TO JIM AND ALL READERS

third party warranty company.

getting stuck in 4th gear at a stop light). Anyways I brought it in and they set it up for warranty work, and called me back to tell me it was not covered by the third party 3 year Power Train warranty!

records of oil changes at a profession shop, my warranty is void. I change my own oil to save money and because it is a no brainer, and I am punished! Crazy! I am still a bit confused as to what the HELL my engine oil even being changed at all, no matter by who, has anything to do with a transmission!? The warranty Cost me $2000 dollars, and the job is roughly a bit more than that! so now I am out my Warranty (they wont refund it because it has been more than 30 days since the purchase) and I am out the repair. so a broken tranny cost me nearly $5000 because of this STUPID warranty company. The company name was GLOBAL WARRANTY.

DO NOT BY AN EXTENDED WARRANTY FROM A THIRD PARTY! It is a nightmare. The ford warranty I had on it was GREAT! no hassles and loaner car without even asking, but not this with this third party warranty.

of ruthless if you ask me.

This is an interesting problem. If the warranty says you need to be able to *prove* normal maintenance was done, they usually want to see receipts for the work done. However, I recall that courts have ruled that if you can show receipts for the parts (oil, filter, etc.) bought at intervals that match maintenance schedules, that counts. But, who keeps these receipts? In your case, it depends on what the warranty actually says, *and* how well you can do at convincing people that the engine oil changes don't affect the tranny (in 68, the Chevy dealer I bought my Camaro from tried to deny a warranty claim for a mirror dropping off because I didn't have the oil changed there; first, I asked them to show me the oil passage to the mirror, and then I told them that that the next step would be for a JAG officer to ask the same question. They replaced the mirror.). Extended warranties need to be read very carefully. What the salesman says is specifically worthless; it's what the warranty says that will be followed. If the warranty requires proof of maintenance, that's what you'll need to provide. Sorry, but that's how I understand it.

Andy

The U.S. federal Magnuson-Moss Warranty Act prohibits warranty issuers from requiring you to use a certain "brands" for service, parts, etc as a condition to maintain warranty coverage. I'm not sure about professional vs. do-it-yourself. And of course this is not really a warranty but a service contract anyway. Your question is interesting and worth some research (I'm actually writing a feature story on warranty rights in the next few weeks and will check your case with my experts.) I really think this is something you should run by an attorney specializing in consumer law. You might check with your state attorney general's office, consumer protection department and possibility DMV repairers division. Or are you in Canada? Global looks like a Canadian company? They might be interested and/or give you some names of attorneys to contact.

From the perspective of what is "reasonable," disclaiming the warranty on the basis of engine oil changes seems unreasonable. Even if there is wording in the contract, it would seem to me that courts would not be inclined to uphold unreasonable provisions .... but you never know. There might even be some kind of provision in your state law to protect you. If I find out any more from my experts while this thread is still active, I'll post back. Did you check the contract? Can you post the pertinent wording? Did you buy this third party contract or was it provided as part of the sale. Was it through a Ford dealer or a used car shop? If it's a dealer, he may be able to muscle the company for you. Who did the warranty work? Did you say you don't have receipts for the oil changes you did yourself? Where are you?

You might consider filing a BBB complaint. This company is a BBB member. You might check this:

Assuming there are not other issues, I'd be really surprised if you would not prevail in this in a court or even with the threat of court. Of course, the service contract industry has a horrible reputation. Just the idea that they would try to get out of covering this on the basis of oil changes shows what they are like. Unless the contract is issued and backed by an automaker, it may not be worth much. You certainly have to read the fine print. But again, I certainly would not drop this if I were you.

You must keep us posted about how this goes.

I bought it through a used car dealer. The warranty company said he would be held liable if he admits to saying I was aloud to change my own oil, but he is not going to admit that. he isn't dumb...

Warranty work was not completed after inspection we moved to a cheaper mechanic once I found out it was my own pocket paying. I told them that I never kept the receipts for the oil filters and oil. they told me it was pointless to even keep them because they wouldn't accept that as a legitimate oil change.

