Aftermarket vehicle warranties?

[DaveTN]

My Silverado factory warranty is up soon and I didn’t buy an extended warranty when I bought it. I’m thinking about getting one and will go talk to the local Chevrolet dealer.

Before doing that I would like some information on rates and reliable companies. Anyone have any suggestions?

[Grunt67]

Thought about doing that when I bought my F-150, talked to the dealer, but was too expensive. Can't remember the figures, Seems like it was around $2K or so.

There are several 'outside the dealer' companies advertising on TV, no prices quoted, but some dealers won't honor those & you have to file the claim yourself.

My only suggestion wold be 'tread lightly', which goes without saying.

Good luck........

[Johnny Rotten]

I bought GMPP for my H1 Hummer from Crest Cadillac back in 06 for I think $2500+/- with 0% interest rate, it was a 36mo extended factory warranty, just prior to my 3yr/36k factory warranty expired my truck received $12k worth of service and a $1500 tow bill from Huntsville to Nashville, the first 35mo of my GMPP warranty nothing happen but I had a $6500 bill 1 month before it expired, so it was worth it to me and service wasn't declined for any BS reason.

[Erik88]

I've always heard these warranties are always a better deal for them, than they are for you. There is a reason the dealer pushes them so hard. 

[A.J. Holst]

I am knowledgeable.

Rates adjust by vehicle, mileage on the vehicle, coverage and term.

2000-3500 for a good service contract (factory like) is not unreasonable.

You should be able to extend your GM or purchase a CNA (about the best non factory and private label for some mfg'ers) 

Service inspection, probably $150 to avoid the "pre existing" issue.

I've got virtually all the franchise dealers from Athens to Trigger Cities as clients, let me know if I can refer you!

[A.J. Holst]

1 minute ago, Erik88 said:

I've always heard these warranties are always a better deal for them, than they are for you. There is a reason the dealer pushes them so hard. 

It's a great deal for the dealer if you never use it.

It's a great deal for the consumer if they do use it, moderate repairs start at $500 and even better if an electronic component fails.

Kinda like insurance unless you've got the correct change to self insure.

The key is buy the right terms for your driving habits. A 5 year 50k is great, but I'll be out of warranty in 2 years, so I need miles, not time.A person who drives 10k year may be better off with more time vs. miles.

Buy the most comprehensive coverage available, power train / power train plus is a joke - most cars don't have drivetrain failures, its all the accessories!

[DaveTN]

1 hour ago, Gotthegoods said:

I am knowledgeable.

Rates adjust by vehicle, mileage on the vehicle, coverage and term.

2000-3500 for a good service contract (factory like) is not unreasonable.

You should be able to extend your GM or purchase a CNA (about the best non factory and private label for some mfg'ers) 

Service inspection, probably $150 to avoid the "pre existing" issue.

I've got virtually all the franchise dealers from Athens to Trigger Cities as clients, let me know if I can refer you!

I’m just trying to find out the pricing before I go to the local dealer.

I found this online. It is the only one that gives pricing without calling you.  It is Knapp Vehicle Service Contracts. I don’t know anything about them but they claim to be “Genuine Chevrolet, Buick, GMC, and Cadillac Protection Plans (GMEPP)”.

These are the prices they gave me for a 7 Year 100K plan on a 2015 Silverado 2WD with 29K miles. (They have a lot of other options but these are the longest)

84 Month, 100K, Platinum plan, No deductible: $3250

84 Month, 100K, Silver plan, No deductible : $2962

https://www.knappvehicleservicecontracts.com/

Any advise would be appreciated.

 

[bersaguy]

Quote

 

I have no clue about after market vehicle insurance these days since I have been out of the repair business for some time. I can tell you some horror stories about the ones that were around back 25 years ago. They were all rip offs.

 I had customers that had purchased them and paid big bucks for them and got zero or almost zero in return when they had a claim. I am quite sure things have probably changed a lot in 25 years.

My son took over the business when I became disabled as far as being able to work on vehicles and he has told me of a couple times his customers had claims and ended up getting lawyers and sueing the company to get their money back or their bill paid.

My son does all general repairs but specializes in Rebuilding Transmissions and the cost to build the transmissions would almost make you want to just buy a new vehicle. I was down at his shop one day and he had just fnished rebuilding to Automatic transmission in a Volkswagon Beetle and I was looking at the bill. $4,734.00 and he did it at $1000,00 less than a dealer quoted the customer. The guys aftermarket warranty company would only pay $1500.00 of it leaving the customer to pay the difference. The customer was just going to trade it in on another Beetle as it was his daughters car but she loved the car so he fixed it.

Thats about all I know about after market warranties but I do hope they have improved since I was turning wrenches.  

Edited November 9, 2018 by bersaguy

[gary_boom]

My Mother has a 2000 Corolla and still gets offers in the mail for extended warranti es. I would be careful.

