Mechanic’s View of Aftermarket Car Warranties

4 things no one is talking about when considering an aftermarket car warranty.
01:12 Reason #1 - Much Longer Wait Times For Repairs
06:29 Reason #2 - Diag & Denied Claims due to "Uncovered Parts"
10:03 Reason #3 - Predetermined Price on Labor & Parts
16:23 Reason #4 - Cost of Warranty Vs Policy Limits

[@ShadetreeAutomotiveLayton]

Worst Car Warranties! (and best) kzbin.info/www/bejne/n3q9l2xombmGabc

[@sevenpaulperalta929]

I tried to convince my friend not to buy a warranty, but he did it anyway. The celebrities promoting these products should be ashamed of themselves!

[@dhgmllcshea5038]

Well, ya gotta realize that some of them have gone broke from buying N.G. extended warranties on everything in their mansions...

[@toriless]

You mean Car Shield, I can name them since I have made not claim as to their service but I can not even think of a secondary one on broadcast ads. Others just use mail.

[@salimrandall]

Ice T and Vivica Fox are terrible.

[@unclebob7937]

Paid for acting... Don't blame them. DO YOUR RESEARCH. Don't buy these rip off policies.

[@robertmaybeth3434]

Now that you mention it. I feel Tom Selleck deserrves head of the line to Hell for pushing the reverse mortgage scam to gullible senior citizens! Many of these people are all alone, and have nobody around them with the normal cultural skepticism and emotional defenses against scammers and crooks!

[@WilliamKenyon-x8d]

40 years in auto repair, and I can confirm his every remark. Take the money that the warranty costs and put in a savings account instead. When your car breaks down, you'll have some funds to pay an honest shop a fair dollar!!

[@jeronronnunkoffunk4691]

That’s the theme or idea that kept going off on my mind as I listened to this video!!

[@nsp31a]

The pre-purchase inspection is the warranty.

[@leetos.4915]

100000% agree

[@drb4134]

But the closer in the financing office said it would only raise my payment $6 a month! /s

[@bobbobek2098]

Maybe if you have a cheap car, but when it comes to expensive cars it's better to have good warranty that includes absolutely everything on the car

[@Cocora22]

The previous truck I bought was a 2018 Cadillac Escalade. After 20 plus visits to the dealer, vehicle still under warranty, plus I bought their platinum extended warranty too, I gave up and sold it. I got most of the extended warranty money back after a lot of arguing, insisting, emails and many months of waiting. Had it less than 3 years. Next truck, Lexus GX 460, negotiated the vehicle, no dealer fees, tags title, registration and tax. It felt soooooo very good to say no to everything else! Soon coming up on 3 years of trouble free ownership, just maintenance. Really enjoyed your perspective on your business and the way you have to handle these companies.

[@CrazyPetez]

If I buy an extended vehicle warranty, it’s always from the vehicle manufacturer, that is Ford, or GM, etc. Thanks for the honest report on after market warranties.

[@ShadetreeAutomotiveLayton]

For sure! Thanks for your support!

[@billredding2000]

Yes...I'm getting a Mopar (my 3-year OEM/factory warranty runs out very soon). NEVER would go with an aftermarket/3rd-party extended warranty. -- BR

[@JimAllen-Persona]

Agreed. But you have to be careful, there’s a Honda dealer by me that’s selling “their” warranty as a factory warranty. Only good at their shop. Scamming b*stards. I forced my daughter to buy a factory warranty on her pre-owned car because it was in an accident once already. She wasn’t happy but my policy if I can’t self-insure I’m buying a factory warranty. Yeah I know it’s pure profit for them but like all insurance it’s a crap shoot. If it was new, I would’ve passed on it.

[@billredding2000]

@@JimAllen-Persona Well, made sure mine was a Mopar (OEM/factory) extended warranty (aka: service contract, aka: vehicle protection plan), but I got the best deal in-person at a local Jeep dealership: Mopar Maximum Care, 5-year/85K miles/$100 deductible (expires mid-April 2029) for $2245 -- $100 over dealer cost ($2145). Mopar is financing it (I wanted a 12-month term, not 18) @ 0% interest, no $$ down required and no "admin fee" like the online sources. I've heard some dealers do $50 over cost, but that's okay -- I'm fine with the purchase and it was a local dealer purchase. I agree though the almsot all auto dealerships try to get you any which way but loose, don't they -- one huge reason to research what you want to buy and not let them do any "creative financing" whatsoever. Or as you pointed out misrepresenting their products. -- BR (2021 Jeep Gladiator Rubicon)

[@elcheapo5302]

@@billredding2000 I have the Lifetime Maxcare Mopar warranty (no longer available) on my 2015 Wrangler Rubicon I bought new in 2014. Not one thing has ever gone wrong with it, and I'm not complaining. But I'm in my 40s and plan to live a lot longer. 🤣 Went with the 8 year (longest available) Maxcare on the wife's 2019 (bought new 2018) Grand Cherokee. It's been flawless to this point but the radio screen is starting to delaminate. Still works but looks bad. That'll be covered and I'll have broken even on the cost of the warranty once that happens.

