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I agree, Most extended warranties if not all have a max cap of $6.500, so if it is a 5 year warranty and have a breakdown that exceeds that amount up front or in the first claim, you are just out of luck. so if the warranty cost $3,000 you have already paid half of your own service work. On top of that they make sure that you do the maintenence, no aftermarket intakes and the list goes on. Normally there is a 3 month and 1000 mile grace period before the coverage begins. Just understand that those warranty companies are not in business to loose money.They would not insure vehicles that have a pre-exsisting condition or if they feel that particular vehicle has a bad track record.
Not all max at $6500.....or have a 3 month/1000 mile exclusion period. The coverages aren't meant to fix a problem that existed prior to the customer owning the vehicle or prior to the effective date of the contract, so no... pre-existing conditions aren't covered, but the vehicle itself will be and any future problems.
"Not in business to loose money"... who is? .... if a business did not MAKE money they wouldn't be in business.. in this case to provide "warranty" coverage. Only makes sense, but yet I see so many people say the same stupid thing.
Not all "warranty" companies are such money makers.. I work for an "extended warranty" company and when a legit company pays claims, they are not rollin' in the dough as everyone seems to think.
Especially if they coverage Mercedes (or most any European vehicle). I regularly see claims totals near or above 10K.
I will advise that if a single repair cost more than the value of the vehicle then they will not pay it and only give you what the vehicle is worth. Is this wrong? Nope your auto insurance works the exact same way. Nobody is going to pay more than the car is worth to make repairs.
If you are interested in an "extended warranty" I would suggest you check with your local insurance agents and your local Credit Unions.
I would suggest going with a "warranty" company that is an Insurance Company rather than a stand alone company. This is what has given the "extended warranty" companies such a bad rap. These stand alone companies would take your money and go out of business, leaving you with nothing. The insurance company is more regulated by the Government and has other assets to keep the company in business.
There are alot of bad warranty companys out there so you have to do your research. Carmax is generally sold by the dealership so its expensive and $6500 limit of liability is generally for basic powertrain for older vehicles bc they are a higher risk. Carmax has alot of ripoff reports but there are other companys out there that are good. If your looking for a warranty invest more and purchase a comprehensive or b2b warranty, it's worth it.
I bought a 2002 Cadillac Seville STS with 39,000 miles on it in 2006 from Car Max. I bought the max care extended warranty which covered me up to 100,000 miles or 6 years whatever came first for about 2000 dollars extra. I have never regretted it. I have had over 11,000 dollars in repairs including a brand new transmission , computer, sterring shaft, crank sensor, alternator, coolant resevoir, stabillity sensors, all 4 elecrtic window motors replaced twice, fuel gauge sensor, two front seat heaters, and many other things! I never had a problem with the warranty when I took it to a car max repair facility, however, I had some problems when I took it to the dealership as the dealership only wanted to use new GM parts and the warranty company wanted to use rebuilt parts. The car is still protected under the warranty as I have only 94,000 miles on it and the 6years won't end until 9 months from now. it has been a grat investment and a great piece of mind!!!
15 years ago I bought a used Chevy off a Toyota lot. For $50 I was able to get the Chevy factory extended warranty signed over to me. Paid for itself in a few months with a replacement engine and transmission.
Most consumer guides will tell you that theses warranties are one of the worst deals that you can find. They re huge profit centers and that is why sales people push them so hard. You are better off just giving the salesman a couple of hundred dollars extra to stop pushing the warranty.
factory warranties are different because they come with the car. however the extension of such a warranty is another rip off.
Once in a while a warranty purchase pays off for a customer, and they get testimonials from them. However buying a warranty is a form of gambling and as a whole purchasing warranties are a bad bet. they may lose money on two of them but make a killing on ten others and they net huge profits. You are much more likely to be one of the ten who pay a lot and get little or nothing, than one of the two who are happy that they bought the warranty. Salesmen get big commissions to sell them. That money comes out of your pocket. better to put the money in a bank account and save it for your own repair bills. That way everything is covered, no matter what.
Most consumer guides will tell you that theses warranties are one of the worst deals that you can find. They re huge profit centers and that is why sales people push them so hard. You are better off just giving the salesman a couple of hundred dollars extra to stop pushing the warranty.
factory warranties are different because they come with the car. however the extension of such a warranty is another rip off.
Truth.
Expecting to come out ahead with an extended warranty purchase is the same as sitting down in front of a slot machine, spending the next 10 hours putting in coins and pulling the handle, and expecting to come out ahead. Every once in a while it does happen, but for every one of those stories there are dozens more of people quickly coughing up everything in their pocket and then half their credit line on their credit card. The mathematical expectation for the consumer is - always - that he will lose. And that's exactly what happens much more often than not. And is exactly why, as you said, company salespeople push them so hard. Companies love revenue with next to no associated cost and extended warranties are the easiest profit they make all day.
I put extended warranty marketing in the category of fraud without hesitation, since so many people seem to have a problem understanding how they are being taken by them. I've thus long felt that some sort of legal restraint needs to be in place to save people from their own gullibility.
Complex car = potential expensive repairs = beyond rainy day fund
Quote:
Originally Posted by M3 Mitch
According to Consumer Reports, extended warrenties are not worth what they cost.
You would be better off putting what the extended warrenty would cost into the bank as a "rainy day" car fix-it fund.