I will post the exact wording on the contract when I get back to work tomorrow. I don't have the Contract with me right now. I am located in Ottawa, and I tried to go to the BBB website and file a complaint, but I can't. The website gives you a list of possible violations, and this type of violation is not on there. I tried to click on civil rights and it said they don't have a department for civil rights. I will try to call them about it. This company has had complaints before.

Thanks for the help. Talk to you soon,

Yes call the BBB and check with authorities. I don't know Canadian laws, but it's worth a shot. I still would consult with an attorney, though it sounds like you had an unauthorized shop do the repair, if I understand you correctly. I WOULD like to see the contract wording. I'm not a big fan of buying a car from a used car dealer, incidentally. Seems like you get the worst of both worlds.

Do you have small claims courts? here (in California) this would be a good case for small claims court. Easy, you don't need a lawyer, it doesn't cost anything except a small court charge and you can sue for up to $5,000.

Sadly, they can get away with this but you'd have to check the fine print on the signed warranty contract..... Most of the (very few) contracts I have read, usually have some statement regarding service records....

I can only suggest calling one of those "free advice" lawyers to see if there's a chance you might get some restitution but be wary... no sense throwing good money after bad.

a post in html, ewwwww

just a question while on this subject.

i purchased extended warranty from dealer when i bought car new-it is not Ford, but i had one minor claim ($200) and they paid Ok.

I now have 60000 miles & maintenance schedule says change transmission fluid. However, my mechanic, whom I really trust, says the transmission fluid is really clean and does not need to be changed.

So my question-should I follow the maintence schedule and change the transmission fluid? Or trust my mechanic who says don't bother at this mileage because the fluid looks fine?

the transmission fluid was changed at 30k interval. I am a pretty easy driver.

I purchased my 99 explorer about a year ago. The warranty on it is through a third party warranty company.

As you already know my tranny went and I brought it in to get serviced. (it was getting stuck in 4th gear at a stop light). Anyways I brought it in and they set it up for warranty work, and called me back to tell me it was not covered by the third party 3 year Power Train warranty!

I asked as to why this was, and they told me that because I don't have service records of oil changes at a profession shop, my warranty is void. I change my own oil to save money and because it is a no brainer, and I am punished! Crazy! I am still a bit confused as to what the HELL my engine oil even being changed at all, no matter by who, has anything to do with a transmission!? The warranty Cost me $2000 dollars, and the job is roughly a bit more than that! so now I am out my Warranty (they wont refund it because it has been more than 30 days since the purchase) and I am out the repair. so a broken tranny cost me nearly $5000 because of this STUPID warranty company. The company name was GLOBAL WARRANTY.

Just a note to all of you readers out there planning on buying a used vehicle, DO NOT BY AN EXTENDED WARRANTY FROM A THIRD PARTY! It is a nightmare. The ford warranty I had on it was GREAT! no hassles and loaner car without even asking, but not this with this third party warranty.

Jim, do you know if they can even get away with something like that? It is kind of ruthless if you ask me.

BE WARNED!

I was offered a 3rd party warranty on a used car a few years back, and the price seemed reasonable. But a close read of what was covered and under what conditions immediately showed it to be a scam. In fact, I think it was the same "Global" company! The deal was the warranty only covered original manufacturing defects, not anything that came about from wear and tear. If your engine lasted past the OEM warranty, it was evidence that there were no original defects, in fact! So what ultimately was covered? Only those items that might have been covered in a manufacturers recall. Waste of money!

=Vic= Bear Gap, PA

but i had one minor claim ($200) and they paid Ok.

However, my mechanic, whom I really trust, says the transmission fluid is really clean and does not need to be changed.

Will your mechanic cover the tranny if it fails? Do you want the warranty to cover it instead? Answer these questiuons, and you'll have your answer to your first question. Why pay for a warranty if you don't want to keep it in force?

Will he provide you with a document/receipt stating he changed the fluid?