[@bobm21]

Being an auto technician of 41 years, I agree 100%

[@bobfoltyn322]

I was involved in a a car lot as a investor and I wouldn't buy one.

[@yossarian451]

Whenever you buy a car at a dealership they push these vehicle maintenance warranties like crazy. There are super high margin for a dealer to sell. They tried to sell one to my son when he bought his first nice car. I explain to my son that the woman giving you a personal anecdote about how great the warranty is is a salesperson, and what she says to sell you the warranty is not binding. Once you buy that warranty and she gets a big commission, you're on your own. All these warranties like American home shield home shield are never worth the money and it usually takes people a couple of times of getting screwed to figure it out.

[@ivandemiguel8607]

I am convinced that there is case for a class action against aftermarket warranty and home shield insurance and I am convinced that it will ruin and close forever the two biggest scams in this country. It will bring down the price of buying a house and car, save thousands of dollars to owners and probably put out of business all those crappy, scammers, straight up thieves that call themselves Realtors and Car dealers.

[@toriless]

Read one, I got them to show me one, the not covered list is pretty much every expensive part to replace, shocks covered, transmission not, mirrors covered, engine block not, ignition button covered, infortainment not, you see a pattern.

[@senseisecurityschool9337]

Yep the $500 commission is the first $500 of the customer's money, gone before they even leave the lot. Less than half of the money goes to repairing vehicles.

[@Ryan-The-Grifter]

​@@ivandemiguel8607There's a law firm recruiting Car shield customers as potential clients if you know any. Sauder Schelkopf is the name of the law firm

[@fredhenry426]

Thank you. Well done. Never had aftermarket warranty and now confirms I never will. Great topic, first time for me. Appreciate it. Thanks again.

[@ShadetreeAutomotiveLayton]

Thanks for the support! 👍

[@toriless]

I had one on the house but it was the basic one. Those cover jobs that are quick to repair so you will find people willing to do the repair. Say you dishwasher panel goes out. He looked at it about a minute, ordered the part and once arrived spent less than 5 minutes replacing it. That part alone costs more than the first years rate. I was glad I had it.

[@joem.7621]

They will do everything possible they can to not pay out. Guaranteed. DO NOT BUY EVER.

[@ShadetreeAutomotiveLayton]

Yeah, very few step up

[@BiloxiBlues07]

​​@@ShadetreeAutomotiveLaytonWhat few are actually worth the hassle? Any thoughts on Endurance vs CARCHEX?

[@JohnS-il1dr]

​@@BiloxiBlues07no matter what avoid Car Shield

[@davidcasey-motley5403]

@@ShadetreeAutomotiveLayton Are you attached to a dealership? If so, have you had any issues with the third party extended warranties the dealership sells?

[@willboyd8021]

No to Endurance

[@craigsparton]

This man speaks the truth. Do not waste your money. It has gotten to the point where I just tell people I don't deal with extended warranties. One example, a lady came with a Buick Lesabre. The engine would not turn over and appeared to be locked up, but it was actually just the A/C compressor. Her "warranty" had a $100 deductible, did not cover fluids, didn't cover tax, and the rep told me they wouldn't cover a new or reman compressor and wanted to ship me a used one. In the end they ended up paying just over $100 on a $500 bill and she left with no refrigerant in the A/C because she didn't have the extra money to cover it.

[@toriless]

a BUICK, I want to barf, who would buy such junk!

[@Js-kt7sr]

​@@toriless women who have no clue about cars😂

[@Ryan-The-Grifter]

​@@torilessThanks for your relevant comment. 🙄

[@canuckchris5733]

I noticed the algorithm has changed somewhat Smaller channels like yours are now showing up in my feeds and the million plus channels have been pushed less to my feeds. So I liked and subscribed

[@toriless]

My guess is you are watching more channels about cars. I can guarantee it was suggest since I have been watching The Car Care Nut lately in addition to Scotty "waving hands" Kilmer. It is how KZbin works Watch Paquito or Jackson Galaxy and it suggests Ginger the Spoiled Cat. Watch PBS Timespace and Neil Degrasse Tyson shorts pop up. Watch Vincenzo's Plate and Uncle Roger pops up more or vice versa. Watch Brian Taylor Cohen and Meidas Touch starts getting suggested. I forgot how I was steered to Scammer Payback. It is all but general subject matter. Which sometimes gets moire specific. Watch an Ava max video, guess what, it suggest other Ava Max videos, she is so hot, but I digress.

[@dondalphinjr5953]

Same BS with home warranties. I was an hvac vendor for several, it was a headache for me to get things approved, and the home owner usually was screwed. One home warranty company even instructed us on how to find reasons to deny a claim

[@Jasiel.95]

It’s not easy for a shop to have a KZbin channel like this. Time is money and it takes time to make these videos so thank you for making these videos. I am always worried about finding a shop that will do honest trustworthy work and won’t try and screw me over. Going to a shop costs a lot of money. I know I’m spending a lot of money over what I could do myself I don’t have any experience, tools, or the place to do the work myself. I just spent $500 on brake pads that came from mavis and were making noise on rough roads and bumps. I know that’s insane but I went to the dealer. Noise is gone. How do brakes make noise like that? Made me worried I’d be wasting my money and the issue still being there. I wish more shops gave me the impression that I wasn’t wasting my time, getting raped etc.

