Episode-980- Steven Harris on Long Term Fuel Storage

“A Jaguar owner came into service for a rear differential failure. He purchased an extended warranty from another dealer that covered his car’s power-train (engine, transmission and rear differential), but did not include protection from leaking seals and gaskets. Unfortunately for the Jaguar, a broken rear differential seal allowed oil to leak out over several days eventually causing gears to seize from lack of lubrication. Since the cause of the differential failure was a broken gasket, the claim was denied.” John finished by saying; “This $2300 repair bill could have been avoided if our Jaguar owner had purchased a better auto extended warranty plan. Be sure to get “seals and gaskets” coverage for any warranty plan you purchase. If seals and gasket protection is not offered, maybe you should continue shopping until you find the right warranty company with the right plan for your vehicle. Doing so would have saved our Jaguar customer a lot of money and grief.”

A Truck Purchaser’s Experience

I’m now proud owner of a beautiful Chevrolet Silverado pickup truck. I bought it at my local Chevy dealership and was especially happy of the way I handled my negotiations. This time I had finally won the price battle. I had surely escaped the dealer’s hungry jaws for profit, right?

The Extended Warranty Sales Pitch

I was escorted down a long hallway and into the financing office where my salesperson sat me across the desk from the finance manager. The finance manager presented me with an auto extended warranty brochure and before I knew it, I was listening to a sales pitch on the benefits of extending warranty coverage on my Chevy truck.

It seems like every media source implies I’ll get ripped off when buying at a car dealership. So far my negotiations have gone well. This must be the time and place where it’s going to happen!

Extended Warranty Contracts May be Valuable

The finance manager’s extended warrantypresentation was informative and I was reminded how complex and expensive many of the automotive components can be to fix. I thought to myself: “If he offers this extended warranty plan to me at a fair price, I believe I’ll buy it”.

Brand “X” Aftermarket Extended Warranty Plans

I felt sticker shock at hearing the price of their extended warranty plan. Adding to my uneasiness was the realization that the warranty plan they offered was an aftermarket warranty company, a plan not backed by General Motors. The finance manager, George, added that the dealer’s warranty plan “was just as good as the factory plan”.  I felt bothered about that comment. I’ve always received great service from the General Motors Protection Plan and had been told how some aftermarket extended warranty companies had poor claims service.

The Genuine Factory GM Extended Warranty

I felt the pressure to buy right then. I hate that feeling. The tension between both of us in the room was so thick you could have cut it with a knife. I responded; “No thank-you, I’m not interested”. On that day, I avoided the additional profit my GM dealer was searching for.

Later I was happy to discover an online source to get the official GM Protection Plan at a discount price. There are a few selected and authorized division dealerships online who will sell you a genuine factory-backed extended warranty at deep discounts.

I visited and received great service. The warranty specialist answered all my questions and processed my purchase quickly and efficiently. In my search I discovered factory warranty outlets for Ford and Chrysler at: and .

Many do not know that they may purchase factory extended warranties online and at cut-rate pricing. Learn how to .

Owning a good automobile extended warranty from a reputable company can be an excellent experience.

If you love your car and want to be sure the affair continues for years to come, a used car extended warranty from a reputable company can make your ownership experience complete.

But how do you find a reputable auto warranty company? With so many options, plans, and prices, how can you know which choice is best for you?

To choose the right extended car warranty provider for your vehicle, make sure you have the answers to the following questions:

1) Does the used vehicle extended warranty company you are considering have credible insurance backing? If your contract is insured by an insurance company, this assurance will be clearly written in the car extended warranty policy. Be sure to read and verify the insurance backing. It’s also a good idea to check the company’s insurance rating. Be sure the rating is A+, A, or A-. If the rating is less than these, I’d recommend you look for another extended warranty company to do business with. You can research the here. AM Best is the leader in Insurance ratings Included are indicators for financial strength.

2) Will the auto warranties companies pay for your auto repair at the service facility of your choice with their corporate credit card? This is important, as most dealerships and repair facilities will not start the repair for auto warranty companies that want them to wait on payment. The warranty company should issue their own corporate credit card payment at the time of repair.

3) What will the date be when the extended warranty expires? Try to purchase at least 3 years and 36,000 miles of coverage if your vehicle has less than 80,000 miles on the odometer. If you have less than 50,000 miles, try to extend another 5 years and up to 100,000 miles on odometer.

4) How many miles will be on the odometer at expiration? Some plans have confusing terms and vehicle mileage end times. Be sure to write down your ending date and miles on your warranty paperwork.

5) How easy is it to cancel and receive my pro-rated refund? You may cancel your extended warranty at any time and receive a prorated refund? The best used car warranties will let you cancel the remainder of your warranty policy even if you have previously collected on a claim payment.

Consumer Reports rarely forgets to comment about auto extended warranties. ?

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And what does a “good reliability record” mean? What if you purchase a car with a “good reliability record” and still suffer costly repairs? It’s too late to buy the extended warranty then! Every automaker, no matter how reliable their vehicles, have fully staffed service departments working full time. Have you seen how busy your Honda and Toyota service departments are lately?

Later the article goes on to say that in a 2008 survey, 65% of those polled said they paid more than they received in return from their extended warranty purchase. Maybe Consumer Reports could have interviewed a few owners who received claims compensation far exceeding their plan purchase price. How do you think these folks feel about their extended warranty purchase?

My recommendation has always been the same when considering an extended warranty at time of vehicle purchase.

Instead of taking Consumer Report‘s two cent’s worth, answer for yourself the following questions;

1. Do unexpected auto expenses cause me great anxiety?
2. Could the cost of replacing an air conditioner or transmission strain my monthly budget?
3. Would I sleep better at night knowing major vehicle repairs are covered under warranty?
4. Can I afford the increase in my monthly auto loan payment?

Learn the two best ways to determine the .

Are you a candidate for an auto extended warranty? .

Written by: on May 25, 2011. Last revised by: December 26, 2013.