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?
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.
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.
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
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:
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
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.
Silver Surfer wrote:
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
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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