulations.
I agree with Dave Ramsey. We are setting aside money for car repairs, and we're not even in the market for another car yet. Can't wait to turn down extended warranty when we do go car shopping.
There you go... smart man! Savvy Car Buyers don't need extended warranties.
Excellent info Kevin, thank you 🙏
The BMW warranty was well worth it! Just act like you don’t want it and let the finance guy offer a very low price. He’ll keep going down the more disinterested you are 😎
As always, excellent video; thanks very much for what you do. Tip #5 in particular is very helpful. I would also add to this how many miles a year one intends to drive. For example, my wife puts maybe 2000-2500 miles a year on her vehicle. When we purchased it, there was still one year remaining on the factory warranty. Based on her vehicle usage and the low miles the vehicle had at the time of purchase, an extended warranty would have been a waste of money. Of course, that didn't stop the finance person from trying his best to push the extended warranty on us, but to no avail. Should the need for a costly repair arise, that's what what I call the emergency slush fund put aside for such emergencies is for.
You may put low miles on your vehicle, but warranties are also time based, so it could still be of use.
Thanks for your straightforward approach
As always excellent information
Thanks Kevin
When I bought my most recent vehicle from a "everyone pays one price" dealership," I was told that any factory extended warranty could be had for 20% off the list price. But the F&I person then offered an additional $500 off the premium warranty if I bought it with the car. That shows how much of a markup there is. I was tempted but turned it down. I had owned two other vehicles from this manufacturer and neither needed extensive repairs during the maximum period covered by an extended warranty (7 years, 100,000 miles).
Thank you great information
I only take the tire and wheel coverage. Living in NYC “pothole city” especially in the winter has saved me. 2 winters ago I busted 2 tires in 2 weeks. And if you hit one of those monsters on the highway your wheel is toast. The tire coverage alone has paid for itself.
Actually you should trun that down to because places like Discount tire or Belle Tire or waht ever you have there in new york you can walk in there and buy there warranty for far less and its better. And that will include free balancing and rotation.
I t depends on the vehicle and other conditions. I have made money (expenses greater than premium) on a couple of my cars. One example was a 1994 Corvette with20 k miles. 5 year policy. Although it was low mileage and under 36k miles (1998) , it was apparently dragged a lot. After 30 k miles, the rear diff went , the driveline went, The CV joints were replaced and a bunch of other warrantied stuff broke. Total repair expenses about $13K over the ownership of the car, my premium cost #3.7K
Another car -My purchased new 2011 Traverse had leaky engine gaskets at 84K miles ( actually caulking like stuff) that required replacement under warranty -the whole engine had to be pulled and resealed (about $4K). I paid about $3k for the warranty. One secret is to buy original OEM extended warrantees. They are the easiest to claim against, especially when the dealer service dept. handles the claim
I live in Florida, where the extended warranties are regulated by the State, ie no discount. As a result, I have always purchased my extended warranties from dealers in other States, saving thousands.
I don't mind sharing these tips since I am at the end of my car buying days. I'm an old geezer. Good luck.
Thanks man!!
Thanks for this valuable information
Great information! You now have a new subscriber.
My insurance company sells a mechanical breakdown warranty that covers all repairs need except for wear and maintenance items for a very small monthly amount. That is available until the new car I purchased is covered with the renewed coverage for 7 years/100,00 miles whichever comes first. Then no more charges and the only take is a $200 deductible for all covered repairs which is equal to the warranty that they tried to sell me.
My truck is 10 years old and I still have warranty companies trying to get me by their warranties. I just treat them as scam calls.
They are scam calls....tell em you got a 80 model and they hang up.
@@bigbenisdaman I just tell them I have a Model T Ford....they hang up on me.
I tell them I own a Rolls Royce not a Honda.
Thanks for the important information! 👍🏾😎🙏🏾
Hahaha I love this guy. Totally wise and not with any BS.
0:22 "Super High Intensity Training" or S.H.I.T
Thank you! #TheHomeworkGuy
Could you please discuss the pros & cons of leasing versus buying, sometime? Thanks a lot.
Thx for this education! 😁
Thanks for the video. Three years ago I fell for the F&I speech and bought a $1,600 extended warranty that never touched as the CR-V never broke down. Now that it expired I get daily calls (some times even twice daily) to renew it! Thanks but no thanks. Fool me once...
Thanks to your videos I'll be better educated next time around.