[@ShadetreeAutomotiveLayton]

Hey thanks. Its a lot of work but we enjoy doing it. Keep asking questions and we will do our best to answer them!

[@18_rabbit]

literally NEVER use a dealership EVER unless u r dying and literally have no choice or whatnot. Their prices now are often 3X an indey shop, which can easily do brakes.

[@ericknoblauch9195]

Don't go to Firestone for brakes either. They install cheap Wagner pads that break down, and do not last for the duration of the warranty they give you. The brakes give you a lot of noise, and the pads tear up your rotors. It happened to me. The pads they install are not recommended for the rotors you have on the car.

[@deere3321]

I bought aftermarket warranty years ago and had a transmission problem. The mechanic said it was probably a valve body or valve issue. The insurance would only coverthe work done on the valve ONLY after the transmission was disassembled. All labor except for the time to replace the defective part wasn't covered. They have been out of business for a long time. Live and learn

[@SBC97281]

Thanks for a great and truthful video. Extended warranties are rarely good value. The margin on selling those warranties mostly provides for the high pressure sales tactics of the F&I guy at the dealership.

[@stephenjohn904]

thought real hard about warranty. had a tough time especially with a new car. in the end decided not to. the F and I guy even told me that you are taking a big risk and spat some repair costs at me to make me budge. still decided against it. tried to second guess myself after that and did a lot of reaserch but no firm conclusion about the downside this is the first video that mentions the downsides. thank you sir. I went by my gut instinct and i am finally proved right.

[@CipheredCrimes]

I surprisingly had an okay experience with a warranty purchase I made 6 years ago. The engine and transmission ended up having fractures on the block, and the transmission case. I had receipts of all work done on car. Long story short, I had a new long block and a new transmission from factory. I paid $1900 for my warranty. It was as if the car has 0 miles again.

[@calvinthompson8661]

The world needs a whole lot more people with your level of integrity !!!

[@rbnhd1144]

I agree with you, IMHO He is telling the absolute truth.

[@user-pj5ff6xw4x]

I don't trust nobody. Endurance is the best warranty you can get and use a dealership. Most Independent Shops don't have a loaner car and don't know how to communicate with warranty companies.

[@scottharper9645]

I had an after market warranty for my old Saturn station wagon. It saved me 3 times the cost of the warranty when I bought it. I also repaired it at the dealer. I didn’t have to pay for any diagnostic stuff. The repairs were done on time and took the average amount of time to do as anyone else bringing their car in.

[@baubowers2529]

I just had my 2016 ford explorer water pump covered by my aftermarket extended warranty, 2700 job covered. Bought from a large dealer here in Wa state, glad I bought it 4 years ago and they paid the diagnostic as well. My deductible was $50.

[@Support_Ad_Blocker]

$2700 for a water pump?????? Ford has a better idea (involves not using any KY)!!🤣

[@timothythompson4036]

I have heard bad things about aftermarket warranties. One guy I know had transmission problems on a Toyota Supra. The warranty company wanted pictures of an open transmission so they could see the problem. They dragged it out for two weeks then said the customer abused the transmission. They wouldn't pay the claim. Don't buy those for warranties.

[@miguelberrios19]

Thanks for posting, as I was about to purchase one of these.

[@timothythompson4036]

@@miguelberrios19 Don't waste your money on aftermarket warranties. You save nothing

[@daviduribe5634]

You do not bore anyone with all your relevant detail! Please go on and on! Your input is must-see must-hear! Thank You for bringing us your inside perspective! It will have much meaning when we all must be faced with the question if I purchase mew-car warranty or after-market warranty!

[@FluffyMI6]

I got an aftermarket warranty with my car. It was my first time buying from a low-credit dealership, they said the warranty is mandatory with the car purchase, more to protect the car in case they have to repossess it (due to mostly selling to people with low credit). It sounded like the warranty covered everything, so i agreeed and bought it. A month or so after buying it, the lower intake gasket starts leaking oil, about a quart every 1000 miles or so. Take it in for warranty work and they tell me its the lower intake gasket. Quoted over 1000 dollars for parts and labor. Little did i know, the warranty only covers mechanical parts (total engine failure/ transmission failure sorta thing), not gaskets. I passed on it and did it myself. About 2 days of work and very thorough research (youtube videos), i got the job done for under 100 dollars and I know it was done right. Havent had much, if any, oil loss for the last 2 oil changes. Lesson learned, I will never buy a car with an after-market warranty. They dont cover the parts that keep the engine from failing. Basically, if the engine/transmission fails, they have terms and conditions that make the warranty essentially useless because it was "your fault" for not fixing the problem before total failure. Its all a scam and covers nothing.

[@broderp]

I've never had these issues with an extended warranty. You might just get the bottom of the barrel companies at your doorstep. Every time I've felt with a warranty, it's been my deductible and that's it. I might wait a day or two for parts, but the shop has never had the issues you describe. Maybe it's because the dealer takes care of it and not a 3rd party garage?

