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Almost certainly a rip-off. A huge profit center for the dealerships.
Virtually all of the cars come with a five year, 60K mile power train warranty. If other stuff is breaking, you'll probably want to dump the car anyway. That, fortunately is a rarity today.
My recollection is that CU did not recommend these warranties.
I researched the heck out of this and found two companies that actually had a A rating with the BBB, Warranty Quote dot net which is a division of Red Auto Protection, and AAA (but I found out AAA doesn't do the actual coverage). I went with Red Auto Protection .
So I recently fell out of warranty with my 2010 Toyota and had the transmission go out. I was fortunate that I purchased a certified extended warranty through [url=http://www.WarrantyQuote.net]Warranty Quote | Don't let your Warranty Expire – Save Costly Repairs – Get a Free Quote Now[/url]. I have to honestly say they completely covered all costs and did so with a great attitude.
It sounds a bit too good, but...
-ask if covered repairs can be made at any place in your area, or when travelling, not just that dealer, (or a couple of places he is pushing/connected with).
-ask to see the entire fine print, including 'what is not covered', and its detail
-ask who/what company is underwriting the 3rd party coverage. Check them out on the net for rep, etc.
-if the dlr gives you a copy of what is/what isn't covered and all the fine print, study the detail about a part being covered/not covered due to 'wear and tear' vs 'defect'. Some companies will disallow W & T, even though it's a mechanical part deep inside the engine.
-the auto trans section of many 3rd party policies is vague, on purpose; trans diagnosis and repair is pricey and not an exact science, even by 1st class reputable places, and most auto trans are connected/driven by very complex electronics in the EMS.
-It is a gimmick if all/most of the above is not legit, clear, concise and offers your choice of location for repair, imo.
-It is not exactly a 'warranty'; it is an insurance 'product' and if the company is legit their actuaries have done the cost accounting and arith and nailed down the loss/coverage potential, almost always in the company's favor. If it is truly 'free' to you the buyer, then it is suspect and the cost of that coverage is somewhere in the cost of the car...
My 50Cts...
GL, mD
Not only that but I guarantee you ONE missed/skipped or longer than recommended service interval and I bet they deny coverage. Because they will want EVERY record of the maintenance performed. It's a gimmick since most people don't keep their vehicles long enough ( certainly not a lifetime ) to its that warranty. The few that do keep their cars forever and have a covered warranty claim are paid for by the many that don't. If they sell 450,000 whatever's and say 3,000 people kept the car for a long time and 300 kept them till they died the car most likely fell start. And the body and interior/accessories aren't covered. So now you got a lifetime powertrain warrant in a clapped out vehicle
the nationwide lifetime warranty is actually covered by a insurance company and not a dealership. It can be used anywhere in the united states including parts of Canada as long as you use a ASC certified mechanic or shop. You have to do the maintenance that the owners manual says to go by in order for it to be valid. Yes it covers the engine, transmission and drive system for life unlimited time and miles
AND you do not have to do the service work at the dealer you bought it from
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The problem with those is that people don't read the fine print and figure they will never have to pay for any repairs. First, most will have a deductible, but they never cover normal wear, only failure of parts. In other words, when after 8 years at 190k miles or so your engine smokes at startup due to worn valve guides, or the transmission starts slipping, the shop takes it apart to see what's wrong. The insurance provider sends someone to look at the open engine/trans and determines it's worn out - so not covered. Now you owe a few hundred already for the cost of taking it apart, and they give you an estimate of $2,000+ to repair/replace something on a vehicle that may only be worth a couple of thousand.
I agree people don't read the fine print but it is also something that should be gone over with the customer. It's not as if the customer is paying for the warranties.
Ours covers the engine transmission and the drive system. It covers the pumps,gaskets etc. AS LONG as you do what the manufacturers book says needs to be done for maintenance.
You are not allowed to do any of the work yourself a licences facility has to complete the work to be valid.
There is a $100.00 deductible and that covers the shop,repair and the replaced item. (engine transmission... )
Almost certainly a rip-off. A huge profit center for the dealerships.
Virtually all of the cars come with a five year, 60K mile power train warranty. If other stuff is breaking, you'll probably want to dump the car anyway. That, fortunately is a rarity today.
My recollection is that CU did not recommend these warranties.
With more and more small parts manufactured in china modern cars are going to have more and more trouble. The old saying goes "they sure don't make em like they used to" Like i mentioned before technology advances but quality goes down. You can't have both...well you can but it will be very expensive. The high cost of r & d and adding all this new tech into cars is not cheap. Car manufacturers know the millennials only care about technology so they cut back on quality to keep the car prices within range of these buyers.
As far as the lifetime warranties they know most new car buyers won't keep the car that long to take advantage of it. I've always thought any company any product that offers a lifetime warranty was pretty much a lure to get buyers because there was no other way. A company that manufactures real quality products doesn't offer lifetime warranties.
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