You may qualify for a portion, if not all of the purchase price back if you didn't make any claims. I would review the policy or ask the issuing dealership finance office ( or just call the number on the policy, they will give you the no BS assessment!). Lastly they may also offer the policy price as a discount to a new policy on your car. This could be beneficial depending on how long you plan to keep it and how many miles it has on it. :)
I get daily calls about my extended warranty and I haven’t owned a car in the US 6 years.
Great Information.
Had a toyota salesman tell me i needed to buy extended warranty on a prius because it “had more software than the space shuttle”. I’m in the software biz so i just laughed. Unlikely a software bug would cause a serious problem covered by a warrenty. I knew i could buy the warranty later if i decided i needed to. Forgot all about it. Fifteen years later, had no problems with the car that would cause me to use a warranty. In the market for a replacement. Cars ARE more complicated and expensive to repair so i would consider it. But i wouldn’t buy it as part of the car sale. I can buy it afterwards (if ever) once i have read through the policy. Warranties are like insurance policies. Makes you feel better until you have to make a claim. Then they do everything they can to NOT pay. Good advice in this video. I did not know that one can haggle for a better price. Thank you, #TheHomeworkGuy
Thank you
Thank you so much. Your help is greatly appreciated. God bless you my dear. 😌🙏🏽
You are so welcome. Thanks for your kind comments!
Thank you! You have helped even after purchasing a vehicle I have had them do my contract over and remove items not wanted.
Glad I could help!
thanks for info
I went to a dealership a few days ago and they tried adding some bs “certification fee” for $3000. When I asked the finance guy why that was on there, he didn’t really explain it well and said customers have to pay it. I think it’s an unnecessary fee.
did you pay it?
I feel so fooled right now. I only found you after my purchase
Hey Kevin I love all your videos I feel like I'm going to college for a degree on buying an automobile I've been looking for a truck for some time now and this information has been very helpful what about these warranties like car shield are those any good. ?
Sorry for my English. Kevin, I strongly believe that you're going to create a whole Union of Honest Dealerships and that will wipe out all other scamming dealers. I'm not sure how long it's going to take. but that's the future for sure. Please keep up the good work!
I promise you this Kevin is honest like you an me.
Either he wax working as a f&i and Ed fired or he owns bunch of gas station. With repairs shop that heat customer with cars that have extended warranty...in my dealer even a service technician buys extended warranty...it could be very expensive to repair some parts..
Second vid in 5 minutes. Thank you for the information and a new Sub from me.
Awesome, thank you!
Is air suspensions typically covered? I’m buying a bmw 750i and I’m interested in endurance
#thehomeworkguy Thanks for the tips.
Mr. Hunter u r very informative .Jeff in mass
I bought a TWS Warranty I hope that things work out in my favor.
Good information 😊
With inflation it’s a great idea to lock in labor rates up front. Just make sure you are offered a names exclusion not named inclusion warranty
Tomorrow, I'll visit a couple of dealers in my area to get a car. I'll let you guys how it goes (I'm applying Kevin's tips)
LUCK is an acronym,! Labour Under Correct Knowledge. Go in prepared any you will do great. Should they try to force your hand then simply walk. They will call you back the next day much more reasonable, if you haven't bought somewhere else more reasonable already! ;)
You lied.
It's been a month lol. I got a CIVIC 2020. I know, it's a new car... I got 1000 discount and the only "fees" I paid were $199. I didn't pay for any of the finance guy bullshit. I know, it could've been better but in the past, without this knowledge I have now, I would've paid thousands in stupid shit.
Unfortunately, I bought a new Honda from a dealer in Wesley Chapel, Florida. They added a Platinum vehicle service contract even though I said I didn't want it. It was disguised. Stupid me did not check carefully. I had it removed and the money (over $2200) credited to my account. They didn't even bother to give me any information on the warranty...they just put "VSC" in the contract. They also packed stuff in I didn't want and had no idea how much those items cost. They are now being investigated by the Florida Attorney General.
Asc
Routine 66
CarMax
Echo Park
Century Warranty are the best I have dealt with.
Carshield
Protect My Car
Are the two worst ones
Always do a prepurchase inspection
Every time a car dealer tries to sell me an extended warranty. I ask them. "Are you saying I should expect a lot of repairs with this car? Then maybe I should buy a Toyota." It does not stop the sales pitch. But, it puts them on the defense.
If you buy a Honda or Toyota, you will not need an extended warranty.
Every dealership has a service department for a reason.