[@cmdrdredd]

This does make a difference. They treat a dealer as “they know the car” and “Joe’s garage” as “what do they really know? They have to prove it” Also service advisors at dealers know how to talk around certain things in order to process warranty claims quickly. Even factory warranty is a pain but the right advisor can push it through by saying the right things.

[@GodfatherActua]

I take it to the same dealer that sold the warranty then it’s on them to deal with it because they made money on the sale of it and have to stand behind it. Has worked for me.

[@berwingroup]

Over the past 20 yrs, I’ve purchased 2 warranties. The first one was a complete nightmare similar to the experience you described in your video. However, the second time around, I bought a warranty from AAA. When I felt that a repair may be covered under the warranty, I took my car to a AAA approved shop. Needless to say, my experience was totally different and almost everything was covered. Of course, I was nickeled and dimmed on some ancillary parts.

[@drhoward5538]

This guy, and Matt from Matts Off Road Recovery are never seen in the same room together

[@aaronbritt2025]

One major thing to look for in an aftermarket warranty is "seals and gaskets". Some warranties exclude them. If it does, don't buy it. This exclusion means they will decline any leaks. Also, all aftermarket warranties want the part torn down to the failure. If you have a rod knock, they won't just listen to it and cover it. They make us tear down your engine and take pictures of the bad bearing. This means if they don't want to cover it, you're now on the hook for the cost to tear it down, even if you decide not to fix it. You also have to pay us to put it back together, unless you want a box of parts back.

[@guy3749]

I’m in Canada and I am sure they are the same here, your a mechanic lawyer dealing with the warranty company I learned a lot great video thank you brother.

[@stockpilethomas7900]

I just bought a used car from Toyota in Manitoba . I had a opinion for a extended warranty for 2000. I had time to check the better business bureau reports on it . They where not good. In brackets it said does not cover any heat damage . So if a piston breaks . They just say it's from heat damage.

[@paulpuretz1388]

Never buy any extended warranty on anything..100% of the time...take the money you saved and put in an imaginary piggy bank...when the repair comes fix it or buy a new one depending on the situation period ...they prey on poor people ..

[@MrSparks54]

My lifelong buddy here in Murray, Utah runs an auto repair shop. His advice is to set aside what you would pay for an aftermarket warranty every month in a savings account. After a year or two you'll have enough to cover most or all of a repair. Great advice in my opinion.

[@lss-jprep4980]

I purchased the extended warranty from Hyundai with a 0 ded for a 2017/Santa Fe. They’ve covered everything presented to date. I paid 2k for it and it’s probably saved me $6 to 8k so far. Would avoid aftermarket ones at all costs. Love the video!

[@gbrianjohnson]

I purchased a 2013 BMW 135I Cabriolet and when I bought the car a three year 30 thousand mile warranty was presented to me for about 4000 dollars. I was skeptical however after thinking about it I decised to buy the warranty for 4000 dollars given the car has the Turbo charged N55 Engine and it had 95,000 miles on the odometer. Long story short that warranty has saved me tons of money. I paid 4000 dollars and the car has has 11,000 in warranty work done on it. Just my own personal experience.

[@seanof30306]

This is a very good video. The one spot I feel you weren't entirely up-front about was what parts cost. There are two prices on parts ... list, and "jobber" (wholesale). If I walk into O'Reilly's and buy a part, I pay list. If a shop calls and has that same part sent over, they pay jobber. That jobber price is generally 20-30% below retail, and allows the shop to build in a fair margin on parts. If you're going over your bill and see you got charged 200.00 for a part that O'Reilly's (Autozone, NAPA, etc) lists for a hundred bucks, you got beat up pretty hard. The shop paid 70-80 bucks for it. A fair price is generally 20% over retail. Another important thing to know is, if you buy a used car, but it's still under factory warranty, you can usually buy the extended factory warranty for it. Not only that, you can usually buy that warranty from any dealer of that brand, not just the dealer that originally sold it, or is now selling it to you as a used car. You can do it on new cars, too. I was helping a friend buy a new Camaro in 2017. One of the places they were really trying to stick it to her was on the extended warranty. I found a Chevrolet dealer out West that sold extended factory warranties online. She paid less than half of what the dealer was trying to charge her here and there was never a problem with it. Many years ago I bought an aftermarket extended warranty on a new Jeep I'd bought. After the factory 3 year/36,000 mile warranty ran out, I tried using the extended warranty twice. Both claims were denied, even though they were clearly covered. The third time I tried to use it, the warranty company had gone out of business. Much as I like Vivica A Fox, I wouldn't touch an aftermarket warranty with a 10 foot pole.

[@jeffreymoorbeck2752]

I cannot imagine how you manage to stay afloat. Business is tough. Kudos to you for making a go of it.

[@ShadetreeAutomotiveLayton]

Thank you. We work hard 👍

[@thudthedestroyer515]

Thank you for sharing! This was one of the best productions I've seen as it SINGS of honesty. I wonder if a shop like yours would consider launching your own warranty system to cut these leeches out. You could start in the local areas then branch out as a function to the general proximity of your shop locations. You might also partner with TRUSTED shops and set some standard pricing down to avoid conflicts. There is an obvious market for these services and you may be able to solve many of the issues you talked about by expanding into that market. Just a thought from a random car owner!