[dralarms]

32 minutes ago, gary_boom said:

My Mother has a 2000 Corolla and still gets offers in the mail for extended warranti es. I would be careful.

Shoot, I still get them for my 06 ram and it’s got almost 323000 on it. If I signed up they wouldn’t cover anything 

[Grayfox54]

An extended factory warranty is an expensive but worthwhile option. All of the aftermarket warranty companies are a total rip off and a waste of money. 

[gregintenn]

3 hours ago, DaveTN said:

I’m just trying to find out the pricing before I go to the local dealer.

I found this online. It is the only one that gives pricing without calling you.  It is Knapp Vehicle Service Contracts. I don’t know anything about them but they claim to be “Genuine Chevrolet, Buick, GMC, and Cadillac Protection Plans (GMEPP)”.

These are the prices they gave me for a 7 Year 100K plan on a 2015 Silverado 2WD with 29K miles. (They have a lot of other options but these are the longest)

84 Month, 100K, Platinum plan, No deductible: $3250

84 Month, 100K, Silver plan, No deductible : $2962

https://www.knappvehicleservicecontracts.com/

Any advise would be appreciated.

 

Put the money in a savings account, maintain and drive the truck well, and pay for repairs yourself (there probably won't be many if any).

I replaced a transfer case, front differential, and heads on an 02 Silverado and didn't spend that much money!

Extended warranties are designed to take advantage of folks who aren't good at managing money.

Edited November 9, 2018 by gregintenn

[DaveTN]

Just got back from Chevrolet. Got a full warranty.

[1fast4by]

I have worked with many of them, i have even worked for the Nissan backed one in house. Some are great, some are garbage. It is most important to remember, its not actually a “warranty”, its a Service Contract. So follow the words of the contract well. There are things that it will cover, and many things it flat out wont. It will all be spelled out in the terms of the contract. Also make sure you are keeping records of maintenance. If you went to the GM of Murfreesboro, most likely they sold you a Total Warranty Services (company) contract. it is a company owned by AMSI which is the same company that owns that dealership. While I cant whole heartedly endorse that dealerships service department, that service contract company is pretty good to deal with.

Edited November 9, 2018 by 1fast4by

[A.J. Holst]

20 hours ago, gary_boom said:

My Mother has a 2000 Corolla and still gets offers in the mail for extended warranti es. I would be careful.

Yeah, stay away from these types of used car service contracts, mail or TV solicitation.

[A.J. Holst]

16 hours ago, 1fast4by said:

I have worked with many of them, i have even worked for the Nissan backed one in house. Some are great, some are garbage. It is most important to remember, its not actually a “warranty”, its a Service Contract. So follow the words of the contract well. There are things that it will cover, and many things it flat out wont. It will all be spelled out in the terms of the contract. Also make sure you are keeping records of maintenance. If you went to the GM of Murfreesboro, most likely they sold you a Total Warranty Services (company) contract. it is a company owned by AMSI which is the same company that owns that dealership. While I cant whole heartedly endorse that dealerships service department, that service contract company is pretty good to deal with.

Terry Taylor learned all he could from JM&A, kicked them out of his stores when he stated the TWS division OF AMSI. His brand is First Mile.

1fast makes an EXCELLENT point, while most brand name products are pretty good, service departments are NOT created equal!

[A.J. Holst]

17 hours ago, DaveTN said:

Just got back from Chevrolet. Got a full warranty.

Dave, a 15 with 29k adding 84 / 100k should give you turn key ownership for the months, doubt you'll hit the miles.

[A.J. Holst]

18 hours ago, gregintenn said:

Put the money in a savings account, maintain and drive the truck well, and pay for repairs yourself (there probably won't be many if any).

I replaced a transfer case, front differential, and heads on an 02 Silverado and didn't spend that much money!

Extended warranties are designed to take advantage of folks who aren't good at managing money.

I don't disagree with making a monthly car repair payment to yourself, but what if the repair exceeds you budget?

Buying used? Do you want a fixed or variable payment? $400 when life is good, $400 + $1700 for AC?

Better deal to buy a service contract for a $440 monthly payment?

What's a bad deal or poor value for one is not necessarily for others, especially since life experience and perspective changes.

And with the electronic components including steering and suspension, mechanical repairs are comparatively cheap

Edited November 10, 2018 by Gotthegoods

[gregintenn]

6 minutes ago, Gotthegoods said:

I don't disagree with making a monthly car repair payment to yourself, but what if the repair exceeds you budget?

Buying used? Do you want a fixed or variable payment? $400 when life is good, $400 + $1700 for AC?

Better deal to buy a service contract for a $440 monthly payment?

What's a bad deal or poor value for one is not necessarily for others, especially since life experience and perspective changes.