You can't service electronics
Hondas aren’t like they used to be. My civic has had issues with power steering pump and transmission
On a Honda you WILL NEED A WARRANTY..
I had a Toyota Camry and needed lots of warranty work. I’m glad that I purchased the extended warranty through Toyota.
The car Shield best packaged I meant packet coverage is $100 deductible and $92 a month I negotiated the monthly payment what do you think about the coverage I got the covers everything and in the motor and in the and all the electrical parts and labor tell me what you think
I just purchased a car and I wished I saw this video before I purchased my vehicle. The finance manager didn't even asked if we would like an extended warranty. It was figured in on the contract and we signed it not knowing. I signed and initialed on so many paperwork that it was overwhelming I didn't have time to read the fine prints, he glossed through the extended warranty as if it was just a matter of fact. $2,000 for 5 years/100,000 miles. I read online that you could cancel the warranty before 30 days. We talked with the finance manager and he said to wait until your first payment goes through first until you request for a cancellation by emailing the dealers finance department in about 60 days. He said this was necessary because my credit was bad, so this was the only way for them to get me approved???
Hi Kevin, great advice. What type of drivers statistically BUY and USE the extended warranty? I would imagine those drivers that drive a lot, in the city and put a lot of wear and tear on the vehicle. So, I feel there is a question that you should include in your list. How often, where, and how much do you drive the car? (Ok those are 3 questions). If you plan on driving your car 25,000 miles every year and you do a lot of city driving, that can be a big wear and tear on the car. However, if you plan on driving only 5,000 miles a year, locally, and in the country side for just going to grocery store, I would not buy the extended coverage. It would be highly interesting and helpful in knowing what type of driver (driver profile) buys and uses the extended warranty.
A driver who buys warranty most likely feels that the price for the policy is less than the repairs would cost over that time and milage. Policies cost more when you cover more milage and time, but the price is negotiable. Drivers who use extended warranty are those who have one when their car breaks down. ;)
I've known many cleints who hit the jackpot when they have a no claim limit policy and thier engine blows up. Barring that, it's make, model, term, milage and for what price. On a more reliable car the price should be MUCH lower than on an unreliable car.
When I’m asked to buy an extended warranty I reply, “One of the reasons I’m buying this car is because of it’s excellent reliability. No thank you.” Because we live in Las Vegas I often add, “I’ll roll the dice.”
Thanks for this information on extended maintenance watch out for items. Also along with Finance trying to sell extended maintenance plans, do you have a video on what to watch out for on "Gap Insurance" they also like to sell us???? Are they worth even getting????
Can I just say I do not want to have Gap Insurance???? Ah, I just found your GAP insurance video, what it is, and I definitely don't need GAP insurance, another great video.
Have not gotten into the buying of a vehicle (maybe this spring 2023), but I know if I end up going into talk to some finance person, they are going to throw all kinds of Fees, options, maintenance, and insurance plans to add to the contract in front of me. I hope I have done my homework before entering the Lions Den of Finance where "we need more of your money".
What would most of them do if I walk into finance and flat out say, I don't want/need any of these things right off the bat. I just want to pay for the Total OTD price I accepted for the car, The license, sales tax, and other few non negotiable items. I will see how much their DOC fees are if really expensive if they can reduce that price (I guess 78-99 dollars is an acceptable price from other video.
Still learning. Thank you for the video.
what is even worse is you pay interest on this warranty purchase... you pay for all of the years upfront...
How do we know the "actual cost" of a warranty? Sorry , I missed that.
That's a tough one. The best thing is to do is call around in advance, @1 to the dealer you most likely will purchase from, 2# to other dealers. Make sure it is the same brand and coverage. You will get many varied prices and you can use that info to better negotiate when you are in the business office.
What about buying an extended warranty on a used car? I have a car that the transmission went out. It had an extended warranty for a year and they are paying to replace it. However, it's about to run out, and I want another warranty. Do you recommend for a used vehicle? Any recommendations on a company?
Kevin my family has purchased a total of 12 cars from Car Max all with their extended warranty and have had great luck with the quality of the vehicles and if there was a problem the warranty took care of what ever it was. I'm very careful about buy these warranties most of the time we opt out but with Car Max we bought the warranty because of the way my family was taken of. I find your videos very informative so thank you. # The Homework Guy.
