My buddy called me one day and told me he found a bargain on a Ford pick up with a 6.0 diesel in it. I told him to stay away the engine was junk. He bought the truck because they gave him a warranty on the engine for an extra $2000. The first time it broke and he took it to the shop his claim was denied because when he bought it it had an aftermarket lift kit. So he went back to the dealer and complained that they sold him a junk warranty. They apologized and said they didn't know about that, they gave him his money back for the warranty. The problem was he was stuck with the truck with a junk motor. I have always believed the dealership was lying and knew the warranty was useless but used that as a way to get him to buy the truck. After all they didn't buy the truck back he was stuck with that, they only gave him his money back on the warranty.
@nolongeramused8135
2 жыл бұрын
For $2000 or so he could have acquired a replacement engine from a salvage yard and had it installed.
@abrahamlincoln9758
2 жыл бұрын
"Whoever coined the phrase 'let the buyer beware' was probably bleeding from the a****e." -George Carlin
@charlebrownga
2 жыл бұрын
The early 6.0 had tons of problems. There good trucks if you know enough about them keep them serviced before they become a problem.
@ThorOtheBIG
2 жыл бұрын
I am shocked that a dealership didnt know something or that they may have deceived your friend. Dealerships are well known to be trusted, helpful, and always look out for the consumer! Probably why the offered the warranty...
@atgn-0088
2 жыл бұрын
The six point NO strikes again!
@vilefly
2 жыл бұрын
As a certified master mechanic, when dealing with one of these warranty company claims adjusters, I do not let them take pictures of any part not related to the failed part in question. Many will try to take extraneous pictures all around the car, as if they were to declare the customer negligent on maintenance. This is not what they said they were checking out, so I don't let that happen. I also expect to be paid by the insurance company for my time showing the problem to the adjuster. They can get their own garage if they don't like it. Insuring a limited life product like a car is a stupid move not worthy of my respect. That's like insuring a house on an eroding cliff. They deserve to lose money on it due to a lack of common sense involved making that decision, then trying to wriggle out of the contract later on. I was firmly in favor of not bailing out car companies, who messed up all by themselves, btw. Make a crappy product, lose customers, lose profits, lose business. More computers than a space shuttle, for fuck's sake. Confucius say: better to press clothes than press luck.
@harriettedaisy2233
2 жыл бұрын
I’ll never have a complaint with a third party warranty service. I’ll never have a third party warranty.
@ryantheodore7919
2 жыл бұрын
When purchasing a 2020 forester last year, the sales manager tried to sell their extended warranty. It was 1400, when we said no it became 1200, then 1000, then 800, then 600. We still didn't get it.
@POOKIE5592
2 жыл бұрын
I probably would buy the warranty for $600.
@ryantheodore7919
2 жыл бұрын
@@POOKIE5592 Car was Subaru certified pre-owned. Still had 2 year factory bumper 2 bumper. Plus the Subaru certified pre-owned also comes with 10 year / 100k power train warranty from subaru. They were trying to sell us the dealer warranty.
@HermannTheGreat
2 жыл бұрын
@@ryantheodore7919 For $600 probably worth it considering the headgasket you'll need in 5 years.
@bc1969214
2 жыл бұрын
One thing if you really wanted this is to find out the warranty company and coverage (platinum, etc.) and call other dealers to see what they'd charge.
@bc1969214
2 жыл бұрын
@@HermannTheGreat headgasket is a commonly excluded item in the fine print on these contracts.
@randymoore7571
2 жыл бұрын
Everyone who purchased a "service contract" or "extended warranty"needs to watch this! Thank you Steve!
@curtislow255
2 жыл бұрын
When I bought my most recent car, the finance manager had already figured and drawn up a monthly bill $65 extra than I expected, for a 60 month loan, to pay for their warranty service. I told him to keep his warranty and he gave me a look like I'd just kicked his puppy. Had to sign a bunch of papers saying "DECLINE". It was definitely a hard-sell that I'm sure they get 80% of their customers with, and I certainly didn't appreciate it.
