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Car Dealer people: Familiar with those aftermarket warranties?


iwashmycar

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So on my FJ forum someone brought up 'getting a warranty on a used car'. This got me thinking about mine.

 

Bought the FJ last May with 51K miles. While purchasing it I was told for my financing I could get a lower interest rate with a warrantied used car. Basically I save a grand on interest with the lower rate, but the warranty is something like 2000. I decided to go for it since I would pay a grand for a 5 yr. 100K miles warranty. (The early 07 FJs supposedly had some quirks with the transmission)

 

The "aftermarket" warranty is a 5 yr / 100K Premier Plus VSC from Premier Dealer Services (part of Great American Insurance Group I guess). Googling them certainly does not make me feel very good about them lol. First question is was this probably a stupid mistake? I remember talk with the financing guy that it is prorated and could be canceled. (I want to say it was "after 6 months")

 

I was going through all the previous owners papers / service records that came with it in the glove box and they have Toyota's 7 yr / 100K mile Platinum warranty on it. I have heard it is transferable, but I have yet to look into that mess. I'd rather definitely use the Toyota one obviously if possible.

 

So main question still stands.... and insight on these things?

I have only driven it 6K miles so far so it may very well see the year limit instead of the mileage one...

 

Thanks!

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I'm a sales manager at a dealership. I did finance for almost two years and sold a lot of extended service contracts. If buying a used car, I've always bought one. Leased an Acadia last year and didn't get one for obvious reasons. I strongly suggest doing it but do your research first. Only buy an after market one from the dealership that you plan to have it serviced at 90% of the time. This will ensure that you'll have an easier time getting claims paid. Also, don't buy any coverage other than the top coverage (usually labeled platinum). Make sure it's exclusionary coverage and read the back of the contract before you sign/buy it.
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I had one on my 2002 325xi. It was 5yr 100k additional miles as well.

 

Anyways, I started having problems with 5th gear sticking in it's gate..common problem with the gate bushings and springs getting wear and needed replaced.

 

Needed to drop transmission, so we went and got quoted, $1k in labor alone. Went to go file for warranty through that company. Goes to show they denied it, then went bankrupt and disappeared.

 

Never went through with it and learned to deal with it. Never used that warranty either.

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I have one on my scion but if I don't use it they give me the money back, providing they are still operating next year I'll be getting around $1400 back I think. I've bought one twice once with my WS6 which was definitely used and I'm glad I had it and now with the scion that I haven't used yet.
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PDS is here in town I believe. I work for a TPA or Administrator for VSCs. The main thing with these contracts is people do not read them. Most contracts list specific coverages, but when people buy them, they assume it is bumper to bumper. Just make sure you read what you are buying.
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I had one on my 2002 325xi. It was 5yr 100k additional miles as well.

 

Anyways, I started having problems with 5th gear sticking in it's gate..common problem with the gate bushings and springs getting wear and needed replaced.

 

Needed to drop transmission, so we went and got quoted, $1k in labor alone. Went to go file for warranty through that company. Goes to show they denied it, then went bankrupt and disappeared.

 

Never went through with it and learned to deal with it. Never used that warranty either.

 

You didn't have a Heritage Contract did you?

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being from the service side of things if you take care of your car then service contracts are a huge waste of money. if you ever use it you still have to pay your deductible so add $400-$500 to the $1500+ you already spent on it.

 

chances are higher that you'll only use it for wheel bearings, water pumps, ect. that cost $800 or less and then you pay your $500 deductible and the warranty company pays $300.

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being from the service side of things if you take care of your car then service contracts are a huge waste of money. if you ever use it you still have to pay your deductible so add $400-$500 to the $1500+ you already spent on it.

 

chances are higher that you'll only use it for wheel bearings, water pumps, ect. that cost $800 or less and then you pay your $500 deductible and the warranty company pays $300.

 

I ended up saving like $4000 with mine, and I took care of my car. Shit got the headgaskets/timeserts authorized on the 2nd to last day before the warranty expired too, although the service writer played a huge role in getting them approved.

 

I forget everything as it was years ago but I got the alternator,ac compressor,brake work, electrical work and then got the timesert/headgasket job done. Also my deductable was $50 or $100 and the warranty itself was $1500, this was 12 years ago though.

 

That said a buddy of mine saw how I made out like a bandit and purchased one only to get completely fucking shafted. He took his car to a smaller shop for service and ran into all kinds of problems with authorization etc. Once he broke even on his policy the warranty company flat-out canceled it with absolutely no justification (a year before it was set to expire btw) and word-for-word told him "sue-us".

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I ended up saving like $4000 with mine, and I took care of my car. Shit got the headgaskets/timeserts authorized on the 2nd to last day before the warranty expired too, although the service writer played a huge role in getting them approved.

 

you bought a northstar so you were stupid anyways:lolguy:

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