We had luck with this too. It paid for itself on our 2004 highlander we bought in 2013. And we traded that in this year for a 2015 tundra. It only cost $2000 for the EW and that was the value of our trade in highlander
I made the mistake of buying an extended warranty and a service package, luckily I haven’t had to use any of the warranty but I lost six oil changes because there are two limiting factors one is total mileage and the other is a time factor which was three years if you follow the recommended oil changes you’ll never use all of your oil changes so the money I spent was not only a waste I didn’t even receive all the oil changes. Never again
Yikes. Tell them you want your money back on that product...... You may yet need the warranty though!
I don't quite understand when he said to pay no more than $300 over for the price of the maintenance warranty
#thehomeworkguy the title mentions prepaid maintenance or service contracts, I was thinking ToyotaCare or something similar but that wasn’t addressed. I think the title should be updated to just extended warranty.
$21/wk covered for 5 years/100k miles. Everything except brake pads and bulbs. New OEM parts, and it’s accepted at any repair shop in the US or Canada. GAP (which is a much lower cost than the warranty) is included included in that. Toyota Camry. Bad ECM cost $0, bad ac condensor cost $0.
Unless you keep $3-4k set aside for vehicle repairs, it’s worth the price of a lunch combo per week for coverage. That’s too easy.
It is interesting that you shared all those coverage details without ever sharing the name of the warranty. Was that by design or just an oversight?
@@KevinHunter assurant was the name of the company. I did my homework after I had a credit union warranty that would only use refurbished parts and didn’t cover everything like they try to make you believe.
You could’ve asked, but you try to be a smartss because you aren’t open to the possibility that what you say doesn’t apply to every warranty.
Thoughts on a good extended service plan from a 3rd party on a vehicle that has a rebuilt title as the manufacturer warranty is null. I’ve got an option to purchase +5 year 100k mileage coverage to cover everything in the oem coverage.
Look at line one! It should reflect the sales price of the vehicle you're buying and just agreed upon at the sales office. Don't be surprised that the number is higher where the dealer keeps rebates and incentives that should benefit the buyer, not the seller. Walk out of the finance office and go back to the sales office and thank them for their time. ALWAYS be ready to walk.
In regard to extended warranty information I don’t understand giving an offer over $300 above the extended warranty. Can you explain...how is it a negotiation if you are wanting to pay over $300 what they are asking? We are definitely looking at getting an extended Warranty for our new car. Please help...much thanks, Todd
just bought a kia yesterday… experienced these! told her i’d let her know…
I bought a plan on my current used car. Two months in needed suspension work costing more than the plan. Ends up they covered it so I lucked out. I knew this was a grey area on what the plan covered.
That said, my next car will not have a plan. Enough experience amd better financial planning, along with these videos, have convinced they are not needed in my case.
Liked your video. What do you know about car shield? Thinking of going with them but after some checking not sure. Any advise? Thanks, Wanda Thanks
We're not super sold on ANY aftermarket warranty company. CarShield does has decent ratings for paying expenses on time. Many others do not.
2021 MB GLE - thoughts on the tire/rim warranty ? & the pre paid maintenance package ? thanks ~ JDS/CT
In Australia the extend warnity is a wast money
Thanks Kevin. I bought a brand new 2019 Kia Optima LX in February 2020 and they suckered me into one and also their GAP - my credit Union who I will be refi through - said I need to Cancel both Gap & Extended... how do I go about doing this? Do I have to go back to the dealership and deal with all the financing again? Never bought a new car before - thanks buddy. Appreciate you! #TheHomeworkGuy
I just got a new car and got the same two extended and GAP insurances. Did you need these or you canceled eventually?
@@aigerimsharshenalieva5506 yea I got a bmw and they talked me into gap I’m looking to cancel also…
What do you think about car Shield but they have I negotiated the price from $110 a month to down to $92 a month with $100 deductible from Cars filled with their best coverage Diamond package is it worth keeping for a 2016 Compass sport
I bought extended warranty through Fidelity, I have the highest they offer for $2961. Term 11 years(132 months) or 150,000 miles.
Platinum.
Deductible is $100 if I don’t go to any of the Toyotas that are in the group they’re in. Lol
Buy a Lexus like I did, you won't need an extended warranty. :)))
How are you supposed to know how much the dealer actually paid for the extended warranty? Do they share amount with youbfi you ask??
For manufacturer's warranties, the dealership gets paid by the manufacturer for labor, so the dealers in essence are ensuring they get more work $ for the dealership from the manufacturer.
