Service plan recommendations needed

My older daughter paid for a very expensive service contract from the dealer when she bought a 2000 Alero last October. It cost her $1500 from a company
called Fidelity Warranty Services. She bought this thing without consulting old dad at the time.
My very recent research shows me that the contract language contains lots of weasel room and also that others believe that this company may not be the most honorable one to deal with based on their own miserable experiences, so I'm suggesting that she cancel out, and pursue another avenue.
Does anyone out there have any experience with these so called "extended warranties"? If so, what would be a reasonable price and what companies would you recommend?
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Silver wrote:

I guess you know that extended warranties are some of the most profitable things to sell within the auto business. When I was taking delivery on a new GM car, the financial guy made me the pitch about extended warranties. I declined. We did all of the other paperwork, and then an hour later we were finished. Then he made the last resort pitch for the same extended warranties, but this time he had dropped the price by 30+%. Further, I read through the weasel words, and they had just about every loophole at their disposal to jump through, so I declined again. When he started into the third pitch, I terminated the meeting.
---Bob Gross---
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Robertwgross wrote:

When I bought my TA, I dispensed with the extended warranty crap in one sentence: "Will I be covered if I install Nitrous?" Obviously, the answer was no, so I wasn't interested. I made it clear I fix all my own cars so the extended warranty wasn't necessary - most salesguys know dickall about mechanics, so if you sound like you know your stuff they won't question you.
(and I did put Nitrous on it.)
If it's a 4x4, ask if it covers lift kits and 35" tires or something equally outlandish. When they won't take "no" for an answer, make it known you plan on modifying the vehicle in some crazy manner and want to make sure that it would be covered.
Ray
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    Fidelity isn't that bad.... Working at a dealership I see these things save people money everyday.. All you have to do is take it to a dealer, tell them you think it may have an oil leak, and you have a service contract. Especially if its a low deductible one..
    Chances are that car will experience an intake leak, as well as some other things... I don't see why you won't be able to get $1500 worth of work out of the contract.
    They aren't for everyone, but I have seen them come in real handy on many occasions.
    The best contracts in my opinion are National warranty company, and GMPP or (General Motors Protection Plan). National covers just about everything (except normal wear items) with little or no questions asked.
Silver Surfer wrote:

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My experience shows that extended warranties are not a good buy. One would be better served placing the money and the interest you pay on its cost, in an interest bearing account and make any repairs over the deductible that would have been covered by an extended warranty from that account. However if you believe it may work for you, buy the one sold by the manufacture of your vehicle, WBMA. Most shops will not accept payment from the after market company, you need to pay the cost then seek reimbursement.
mike hunt
Silver Surfer wrote:

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My preference for my daughter would be the GM service plans based on trust and respect for the company, but for a used vehicle their plans must be bought at the same time the car is bought.
This wouldn't be a big issue if my little girl lived closer to me. She's in NC, while I'm in WV. She and I both need peace of mind in regard to her vehicle reliability. When she was home old dad was her extended warranty provider.
She doesn't have the cash to put in an interest bearing account as an alternative to buying an extended warranty. Her present warranty was financed along with the price of the vehicle.
Thanks to all of you for your input. It's much appreciated

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national warranty went bankrupt: http://consumeraffairs.com/news03/natl_warranty.html
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fuds wrote:

I don't know what happened, but they cover stuff all the time where I work.
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see: http://consumeraffairs.com/news03/natl_warranty.html
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