There is a lot to be said for driving a car you can not only afford to own, but afford to fix, out of pocket.
************
@ Mitch (I think it is...)
Depending on how complex the car you're interested in, and what its history for possible electric / electronic / computer failure, etc., etc., the extended warranty might not be a bad idea.
My experience has been (in only 1 year) that the cost of the coverage has be dwarfed by the repairs needed on my 2005 Cadillac SRX (special edition). The thing is, when these things fail (particularly electronically), the cost involved far exceed what you'd imagine; it's not a Ford Focus.
Carmax warranty not bad - at least in Knoxville (and when used at Cadillac)
Quote:
Originally Posted by Coldjensens
Most consumer guides will tell you that theses warranties are one of the worst deals that you can find. They re huge profit centers and that is why sales people push them so hard. You are better off just giving the salesman a couple of hundred dollars extra to stop pushing the warranty.
factory warranties are different because they come with the car. however the extension of such a warranty is another rip off.
Once in a while a warranty purchase pays off for a customer, and they get testimonials from them. However buying a warranty is a form of gambling and as a whole purchasing warranties are a bad bet. they may lose money on two of them but make a killing on ten others and they net huge profits. You are much more likely to be one of the ten who pay a lot and get little or nothing, than one of the two who are happy that they bought the warranty. Salesmen get big commissions to sell them. That money comes out of your pocket. better to put the money in a bank account and save it for your own repair bills. That way everything is covered, no matter what.
I hear your logic, but complex cars cost a lot of money to repair. Thankfully, and despite the numerous repairs that we've had to have to our 2005 Cadillac SRX (special edition), the good folks at Cadillac of Knoxville have accepted Carmax's warranty and done truly EXCEPTIONAL work (using only the deductible on my Carmax warranty, and the pay-out from the CarMax-branded warranty).
It has been a breath of fresh-air, actually; particularly the Cadillac of Knoxville-connection.
Thank God for Cadillac of Knoxville, actually. Prior to their recent start-up, their predecessor ("Rogers Cadillac) was one of the most arrogant & poor maintenance facilities I've ever had the displeasure to witness. Frankly, their failure of business (they no longer exist) is no surprise to me - they cared more about their attitudes than making actual repairs to Cadillac automobiles. So, good-riddance, Rogers Cadillac.
Airport Cadillac was not much better, only slightly. Both are now out of business. The key to both of their failures was a front-end "attitude" that generally makes customers walk away. On top of that, Rogers Cadillac actually refused to work for the $75.00 hourly rate (that the Cadillac warranty provided) and demanded $135 a hour. How totally absurd! Like I said, good riddance, Rogers Cadillac.
Back to CarMax's warranty, I've had nothing but success at Cadillac of Knoxville. These guys are true professionals, and they always treat my wife respectfully and honor their appointment times. What a concept!
On a different note, and although our 2005 Cadillac SRX is our first Caddy, the exceptional service we've received at Cadillac of Knoxville encourages me to consider them for a future Cadillac purchase. I've seen the back-end (service), and that is what it's all about; anyone can buy a car. But will it be serviced properly and with responsible hands? At Cadillac of Knoxville the answer is yes.
So, I would recommend considering the CarMax warranty in Knoxville, TN (if only for a Cadillac purchase), but when it comes to CarMax mechanics themselves, I must say that they seem (if only due to their management's failure to allow them to actually do the right thing!) to be nearly entirely incompetent. They failed to service our Cadillac properly 100% of the time, and if not for Cadillac of Knoxville, we would've been out of luck; and my 2005 Cadillac would have been on the skids by now.
Bravo Zulu Cadillac of Knoxville maintenance!
Shame on CarMax of Knoxville's shop manager(s)... who literally refused to repair an engine problem on our car. So ridiculous!
It depends entirely on the vehicle, it makes a lot more sense on a BMW or Jaguar than it does on a Toyota Camry or Honda Accord. That being said, a friend of mine, who's a used car sales person actually did buy the extended service plan, within one month, over $7000 worth of repairs were done, he paid nothing. (VW Passat)
Note, the company providing the coverage for the Max Care Extended service plan is the same company that provides it through USAA, who are pretty widely known to be reputable.
I bought a 2002 Cadillac Seville STS with 39,000 miles on it in 2006 from Car Max. I bought the max care extended warranty which covered me up to 100,000 miles or 6 years whatever came first for about 2000 dollars extra. I have never regretted it. I have had over 11,000 dollars in repairs including a brand new transmission , computer, sterring shaft, crank sensor, alternator, coolant resevoir, stabillity sensors, all 4 elecrtic window motors replaced twice, fuel gauge sensor, two front seat heaters, and many other things! I never had a problem with the warranty when I took it to a car max repair facility, however, I had some problems when I took it to the dealership as the dealership only wanted to use new GM parts and the warranty company wanted to use rebuilt parts. The car is still protected under the warranty as I have only 94,000 miles on it and the 6years won't end until 9 months from now. it has been a grat investment and a great piece of mind!!!
Maybe the warranty was a good purchase, is this atypical case, but that car sure wasn't!
Don in Austin
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.... if a business did not MAKE money they wouldn't be in business.. in this case to provide "warranty" coverage. Only makes sense, but yet I see so many people say the same stupid thing. 
Complex car = potential expensive repairs = beyond rainy day fund