Thank you so much for getting back to me so quickly. I never miss any maintenance..But even though the car is new I was told that the electrical and computer parts may go and cost a fortune to fix. If you’re not advising the extra coverage I will totally go with what you say but if there is a warranty that covers the extra electrical and computer parts can you be specific as to what that is.. i’m just so confused it sounds like there’s so many different types of warranties.
There are many different levels of warranties, and many different companies. Here's 3 different companies with good reviews (I am not endorsing them). You can contact them directly and discuss your concerns ( You don't have to buy one at the time of sale, nor do you have to get it from the dealership) 1. Endurance 833-561-1676, 2. CarChex 877-350-1136, and 3. CarShield 877-355-2120. If Toyota offers an extended warranty (and if I was going to buy one), I'd buy that over any third party warranty. I hope this helps
@@KevinHunter Thank you !! :)
@@KevinHunter When researching prices of extended car warranties how do you know what dealer offers what warranty? In other words how do I know ABC dealership offers Endurance?
Extended warranties remind me of when I worked at Sears. We were under constant pressure to sell "protection agreements", or PAs, on everything from mowers to tractors, bench power tools and exercise equipment. We were told to present them as "peace of mind" for our customers. But I had an assistant manager once admit to me that the real reason was that they make the store MONEY. Remember that the reason dealerships sell these plans is for one reason; IT MAKES THEM MONEY. If you have concerns about future auto repair costs, I find a good rule of thumb is to budget the same amount you pay for gas in your yearly expenses.
My dad sold washers and dryers and told me to never buy an extended warranty.
I'm fighting buying one on a Q3 2021.
A dealer sold me a extended warranty 3yrs unlimited miles for $6400. I thought sweet! Oh, it is a commercial use warranty because I use my truck as such, in the contract it says that the turbo is covered and if any part of a turbo goes bad the whole turbo need to be replaced! Well they say that it's not covered because it's not internally lubricated by the engine, well a turbo is! I wist I can find a lawyer here in NC to sue for this repair, they're confident that I have no recourse.
Extra warranty is a waste of time to push on me...never have or will for any product.
I want your luck! :)
OMG I wish I saw this video before purchasing my car. The dealer has charged $5000 for 7 years (or 100000 miles) contract and 5 years (or 60000 miles) maintenance for my 2021 mazda cx-9. It seems very high but unfortunately I signed the contract. However I see in the contract that I can cancel it within 30 days and they would refund it. The F&I guy says that I have an APR of 0.9% which is very low given that I recently moved in to US and do not have much credit score, so the only way was to get this service contract done. Please help me on what I should do. If I cancel the USWC contract by email, will my EMIs reduce by itself?
Have you ever considered doing response videos to car sales training videos from guys like Jim Zeigler or Steve Richards?
Yes, actually. We're looking at all of the training videos, and the content does help car buyers understand more of what a salesman is doing... what they are trained to say and do. So, we're going to role play some of that stuff in upcoming videos so you can see it and understand what's going on when it happens to you.
How do you find the actual cost vs asking price?
I’m very hard on my 4 Runner. I bought just in case!!! I would get it. Just my opinion!!!
Buy a warranty it’s worth it
I would appreciate advice on a top-rated private service plan
I work with Endurance, too rated across most all review sites. Great coverage and some additional benefits that you won’t get at a dealership. I come from 12 years as a GSM at a dealership and was tired of the typical dealership cons and went direct to consumer.
When I'm at the dealership looking at vehicles, should I be concerned if the salesman does not come outside to greet me?
Nope. I'd enjoy the opportunity to shop without harassment. There are many dealers who have cut back significantly on staff, so that's what you may be running into. Who would have thought you could visit a dealership and nobody would come talk to you?
I once went to a car lot in the pouring rain to avoid sales people working the lot. Didn’t work. He had better rain hear than me.
Can you offer your guidance. I am buying a new 2022 RAV4. Can you guide me as to buying an extended warranty please if I shld or shouldn’t and what shld be included.. thank you soooo much
So first off, the Toyota RAV4 has great reliability ratings. That's likely to be the reason you're choosing that vehicle. So, what are you worried about? For me, I'd never buy an extended warranty. I'd simply take care of it and maintain it properly.... and then drve it worry-free for 300,000 miles!
What do you think of Buick? I love the Encore but getting mixed answers on how good and reliable this vehicle is.