@KiwiCatherineJemma
2 жыл бұрын
You may not have kicked that guy's ACTUAL puppy, but I reckon that was his monthly "whore" allowance you deprived him of !
@nodsib
2 жыл бұрын
Holy crap that would be an expensive warranty, you could easily eat an engine replacement for that money lol. And they financed it over 60 months and I bet it only covered like 24 lol
@curtislow255
2 жыл бұрын
@@nodsib I told the guy "it's an LS motor, those things are practically bulletproof and I'll be voiding the warranty anyways" He started talking about power windows and whatnot, stopped him again with the ol "If I didn't think all that was good, I wouldn't be buying the car"
@selfdo
2 жыл бұрын
I'd have got up and WALKED. A honest dealership doesn't have to coerce "add ons" like that, especially with trickery when the deal is closed.
@curtislow255
2 жыл бұрын
@@selfdo it was exactly the car I was looking for and the only one for sale within 300 miles (actually traveled 100 miles to get it). But yeah if it had just been a regular car purchase I would have bailed.
@Mpg-gh5fq
2 жыл бұрын
I once had one of those warranties. It did not cover my drive belt tensioner when I had to replace it. It did not cover an air conditioning switch, either. By the time I had to replace the transaxle, the warranty had expired, so I ended up getting nothing out of it. I had decided never to buy one of those warranties again before I saw this video, and the video solidifies my opinion.
@anime_cyko
Жыл бұрын
Did you get a phone call offering the warranty?
@Mpg-gh5fq
Жыл бұрын
@@anime_cyko No. They offered it to me at the dealership while we were going through the paperwork to purchase and finance the car.
@lovejumanji5
7 ай бұрын
@@Mpg-gh5fq. I tried to file a claim, power window motor ……they said one piece in the motor wasn’t broken, a piece that was built in , didNOT come seperately and couldn’t be taken off ….. pep boys went along with the nonsense. Called company and got a sob story on how the company was about to go bankrupt and she might loose her job ……when I was young…..ah the ignorance of youth.
@byteme9718
7 ай бұрын
@@Mpg-gh5fq Perhaps next time you buy insurance take a grown up along to help you read the terms and conditions.
@Mpg-gh5fq
7 ай бұрын
@@byteme9718 I'm more than capable of reading the terms and conditions myself. They did not offer an exhaustive list of every single part in the car and whether or not the part was covered. That is often the case with warranties -- the language is deliberately vague to the point that it's practically meaningless.
@ubercdr1313
2 жыл бұрын
We got bit by this a few years ago. Bought a used F-250 from a GM dealership. A couple years later the rear leaf spring U-bolt broke. Took it to a suspension shop. They called the warranty company and they had no record of us being a customer. I just thought the dealership was incompetent. But this explains what was really going on.
@jamesduncan6729
2 жыл бұрын
Two things can be true at the same time. They really are incompetent, and also corrupt! What a fantastic combo for a car dealer 😏
@joshd79
7 ай бұрын
Same can happen with CPO. Beware.
@rjhikes6248
2 жыл бұрын
I once bought a Honda service contract with a new car and I was pretty happy. When I went back to purchase another car I was told that they didn’t sell the Honda plan anymore and only sold a third party plan that required me to pull coupons out of a book. I walked away as it was an obvious bad deal.
@monkeyoperator1360
2 жыл бұрын
The honda dealer by me did that only through honda dealer contract and it values a 30$ cabin air filter at 300$
@mikemortensen4973
2 жыл бұрын
@@monkeyoperator1360 A cabin air filter costs less than $30 at a parts store and they are easy to replace yourself. Don't need a mechanic to do that.