[@JewelryEnthusiast]

Having spent 30+ years as a service manager, I had two labor rates, one for the customer that walks in the door and two, a higher rate reserved for aftermarket warranties. If they haggled me to much which happened rarely, I would send the customer down the road as I will not operate at a loss. There were times when long time customers were willing to pay the difference in addition to their deductible.

[@mph5896]

Warranty is expiring on my moms Honda CRV. I am pushing for a Honda powertrain extended warranty. Concerned about the head gasket issues the 1.5 turbo is having.

[@joem.7621]

If she didn’t change the oil every 5-7k I’d sell it now.

[@WHJr-p1g]

I had a Civic with the 1.5 turbo and had an oil dilution problem. I sold it 2 months before the warranty was up.

[@ShadetreeAutomotiveLayton]

kzbin.info/www/bejne/sGapnqiphrR3j9k Might be a good video to watch if you havent already.

[@18_rabbit]

@@joem.7621 um, yeah and more like 3500-6K i'd say, esp if like a tpical driver doing some or a lot of short in town trips!!!

[@Dryloch]

You can buy the Honda warranties online for a good discount from some large Honda dealers. They sell them in bulk and price them low. Curry Honda and Saccucci Honda are two of them I know of.

[@MrWaynesea]

Good info. We've encountered similar issues in the mechanical trades with home warranty companies. We send homeowners with inquiries involving home warranties to our competitors. We have sympathy for the homeowner, but we enjoy and appreciate our non-home warranty customers.

[@VintageEvolutionSkateboards]

WOW an honest mechanic, hard to find these days. But this is the truth we all need to see. Greed has gone rapid for years now and we are all paying for it. Thank you sir for doing your part to make this world better, even if our leaders won't..👍👍

[@trishkalogridis881]

Thank you so much for posting this……you just helped me make the decision I was trying to make about getting one …..I turned down the one from toyota on my new car it was over 7,000 dollars….i couldn’t wrap my head around that…then got kind of scared about not having it …..thank you again ….this has helped so much

[@justinlanglais9825]

Great video with lots of valuable info.... I'm a DIY mechanic and have never purchased ANY extended warranty on ANYTHING.... they are a ripoff. Have an emergency fund to handle unexpected repairs !!!

[@markschneider3915]

In some states, you can research the companies via the insurance authority of the state. Most states require companies to allow you to cancel the extended warranty, 30 days for a used vehicle, and 60 days for a new vehicle. Since they are taxable, they are negotiable, I am considering one for the first time, and I'm researching them before I even decide on what car I buy. It's a can of worms, supposedly there are third parties that offer extended warranties, getting the price beforehand allows some negotiation with the dealer.

[@davidmatthiesen]

We have had 5 different warranties with Route 66 through our credit union. They have never declined suggested work. It is a $0 deductible and covers diagnosis; however, they will not cover shop charges such as towels and consumable items, ext. I have never paid over $100 for these charges/ the total bill out the door. The shops I use say they are some of the best and do not have concerns about dealing with them. My last repair was a transmission issue that was repaired at the dealer and fully covered. My $.02

[@TheHonestAdvisor]

My experience is similar. I will say there are a few good ones out there that i have almost no issues. Fidelity, Zurich, Easy Care, CNA have usually been solid. Car Shield is the worst. Endurance, Rte 66, and Protective kinda stink. As the vehicle owner you MUST read your contract. Know what you bought

[@tjorg75]

I just bought a 2021 jeep cherokee 22,500 mi. (Private party)Basic warranty expired Local dealership sells Zurich. Are they good? (48/80,000>>$2500 60/100,000>>$3000) I drive less than 15k/yr Opinions

[@TheHonestAdvisor]

@@tjorg75 I've worked with them in the past with no issues. Solid company

[@davidofrior526]

I'm still a new shop owner and I just figured out that I need to be making at least a 50 percent profit margin otherwise my shop bills are coming out of my personal pocket. Was wondering why I wasn't making as much as I should have then I started going through the numbers. Doing favors for people and helping them out means that eventually you're paying for something that they're responsible for.

[@stevemalone2010]

You are so right, based on a personal experience. I had some success with a Small Claims Court claim.

[@SheLoveSports]

Excellent video! Not only about the warranty but how it effects the repair shop, as well.

[@williamphelan8779]

About half way through your video I was thinking "Why would this guy even accept those junk aftermarket plans". Great video !

[@chadfield376]

Good tips to know about warranties in how they affect a typical auto shop. For the vehicle I own, my biggest concern is the active fuel management on my Chevy 5.3L, if that goes stupid, I just need to make sure I have like $2k in savings ready to pay the repair outright vs dealing with a warranty company. I am believer that like the “Stealerships”, they will look for every opportunity to blame owner negligence vs just fix the defective part.

[@nottalackey3587]

I know 3 people who have Carshield. Two of the three were refused payment on claims.