If you saw my comment on my not purchasing an extended warranty, the vehicle in question happens to be a 2016 Buick Encore. It was redesigned for 2017 but the engine and transmission are the same unless the vehicle has the slightly more powerful version of the 1.4 liter 4 cylinder, which ours doesn't have. By 2016, GM had pretty much gotten all of the bugs out of the regular 138 hp 4 cylinder turbo. The transmission is a good one as well. My wife has been completely satisfied with her Encore. It's been trouble-free for the nearly two years that we've had it. I would recommend it, but stay on top of the maintenance, especially that the engine is turbocharged. I would also recommend using a middle grade fuel in lieu of the 87 octane, especially in the summer months, despite what the owner's manual says. We have found that the vehicle runs best with the 89 octane.
They are Korean Made but I think their weak point is the small turbo engines
@@josephjackson2599 because of horsepower or reliability? Does the engine have to overwork to move it? The Outlander was like that, a hamster pulling a brick! That didn't have Turbo.
Warranties can only be issued by the car manufacturers. Junky insurance policies can be issues by anyone.
Just bought a Audi Q3. I am here to listen to you. I bought a courtesy car it has 5000 miles on it. I can drive it unlimited miles 4.4 months under warranty. Trying to decide if I want the
extended warranty. I plan on keeping the car. I only drive about 5000 miles a year if that nowadays. I believe they want $3200 for an additional four years. Don't have the exact figure with me right now.
I only drive 5k a yr.& 63 yrs young.
🗣So... don't buy it right?
#thehomeworkguy
What is the link for a forum where people discuss them?
#5. You mentioned to negotiate "their cost" . . . how do you find out their cost of a plan?
I am looking at a 2014 Nissan Pathfinder 96K miles at carmax. I realize it’s older and has miles so I want to protect myself and my limited budget. Which warranty out there should I get? Thank you
Brand new vehicle, Certified pre-owned with less than 20k miles , bought from dealership typically means, it is a very good and reliable vehicle. Guess what it is still under manufacturer's warranty for 20k miles and possibly a year or more depending on the model year. Sure, things would break down- but as Ramsey says IF you can't afford expenses of 2k, you are not supposed to buy a 90k car to begin with! Also, maintain the car well, get the oil changes done regularly and take care of it as you would anything that is precious. These will last. I knew that German cars are over engineered and have low reputation for reliability and Asian cars like Toyota and Hyundai are extremely reliable while being simplistic engineering and trust worthy engineering, but still even German vehicles if maintained well, would last forever with very few problems ..
Just bought a new 23 malibu. With my discount 750 rebate i got it for 24650. Only thing i paid was the 260 doc fee didnt see any other fees. But i did fall for the factory bumper to bumper extended warranty for 8 yrs or 100k miles. Ive never bought extended warranties in my life until this one. Since gm only offers 3yr or 36k miles bumper to bumper i liked thght of evrything being covered for 100k which will take me the full 8yrs to put on or not quite. Cost me 2500 is that a gd deal if not if i go back and cancel it, its alrdy on the loan just take that 2500 and put a payment on the loan?
I just bought a new C-5 Mazda. Don't feel bad, I feel for it too. Especially with all the news about cars awaiting parts during covid, and falling apart, I was convinced that they don't make them like they used to. F&I guy wanted about $2600 for a 10-year 100K plan, bumper to bumper. His second offer was 7 year/75K plan for $1770.00. Decided to get the cheaper plan as I don't expect to still have the car in 7 years. The amount you got sounded about right. In the end, peace of mind.
If you’re buying a Lexus or Toyota, you can skip the warranty. It you’re buying a used BMW or Mercedes, especially one of their higher end models, you’d be a fool not to buy one. I know one guy who had a used 6 series (like a 2016?)…the engine blew. $20k+ in repairs…covered by his service contract. It’s actually one of the reasons I would never by a twin turbo V8 from BMW…they are almost designed to overheat and melt the plastics/gaskets…especially that N63 engine.
I wonder if you know about Hendrick Autoguard. Trying to cancel them after learning how much it would be total, about $6k for the Platinum plan 5 years 100k miles and that I could just get Hondacare for about a fraction of the price. They said I had to go to the dealer and talk to finance and then get this cancelled. Haven’t made any claims and I’m still within the 60 days to get a full refund too! Thanks. Or should I just keep it and not bother? $50 deductible there.
Every extended warranty has their pros and cons. I've never bought one, and never regretted it.
Hi Kevin. Am in the market for a VSA, Any advice? Do you of any reputable compinies AM looking @ AUL or NAAC