@monkeyoperator1360
2 жыл бұрын
@@mikemortensen4973 i know, which is why i thought it was hilarious that they listed it as a 300$ value
@Rock-Bottem1982
2 жыл бұрын
@@monkeyoperator1360 Im a service advisor at a Honda Dealership, and cabin filters at my dealership cost $59.99 installed. I highly doubt your claim here, it has to be a scam by that particular service department(which I highly doubt also), I think you are lying, or have stretched this story just to make a comment here
@monkeyoperator1360
2 жыл бұрын
@@Rock-Bottem1982 i have the proof somewhere, in my TBs of storage or on the warranty paperwork they gave me
@byronwatkins2565
2 жыл бұрын
A manufacturer warranty encourages the manufacturer to deliver only quality products. Third party maintenance contracts serve no purpose other than to enrich insurance companies. If you want to make insurance companies richer, then go right ahead and buy those "warranties." Personally, I prefer to donate to the Institute for Justice.
@jamesodell3064
2 жыл бұрын
They avoid being insurance companies because they would then have to follow laws that apply to insurance companies and fall under the jurisdiction of state insurance commissioners.
@alansewell7810
2 жыл бұрын
This is exactly correct. I managed the warranty systems for a company that made carpets. Because the carpets were warrantied for five years, they tested the bejeezus out of them for months before they put them on the market. They had automated machines that stomped on the carpets. They brought cats and dogs in to pee on them. The hung them out in the sun all day. They soaked them in water. They poured wine, beer, ketchup, mayonnaise, and mustard on them to make sure it would wash out. Before those carpets went on the market, they had the hell beat out of them. Whenever a warranty claim was filed, they had inspectors go out and look at it . When the claim was verified they installed a new carpet at company expense. My job was to take the serial number on the carpet, backtrack it through the production process, which may have been up to five years ago, and see if I could determine if anything went wrong with that production batch, and hopefully suggest improvements to keep it from happening again. Because the warranty system instigated a process of continuous improvements, the quality of the carpets got better and better over time.
@scottr2706
2 жыл бұрын
Those service contracts (AKA third party warrantees) do not enrich insurance companies. They are not insurance and they are not issued by insurance companies. The only people they make rich are the third party service contract companies
@byronwatkins2565
2 жыл бұрын
@@scottr2706 Distinguish them if you wish. They carefully assess the rate that client claims will accrue and demand premiums sufficiently more than that amount as to assure profit without needing to build anything -- just like insurance companies do. You are equally advised to invest heavily on Blackjack in Vegas.
@tonyesposito9426
7 ай бұрын
Many years ago I had a sixty nine cattyville convertible. Mechanic said it needed a fly wheel or several hundred dollars. Just being out of the military I did not have that much money. The mechanic told me he could get a Chevy. Fly wheel , and it would be almost half . I did it work fine. Found out that could be done sometimes because they're the same g m company. Good luck out there.
@nicholas_scott
2 жыл бұрын
20 years ago, I was snookered into getting a 3rd party warranty. Seemed like a fantastic deal until I tried to use it. I found out it had a large deductible AND and a fairly low cap- meaning it would be nearly impossible to even get my moneys worth. Live and learn
@HappyHoboRecovery
2 жыл бұрын
I started out my sales career selling @ an indy used car lot, where the incentives to include these warranties were phenomenal. Keep in mind We handled both the sale+ F&I aspects of the transaction so I could negotiable away the "front end" profits and kill it on the "back end" since most lenders will finance 100% retail cost of an extended warranty... Unfortunately, the proprietor of the dealership did what most do... Rather than pay the warranty company, He'd pocket the money and roll the dice on whether the auto needed future service.
@HappyHoboRecovery
2 жыл бұрын
@Space Ghost no it's now defunct. It was called AUTOMART in Portland Maine
@HappyHoboRecovery
2 жыл бұрын
@Space Ghost I think Our wires got crossed. Automart in Maine was never in a movie (despite the Hollywood esque characters I worked with). It was a local enterprise of approx. 8 locations that sold high mileage luxury cars at "wholesale prices". I left for GM after 5yrs learning the biz from it's most dirty players
@mikemortensen4973
2 жыл бұрын
@Space Ghost I think he meant "indy" as in independent, not Indianapolis.
@joshuagibson2520
2 жыл бұрын
Still probably a good racket on his end. Essentially he was the insurance company. As reliable as cars are, he probably made out well. I'm assuming he actually paid out for a handful of repairs here and there.