[@lb9gta307]

Years ago, when I was a dealership mechanic, I prefered aftermarket warrenty jobs over manufacturer warrenty because we always got aftermarket to pay CP times. Also, if they denied pay they did so befor the job was done, unlike the manufacturer warrenty where you did the job and hoped to get paid whatever pocket change the manufacturer was willing to throw your way.

[@rcl8793]

Everyone told me not to get one but it was a Wrangler, so I did. Had I not, I would have been out the cost of an engine replacement and radiator. I did have to pay to replace the cat.

[@Jordan_B34]

I purchased an extended warranty on my wife’s 2016 Cruze with 50k miles. It was a couple thousand dollars, with a $250 deductible. Each year we have owned the vehicle it has been in the shop with around a 1,000 repair each time. Each time the vehicle has been repaired we paid the deductible and warranty covered the rest. The most recent time the shop called back and said the warranty company is giving them the runaround.

[@wilinstonthompson1352]

The key to aftermarket warranties is research research research and the companies fine print. I had a 750ix which purchased an aftermarket warranty for and before i got it home i took it to a dealer and had them do all the recommended maintenance ( per fine print in warranty contract) then after that only to either dealer or Certified mechanics ( keeping all receipts per fine print ) . Sooo when BOTH turbos failed as diagnosed by BMW dealer as such the warranty company had no choice but to replace both plus the turbo coolant lines at around 10k if i remember correctly. I promptly got rid of that POS after BMW lost a class action on its N64 engines ( all are straight trash) .

[@ChrisM-gv2st]

I once bought an aftermarket warranty from a Ford dealership. Several months later i took the car in to the same dealership for a repair. The service dept said they wouldnt honor.

[@pauljanssen7594]

My neighbor got scammed by car scam, add paid into to many many years of coverage with no claims; engine goes bad on vehicle car scan will not put in a new motor not even a rebuilt motor they put in a used junkyard motor. The airtime bill is so expensive they can't afford to fix your car correctly.

[@LesterFougere]

I hear that the salesman or dealer selling these will often make a quite handsome profit. If this is true, then it must be very enticing for them to sell these warranties. I'm doubtful in a lot of cases, the customer is informed of the downside of this purchase. Thank you. Great video,Lester

[@Intrepid175a]

The first aftermarket/extended warranty I ever bought was for a 1988 Chrysler Le Baron convertible. I came out smelling like a rose on that one. It wasn't a totally bad car, but I had more nit-picking problems with it and the warranty paid for most of them, so no problems. The next couple of cars I bought, I also paid for the extra warranty, and I either never used them or only needed them for minor repairs that didn't come close covering the cost of the warranty itself. Since then, the last one was on a 2001 Honda Odyssey, I haven't paid for any extra warranty coverage and you know, I wouldn't have used it if I had. So now, even if the engine or transmission on my current car blew up in my face right now, I'd still be ahead of the game fixing or replacing them because of all the money I've saved through the years NOT buying aftermarket/extended warranties.

[@peterl2017]

Depends on the vehicle. I had a customer with a GMC Acadia Denali, lots of problems with that vehicle from day one. For them the warranty paid itself and more easily. I had no issues doing the claims, however my experience ( thankfully), with these warranties is limited. Not doubting all that was said by any means. The limited experience that I had was fine.

[@AndreZA979]

Thanks, that validates my recent decision not to extended my warrantee with my dealer, which was not factory, but "dealer".

[@frankbroker726]

So far my MOPAR warranty has been awesome...New Screen,New ABS pump....but i miss my 1996 Intergra and 2000 Accord ...

[@RMarquez805]

Depends on the company and depends on the vehicle, I’d recommend u find out how much before ur policy is maxed out. I paid $4k for a 2012 Audi s5 needed a flywheel, transmission and motor mount and the policy covered $12,700 and everything else was out of pocket but can no longer use my policy. In this case it turned out to be worth it for me.

[@toddsilverman1244]

Mechanical insurance requires started to pick up speed in the late 80s.It's ALWAYS been a scam!! If you live anywhere near this shop , you would be stupid not to take your car there...... This is the poster child of an honest mechanic👍

[@thomasrobinson182]

I got a warranty from a Ford dealer. The company was Budco. Good warranty.

[@tomg809]

Also, as a consumer, you need to get in the middle between the repair shop/dealership when things aren’t moving along. Don’t sit back and let the ext warranty tell the repair facility what they want to do. Also (VERY IMPORTANT) - make sure your maintenance has been performed and is up to date. If not, it’s a big loophole for the warranty company.

[@EVH3730]

I'm an educated consumer and I agree with you completely. Most insurance companies exist to rip us off. If it is better for you. I suggest you stop working with those extended warranty companies. I would prefer taking my car to a shop that just focused their efforts (time and money) on repairing my vehicle properly and economically for both parties. Keep up the great, informative, posts. Thank you.

[@johnroberts3824]

The interesting thing about insurance companies is that when you actually try to use the product you've been paying for, they no longer want you as a customer.

[@corg78]

Great video, please make another video with more examples. It is great to know how this scammers aka warranties operate.