And with the electronic components including steering and suspension, mechanical repairs are comparatively cheap

You make money from selling these, right? I have no problem with that as long as you represent them honestly. As with all insurance, when the seller makes money, the buyer, on average, loses that money.

Stuff like this and car payments is what keeps broke people broke in perpetuity. It is a side effect of buying stuff one can't afford.

[A.J. Holst]

25 minutes ago, gregintenn said:

You make money from selling these, right? I have no problem with that as long as you represent them honestly

Not personally, wife does.

I have seen them sold and purchased, approved and funded on auto loans since 1994. Have one on our personal vehicle.

Have seen great to yikes. 

The "yikes" is why Greg's honesty statement is so important! Know what you are buying, what is included, and maybe more importantly, excluded.

29 minutes ago, gregintenn said:

with all insurance, when the seller makes money, the buyer, on average, loses that money

At least I know my wife will get to use my life insurance. 

 

32 minutes ago, gregintenn said:

Stuff like this and car payments is what keeps broke people broke in perpetuity. It is a side effect of buying stuff one can't afford.

Most folks don't have $8,000 cash plus to buy a reliable used car.

To your point, you can get approved for 10-20% of your monthly gross income for a car payment, just because you can afford and easily budget $600-$800 or more, should you? Not my place, money, or decision, I'm not buying the vehicle and I won't have make 72 perfect payments. 

It seems to me it's more about buying based on desires and wants vs. actual transportation needs.

Want to trade at 30 months with limited trade equity and down payment, let the games begin - with approved credit you can get approved for up to 130% of MSRP so you can roll the negative into your new car. This stems from the lenders needing and wanting loan growth and consumers ignoring math for magic.

Lots of great new and used vehicles with good miles for $15-$24k.

New full sized trucks, SUVs and fully equipped cars are simply outrageous.

And let's not forget about keeping up with the Joneses.

 

[DaveTN]

1 hour ago, Gotthegoods said:

Dave, a 15 with 29k adding 84 / 100k should give you turn key ownership for the months, doubt you'll hit the miles.

Thanks,

 I added 6 years and 75K to what I already had. It’s a “First Mile” the business agent said it’s owned by the same company that owns Murfreesboro Chevrolet. It appears to cover most everything the factory warranty does. It wasn’t cheap, but it wasn’t much more than the only internet site that gave me a quote.

I feel better buying it from the dealership that would probably do the service if required.

[Danger Rane]

Just my opinion but I tend to think these are a waste of money. When I bought my last truck the dealer was pressuring me pretty hard to get an extended warranty because the factory warranty only covers 3 years/36k miles. I told him that if he felt I needed the warranty that bad when I hit mile 36,001 then I should probably go buy a different brand of truck. He didn't find it funny but he shut up.

gotthegoods, you mentioned that this is a good option if repairs exceed ones budget, and I think that's absolutely the wrong way to look at things. When someone shops for a vehicle they need to keep in mind not only the purchase price but also fuel consumption, collision insurance and repair needs. If I can't budget for future repairs on my truck maybe I should get a smaller (cheaper) truck or a car.

My wife and I have a car fund that we put the equivalent of a car payment into monthly along with any tax returns we get each year. We get to collect interest on this account and have it on hand should an emergency arise, but usually it's used for things like new tires or vehicle repairs as they come up. We do this religiously and have been able to save for each of our last two vehicles and buy them outright. We are not wealthy and probably never will be, but this methodology has saved us a ton of money over the years.

The hardest part for most people is being able to wait while they save, as they want the big shiny thing now. The other part is being willing to get ones hands dirty and get outside their comfort zone. I'll be the first to admit that a transmission or engine swap on any of my current vehicles is outside my scope of skills, and I would begrudgingly have to take it to a shop for that level repair, but it's easy to save a ton of money on most repairs with some YouTube videos and a basic set of tools. I replaced both front hub bearings on my car for $96, the shop wanted over $900. High pressure lines on my wife's van, bought part for $51 on Amazon installed myself with a lot of cursing, the shops wanted $500-700. Watched videos and repaired sliding door on wife's van with no parts needed, shop wanted $400-600 to repair. I am not really all that mechanically inclined, but my google-fu game is strong...people can do a lot more than they often give themselves credit for and save a ton of money in the process.

Edited November 12, 2018 by Danger Rane

[tnhawk]

On ‎11‎/‎10‎/‎2018 at 9:15 AM, Gotthegoods said:

Yeah, stay away from these types of used car service contracts, mail or TV solicitation.

I get mail and phone calls weekly to sell a warranty on a 2010 Titan.  It was totaled in 2011.

[gregintenn]

Late model vehicles, for the most part, are impressively reliable and don't require much work assuming one properly maintains and takes care of them. I don't own a vehicle with less than 100k miles, and so far all of them seem to be pretty much trouble free.