@bearsden28
2 жыл бұрын
These "warranty" "companies" are always hounding my elderly father to buy their products. I would never trust them to pay out but what really angers me is how they try and make it look like he already has some type of warranty and it is expiring. Preying on people is just so wrong, especially our elderly. One would think as a society we would be able to come up with a way to stop these things. Thank you Steve for another great video.
@Rock-Bottem1982
2 жыл бұрын
You're thinking of something totally different over what Steve is actually talking about in this video
@johnamaral1786
2 жыл бұрын
@@Rock-Bottem1982 But with similar hazards.
@paigeb1318
2 жыл бұрын
@@Rock-Bottem1982 Ohhh, it's different? I was also thinking of the robocallers who push extended warranties. It's a running joke around here, but I was horrified to find my mom signed up for one after a solicitor called her. She seems happy with her "product", though I'd like to see the written contract.
@bearsden28
2 жыл бұрын
@@Rock-Bottem1982 Auto warranty sold by the dealer or auto warranty sold be telemarketing or auto warranty sold be direct mail - same company, different lines of attack. The video does primarily cover the dealer's shady dealings; however, these warranties are often shady deals themselves. My point was, regardless of whom the predator is , dealer or warranty co., predatory tactics just need to be stopped.
@bearsden28
2 жыл бұрын
I think that Steve did also have a really good point about 2nd hand warranties - if you do get one be sure the dealer processes it right away - contact the warranty company to be sure it gets done. I would think there might be "some" of these 2nd party companies that are legit in their dealings and having a warranty on a product as risky as an vehicle could really make a person feel more comfortable owning it. As always, and something I didn't use to do before Steve, is read the contract entirely before signing! For that I am grateful.
@johnkowalkowski4269
2 жыл бұрын
I guess I did ok on one of these. I bought a used 2005 Ford Explorer, 4.0 V6, 5R55 automatic transmission, XLT 4x4, 135,000 miles. The used car dealer pushed a 3 year 36,000 mile warranty for $3400 to get a lower percentage on the financing. I bit...long story short...the warranty paid for a full transmission rebuild, fuel tank guage sending unit, and one CV shaft. I got a littlemore out than I paid for it. I consider myself lucky after hearing this episode.
@mikemiller659
2 жыл бұрын
Good work!
@toddeisgruber1947
7 ай бұрын
They still lied to you. They can’t drop the interest rate because you have a warranty. They inflated that rate before the warranty was ever discussed. Always get a full breakdown of how the numbers work before you sign anything including the finance breakdown. If you don’t get you to buy the warranty for $1400, no problem! They’ve got it already set at a higher interest rate so they will get it over the course of your finance term!
@THENARRATIVTestimonies
5 ай бұрын
What was the name of the company?
@oldsguy354
2 жыл бұрын
I worked at a high volume GM dealership many moons ago. My job was to verify the veracity and coordinate warranty repair claims that we submitted to GM for reimbursement. GM was very generous about paying claims that were a little (and sometimes a lot) over time or mileage originally stipulated. If a car or truck was over mileage or time, but we thought it was within reason, we could (and did regularly) ask for, and receive exceptions as a goodwill gesture to maintain customer satisfaction. However, GM was very strict about what sorts of parts and labor they would pay for to correct a customer complaint. As example, I customer would complain about growling noise coming from the driveline. If our mechanic diagnosed the problem as a bad transmission and replaced the transmission only to discover that the growling noise was coming from the differential. The differential would be repaired as needed but there was absolutely no way that GM would pay for a transmission AND a differential to correct one complaint unless we could prove to them that BOTH components had failed simultaneously and that it was GMs responsibility. Transmissions and differentials plus associated labor are very expensive and the likelihood of both failing simultaneously is extremely rare. If the car or truck had been in a bad accident, sure both could be damaged, but that's not GMs responsibility. The zone office would send out a rep to investigate what really happened. It was almost always a misdiagnosis, and the extra expenses involved was not GMs responsibility, and they would not pay. The dealership would generally have to eat the cost of the unneeded repair. There are published job codes and labor costs for nearly every possible repair for every vehicle. If the job code didn't match the complaint, like if a customer complained about a windshield leak and we submitted a claim for a transmission it would be denied. If we submitted a claim for a failed water pump, it could include coolant and labor, but if the belt(s) and hoses were included, we had to justify that their failure was directly caused by the water pump leak, and they almost never were. Sorry for the long story, and keep in mind that I think GM was incredibly generous over what they would pay for, but they were not in the business of paying for unnecessary parts and labor. I suspect that some of the aftermarket warranty providers had/have similar policies in place and would deny claims from a shop misdiagnosis, and that too may be the cause of extended warranty claim denial. A poorly diagnosed problem from an unethical shop is not the responsibility of the warranty company, but the shop may very well tell you that the warranty company is the problem in order to keep from admitting a mistake and absorbing the associated costs.