[@johnfarrar7448]

My ONLY gripe is when a shop spends $135.00 for an alternator or whatever and then charges me a markup on the part, thus costing me $200.00. I don't mind paying for the labor, but parts markup above retail has always been a scam. I am a former employeee of Robt Loud Ford in Pasadena, CA, so Im not just blowing smoke. Thanks.

[@djdev3077]

I will never buy an aftermarket warranty ever again,the 1st time they closed up without any notice,the 2nd time they fought the repair for 2 weeks,then finally approved the repair.

[@UberDude]

I bought 2 extended warranty during my lifetime and both times there were major issues with claims. Neither were ever paid and they were rude. After that, I never bought another one.

[@contemporaryprimitiveman3469]

I just bought a KIA hybrid, loaded with tech features and amazing electronics. I bought my ext warranty through KIA for $2k covers everything incl electronics 5y/100k and 10y/200k power train. Bought my first new car 50 years ago, never boat and ext warranty until now.

[@bwalker4194]

Good luck

[@robertbrost7777]

Like the movie Erin Brokovich, the insurance companies are in the business of "deny all claims!"

[@boostedmaniac]

I had a supposed Toyota extended warranty the Toyota dealership sold me. They told me it covered everything. When I went to take it another dealer (since I’m much closer) for something simple like the removable 2nd row seat wasn’t coming out, the dealer charged me for the diagnostic fee and fix which was just a cable misaligned. When I questioned the charge, they told me there were no parts to be replaced so nothing failed and no warranty paid out. Yeah I get it, dealers prob hate warranty work too. But you’d kind of expect a Toyota extended warranty to be a little better. Either that or the dealer was just lazy and didn’t want to deal with it.

[@bryantwhitis6446]

What I say about extending vehicle warranties. They help not too drain your budget. One should expect to pay some out of pocket expenses but not the total bill whereas you would have been on the hook it you didn't have the extended vehicle warranty. Solution keep an separate bank account designated for auto repairs expense..😯

[@senseisecurityschool9337]

If you want the peice of mind of knowing you won't be screwed when your car, your refrigerator, or your AC needs a major repair, here's a cool trick so you can have peice of mind without getting ripped off. You COULD spend $3,500 on a warranty that only covers the car, and nothing else. Instead, take that same $3,500 and put it in a savings account. Now you have that money to cover not only car repairs, but a new washing machine or a TV or toward a replacement car or WHATEVER you end up needing the money for. The savings account doesn't just cover some car repairs - you have that money available for whatever goes wrong, with anything.

[@markinsd5025P]

The GMMP warranty from Chevrolet is actually quite good. No issues with claims at all

[@margaretmcnamara2717]

I have a 2015 Nissan Altima in the Nissan dealer won't even accept the extended warranty from the Clark County Credit Union here in Nevada

[@Fishseaofcortez]

The dealer I worked at wouldn't even offer those aftermarket warranties anymore. Even when they do cover a repair, they tell the repair shop what they want to pay. They don't even want to pay the labor times published in the Motor manual.

[@Bavafa1]

Very useful information, thank you. Although, I really don't understand the mark up on the parts. If your cost is more than you charge for labor, then perhaps it is fair to adjust that not to mark up the part that I can go and buy myself for much cheaper and bring it to you.

[@jeffwelch7618]

Hey, I understand by the time you make your profit at the end of the year, Uncle Sam wants at least 45 to 50 percent of your profit. My wife and I operate a real estate business .Thanks for being there. Jeff

[@genericdude6551]

This is why I don't pay for extended warranties. It would be nice if someone else paid to fix or replace an engine or transmission but I can't count on that.

[@2fast2block]

When I bought new cars i always got the extended warranty. It always paid off that I had it. The cost could go absurd on electrical issues. Anyway, I don't doubt what you say and I always got the warranty from the dealer.

[@anthonykeel1058]

I work as a tech for a dealership, I feel as though we get screwed, they don’t pay for diag, they pay the bare minimum, sometimes below what warranty pays and they don’t fight to pay the techs the difference because they’re ashamed to ask the customer to pay the difference. They wonder why there’s a shortage in techs and that’s one of many reasons why I want to leave the industry

[@bluezhawg2104]

First off it is not a warranty it’s an extended service contract, warranties come from the manufacturer. Everything else you state is spot on. I always tell our clients that when someone else is paying for the repairs we have to follow their rules. Please be patient. We also get the customer on the hook for diagnostics. In working with them it is all in the verbiage and how the repair is presented to the claim agent. One wrong word and it’s over. Not fun.

[@sidharthchand8072]

Pre purchase inspection is always important

[@Drunkis1337]

I've had some companies be super easy to work with but I've also seen the nightmare when they don't cover the common failures for the vehicle. These company's seem to be hit or miss. Makes it difficult to advise some one when every time its different. Also I'm a tech not an advisor so when I know it has an aftermarket warranty I get it in and out because I know it will be awhile.

[@kirkboswell2575]

Heard of a warranty company that denied a claim for a flywheel replacement because the flywheel "wasn't part of the engine" (which was covered). Sorry, but the majority of the public DO consider the flywheel as part of the engine.