@m1kcan1
Жыл бұрын
GM quality, especially transmissions, are much worse since their 2005 bankruptcy as the accountants took over the company. I buy Toyota or Honda, best quality on the market.
@chromolitho
7 ай бұрын
nice insight
@kenyattaclay7666
2 жыл бұрын
Honestly the best thing you can do is set aside the money you would spend to buy one of these third party warranties in a separate account or get a card from whatever mechanic shop you go to that has 0% interest over a certain time. I mostly use that separate account when I take my car in for maintenance, oil change & such.
@CashMoneyReckadz
8 ай бұрын
Depends on the car. Works out just fine for Toyotas, Hondas or GMs but if they’re high end and especially European I’d rather battle it out over a claim vs hope I have enough money to repair a major mechanical malfunction. The one headlight on my mom’s BMW is $5000 to replace meanwhile it would be 1/4 on a normal vehicle.
@jerryfacts9749
2 жыл бұрын
I know of someone who bought a new car. When it came to the first oil change he decided he wanted to save a little of the cost and go to a private service place to have the oil changed. The service person did not properly tighten the oil filter. He also did not do the recommended inspections. The filter loosened up and the oil started to leak out. The engine seized. When the car was towed back to the dealer they told him the engine was not covered because an authorized dealer did not change the oil and filter. They told him the reason for the failure. He was told to have the car towed back to the place that did the oil change. They refused to pay. They told the guy to go after the manufacture of the filter. The manufacture sent him back to the garage that did the work. He had to sue the garage that changed the oil. He never got back all the costs. He lost a lot with this one!
@javaskull88
2 жыл бұрын
An RV dealer sold my sister an extended warranty on her rig. She needed to file a claim a couple years later, at which point she learned the dealer had never remitted payment to the warranty company for the contract. A lot of stalling and finger pointing ensued. She asked for my help, so I drafted a letter to the dealer with a cc to the state’s Attorney General stating the facts and asking that the matter be resolved. She got very fast service after that; we assume the dealer absolutely did not want to be investigated by the state.
@MikeBarbarossa
7 ай бұрын
RV warranties. Got got a brand new RV and when I got it home one speaker was bad. I called and they said I needed to drop the RV off for 3 weeks, (which would turn to 6 weeks) for a lousy speaker. The gas and time just to drive to and from the dealer 2 times (80 miles away) I could buy the same speakers for $40 a set. I had to pull teeth to get them to just order the new speaker and I'll bring the bad one back. Lucky I had business close by because it wasn't even worth the gas and time to go do that
@ejb992
2 жыл бұрын
STORY TIME!!! lol See I bought a used truck at a dealer that had an oil pressure issue right after I bought it with cash. No warranty. Called up the sales guy and he was cool said bring it in and we will figure it out. Turns out the bearings were shot causing the pressure issue. He asked what i wanted to do then offered another similar truck on the lot as a trade(good start a Ô_Ô) and I'm like that truck was EXACTLY what I was looking for(legit was).... he turns around and says give me a bit ill call ya back. The call back a day later is "I found an engine that looks solid out of a junk yard(I actually use the same yard myself ironically for parts) and we are going to throw it in to get you on your way no charge." What's even more interesting is when I picked it up they also put a new radiator in, also no charge, because as he put it "it had a pin hole leak and it was already out anyway" Õ_Õ.... I have bought 2 cars from this dealer and will buy future ones because of this. Not all dealers/ salesmen are the devil lol
@mikemiller659
2 жыл бұрын
Thats great !
@1sinister80
2 жыл бұрын
You found him. The only one in existence.
@RichRotorhead
2 жыл бұрын
@@1sinister80 😂😁😂
@lethargicmotorsport2025
2 жыл бұрын
I know a used car dealer that does that kinda thing often. he says every time he fixes a car that he’s not actually obligated to, that customer will tell everyone he knows. One of the biggest used car dealers in our area .
@mikes9759
7 ай бұрын
@@lethargicmotorsport2025 That's amazing these days!! But he's right!! I knew some guys like that, but it was a few decades ago!! What state is he in?
@garysgarage.2841
2 жыл бұрын
I worked for a used truck dealer that did everything Steve just described. I found out after my wife started working in the office and she was taking care of billing and all that stuff and she quit after 2 months cuz she didn't want to get caught up in all the BS.
@SALEEN961
2 жыл бұрын
A similar thing happened to my father when he bought a Ford extended warranty. The selling dealer never filed the paperwork, and Ford said my father had no extended warranty. Luckily he insisted on paying for the warranty in full with a separate check so that he could prove he bought it.
@facetiouslyinsolent8313
2 жыл бұрын
I'm a retired auto broker. There is absolutely no such thing as a "bumper to bumper" warranty. No one is paying for things like brakes, brake pads, light bulbs, normal wear and tear, oil changes, clutches, tires, tire rotations and the list goes on. If someone tells you all of that is covered they are lying to your face. There are dealerships that offer free oil changes for life from them so they can sell you things you don't need later or over charge for work, they always get their money back or they wouldn't be in business. As an example A client of mine was offered under carriage protection for $1,200. I was able to get it done for him for $90, product plus labor. Use your head and don't let them take you for a ride.
@SeanBZA
2 жыл бұрын
BMW offers it on new vehicles, where for the first 3 years you only pay for fuel, top up oil and tyres, the rest, aside from accident damage, is covered. Of course you are paying this in the price, and they are amortising it over a 5 year period, so after year three, when you get out of the warranty and motorplan, you either pay at BMW dealer price for service, or will buy the 2 year top up plan, which is only a little cheaper. They know they have you for those 3 years, paying interst on the services before you need them, and they also know the vehicle will not fail before then from history, and any accident damage they will bill you for. Scrape the belly pan, new one, at your cost, dent from a trolley noted and then your excess for insurance will have this charged under "betterment" if you claim.
@knurlgnar24
2 жыл бұрын
That isn't what bumper to bumper means obviously. If a customer thinks wear items are included they're just idiots. Does it include gasoline too?
@SeanBZA
2 жыл бұрын
@@knurlgnar24 No, basically you pay for all services for the first 3 years up front, and they cover all warranty work if needed.
@clatonblade2211
2 жыл бұрын
i have the free oil for life and plan to use it, iv all ready got 5 oil changes out of them 5 more and i break even. if they recommend other stuff ill just say ill do that somewhere else later...
@dannydaw59
2 жыл бұрын
I've always been told up front that wear and tear items are not included in the extended warranty.
@Jillousa
7 ай бұрын
I bought my car from a dealer and it included a short warranty for used cars. I was a few miles and a few days outside of warranty and they totally took care of me! This dealer had a great reputation for taking care of people. I'm so glad my friend recommended them to me.
@wsward58
2 жыл бұрын
I remember sitting in the finance manager's office reading the finance contract (mostly for prepayment penalties) and he said I was the first one to actually do that, which shocked the hell out of me!
@BuzzLOLOL
2 жыл бұрын
They tried to hit me with a prepayment penalty when I sold a house but I had Pres. Carter's Truth in Lending Statement which didn't show one, so I didn't have to pay.