[@charlesbutterfield3464]

I recommend that the BMW owner sue the warranty company in court for both actual damages and punitive damages. I am a retired Real Estate Appraiser who also testifies as an expert witness in court. In an insurance case where I testified as an expert witness, the homeowner won both actual damages and punitive damages against his insurance company. I expect that the resultswill be similar where an aftermarket warranty company is involved.

[@thunderjumper7958]

The bmw story reminds me of Louis Rossmann when his power went out so he went and made a insurance claim for loss of business for the allotted time and was denied because of flooding.

[@imagseer]

Insurance is almost always a betting scam, and while one after-market warranty I had did pay for fans that had gone wrong, it didn't pay for diagnosing them. That case you mentioned where the turbo shot the engine is sneaky in the extreme... bordering fraud. Not in the least like wearing out brakes or clutches thru normal use. The manufacturer fitted the turbo and the assumption should be that it is a part that is fit for the purpose intended, not that it will grenade at random.

[@kennethbtrevias9567]

Never buy a Third Party aftermarket warranty- only but a warranty and/or service policy packages from the manufacturer of the vehicle (you can in most instances cancel it- if nothing was claimed on it within 30 days of purchase on the contract- remember you can always price comparison the manufacturer's extended service contract with any dealer in the U.S.A since the dealerships F&I Department wants revenue- since it reflects their numbers at the dealership.

[@MrBigjoe2400]

They are not "warranties" but service contracts. The companies work best when used through oem dealerships. The underwriters work with the oem manufacturers. There are different levels to each service contract as well that will have different coverages.

[@seandp85]

Absolutely correct, my aftermarket warranty save me $1,100 with jeep grand Cherokee water pump went out, nothing out of my pocket was paid.

[@claudiushedrington752]

A very nice & decent video/topic , I'll say it for you and everyone else, they , (the warranties) are not even worth the paper that it is written on , too much trouble for both , the customer & the shop !🧐

[@milemarkermike7234]

Here is another thing people don't know. I had a new engine put in my suburban at a present shop rate. And the warrantee on the engine 3 years 100,000 miles. Which was great. So two years from now say inflation goes up 30 percent. And that shops new shop rate also had to go up. And something major happened to that engine. The warranty only covers what the initial shop rate was. You have to pay for the difference in shop rate inflation price from what it was two years ago to todays prices. I know what you are talking about.

[@naf2579]

It's to bad so many bad companies are out there. I have had good experiences. You want "exclusionary" coverage and not "stated" component coverage. Also ask if they have "consequential coverage", that will cover you if that non covered part damages a covered part. Service contracts aren't perfect but READ the contract before signing. Make sure they pay the posted labor rate and MSRP on the parts. Gotta educate yourself.

[@JohnEvans-ct6mz]

I’ve been a tech for 23 years, extended warranties are the worst. I work for VW now and if we get any older 2.0T engines burning oil, they either cry neglect and won’t cover it, or they send out a junk yard engine with similar mileage. We tell them, this thing is going to burn oil too. They don’t care. Had one that I put in per their request, it burned just as much as the one I took out. We called them back, they were going to send ANOTHER used engine. Thank God one of their reps was a former VW/Audi tech and said no, this is going to keep happening, we need to replace the pistons. That was a very rare instance though. Generally, they are a total scam.

[@davidlampe4153]

Thank you for making this video. Insurance companies are selling the idea of we will help you when something happens. The reality is always the opposite of honorable behavior. I’m thinking that you and your company will be better off if you never have to process another warranty claim and just concentrate on helping your customers. The example of the BMW owner with the grenade by turbocharger I hope I will be smart enough to avoid, obviously that person wasn’t doing anything about the maintenance and the worst possible scenario for them and you ensued. I get the feeling that you were relating to an actual event and way you told your story made me sad that your work which has great value is being reduced to chasing around after the insurance company for hours just to get a beating and you have to do this day in day out. I’m going to bring some donuts when I bring my car into my mechanics shop not the fancy kind just the chocolate covered kind you get at the supermarket. I owe them that. They don’t have to worry I’m never buying a car warranty especially aftermarket car warranty! It’s not that they are bad people or that they don’t have the right to profit from their business it’s obviously their business model which as you stated they collect far more than they pay out.

[@flipicaneze]

I wonder why auto insurance companies don't offer, for a small per month premium, something similar to an extended warranty. It could be quite lucrative for them and less likely to be richards when it comes to claims.

[@Soulartist13]

What an eye opener!

[@r.weaver3769]

Remember, after market car warranties, health insurance, home owners insurance, car insurance all work under the same mentality, take in as much money as possible, pay out as little as possible, and deny every chance they get. It's why so many of them get sued. Car warranties in their inclusion/exclusion information will uphold warranty as long as you adhere to manufacture maintenance schedules, and keep receipts. They can also deny claims based on how the previous owner failed to keep up maintenance and you not possesing those records, it's buried in the fine print. I bought and canceled after reading the handbook. When asked why I was canceling, I stated I read the handbook.

[@jerrylundegaard2592]

Actually health insurance pays every day for many people. So does home owners and auto insurance. Extended service providers (they are not warrantees) are a deplorable class of one. Well maybe two if we consider MAGA.