@numbers0580
2 жыл бұрын
Great! Now, I'm gonna have to call up my girlfriend's son. About a year ago, he had bought a used truck from a dealership, despite me warning him they seemed shadier than normal. He needed a truck for work in construction, and at the end of negotiations they hand him the contract for the payment plan, which he forwards to his mother and me (a very eager mathematician). I come to find the monthly payment doesn't line up with the principal, interest rate, and length of either payment plan option. I found the principal amount that does line up was $2400 more than what they'd reported on the paperwork. Effectively trying to steal $2400 from him plus interest even after the negotiations. When I told him this, he took that info to the salesman, who claimed it was an extended warranty to cover anything that happens to the truck. I advised him to no longer trust that salesman, but he bought the truck anyway, extended warranty and all. I'm guessing this dealership might also be in the habit of filing these forms late and out of sequence, as well.
@jimwhitehead1532
2 жыл бұрын
You might try filing in small claims court for $2400, since you were NOT given any warranty back then, so its bogus. Just tell the judge your story.
@marcvivori1561
2 жыл бұрын
He can always cancel the Warranty and they have to refund it. It will go to the loan company and reduce the principle but he can go to the loan company and tell them what happened and a reputable lender will charge 100% of the Warranty back to the dealer reducing his principle even more. Warranty plus tax.
@phoenixh87
2 жыл бұрын
Buying used cars is like navigating a minefield of scams, from warranties to lease agreements which aren't needed at all, to outrageously undervaluing trade ins, to cash payment levies, poor quality paint protection... the list goes on ad nauseum. I was glad I was there to help my sister buy her car otherwise they would have had her by the short and curlies. Love the videos BTW, I live in the UK so I like to hear how Michigan does things!
@charleshines1553
2 жыл бұрын
Undervaluing trade-ins happens a lot. I traded my 2006 Jetta in a couple years ago with 150,000 miles. I looked on the website of that salesman a couple days later and saw it being sold for $2600. They would only give me $500 on the trade and made it $700. The car had no visible rust or other defects. No chips or cracks in the windows, everything still fully functional no tears in the interior to at all. I have changed the transmission fluid a couple times and it has shifted good the whole time I had it. It was never in an accident and was always garage kept and thus in good condition for a car its age.
@m1kcan1
Жыл бұрын
Do yourself a favor and only look at Toyota or Honda when buying a used car. You’ll pay more but will thank yourself in the long run.
@mvm3897
2 жыл бұрын
Going throught this right now with my 2017 Kia Soul with 56k miles on it. Bought the car used, Certified Pre Owend with a 10year 1000k mile CPO warranty. Engine blew almost 4 years to the date of purchase. Found out that the dealership never filed my CPO warranty. I called the warranty company and they had no record of my car. I called the dealership and more than 4 years after purchase they finally filed the CPO warranty. Now the dealership tells me they've filed claims every which way amd they have all been denied. I called the CPO warranty company to ask why my claim was denied and the dealrship never filed a claim. Its all a scam. I have hired a lawyer for the $6500 in repairs as well as lost wages, car payments made while they jerk me around, laweyer fees and inconvenience.
@VictorMTaveras
7 ай бұрын
They got me. About 10 years ago I was sold one with a used car. Supposed to cover all engine and transmission. It had a head gasket leak but the "warranty" had a head gasket exclusion.
@bigjay1970
7 ай бұрын
🤔🙄🤯
@walmartdog1142
2 жыл бұрын
A local funeral home was selling burial insurance, but just sticking the paper in a drawer. When he was found out, he did some time. Now he is working for an automobile dealership.
@ostlandr
2 жыл бұрын
Expect to see campaign signs with his name on them any day now.
@rhyoliteaquacade
6 ай бұрын
Yeah no kidding. When my Dad passed away in hospice, I immediately called the funeral home connected to his prepaid cremation. I gave the information on the contract and the funeral director immediately dismissed the notion that we had a contract. So I looked in Dads file folder and noticed that the woman who sold the contract had sent my folks a Christmas card. I called the funeral director back and said do you know Ms. So and So? He changed his tune very quickly. I think these contracts are sold with expectation that 15 - 20 years later no one will remember they existed and they can just tell the family to pound sand.
@bobp5356
2 жыл бұрын
Steve, this is a phenomenal video. I have purchased a couple of these warranties and now I feel like an absolute fool. I never actually needed to use one, but I will not even consider one in the future. Thanks so much for your great work.
@phobos258
2 жыл бұрын
Last time I went to buy a car they offered me the extended warranty at $135 a month on top of my car payment. When I politely told them to piss off, his counter-offer was $17 a month. It took everything I had not to laugh in his face at the ridiculousness of the two offers and if we were able to find a car anywhere else I would have walked out of that dealership.
@mrlt1151
2 жыл бұрын
Had a similar experience. I was told that I didn’t qualify for a 0% financing offer. 4% was the best that they can do. I tell the finance salesman that the 0% was the only reason I was interested, no thanks. Start walking out and he offers me 2%, then 1%. I told him to keep the car. They called me the next day and miraculously I qualified for the 0%. They were going to effectively raise the price of the car $5,400.
@Seasniffer69
2 жыл бұрын
@@mrlt1151 this! I bought my truck in 2020 and they wouldn't budge. 3k over MSRP on a used truck. I came in with my OWN financing already. I sat down, drove the truck, got to the papers we sign on the prices and they want you to whip it on there like it's a napkin with no words. It was close to closing, they wouldn't budge on the price. I said I'm already pre approved with financing, this things a year old and used. I'm not going upside down in this. Still wouldn't budge. I pulled 5,000 cash out of my envelope and set it on the table. They wouldn't budge off the price. I pulled out another 5,000 envelope and they offered to take off all the admin fees AND drop off $1000. Mind you this was a Ford truck AT a Chevy dealership. The best they wanted to do was maybe drop $1500 off the top. (They wanted 46k and the truck was 44k msrp brand new.) I got up and walked out. Said this was a waste of time. Nobody paid MSRP for this truck when it was new, covid didn't even exist when this truck sold, it probably sold for 38-39k new. 5 days later that dealer called me up and left a message saying the store owner wants to make a deal on the pickup. Unfortunately I bought it lol I got what I wanted. 36k out the door. They got 10k cash upfront and my bank took the note. I think the finance manager wanted to push it since it was close to closing and see if I was impatient and weak at deal making. They definitely blinked first.
@mrlt1151
2 жыл бұрын
@@Seasniffer69 They are likely paying more for the truck these days. I had 2 cars for a while and decided to sell my Camaro recently. Went to Carmax to get an idea on a price and they offered me $2,500 more than I paid used in February of 2020. I decided to take it. They then offered me 10k less than I paid new for my 2017 truck. I was flabbergasted. I almost let them have it too. They turned around and advertised the Camaro for more than its sticker price new. Car had 17k miles but had been in a MAJOR $20k in damage accident. Repaired well, drove fine. It dropped off their site in days.
@Seasniffer69
2 жыл бұрын
@@mrlt1151 it was actually repod off the air base in San Antonio and sold at auction where the Chevy dealership bought it and had it shipped here. CarMax is a little diff though on their prices because they're warranty is actually top notch, or it used to be anyways. Always told myself if I'm buying a used luxury car I'm going there.
@Bdamazyn
2 жыл бұрын
@@mrlt1151 Thanks for your story. I bought a used pickup at a Chevy dealership and the finance manager quoted me a rate of 6%. I said no, too high. He told me those were the bank's terms and I could take it and leave it so I got up and started walking out of the office. He called me back in and got on the phone with the bank. Said he couldn't close a deal because the interest rate was too high. After about 4 or 5 minutes on the phone he was able to get interest rate down two points. So I bought the pickup. I want to feel bad for people who sign on interest rates at 10, 12 or even 15%. But the truth is, they did it to themselves. Sad.
@Jack.Waters
2 жыл бұрын
This video is one of the reasons I retired at age 29 from ever working at a car dealership ever again. I was making fantastic money to. Gave it all up. The Greed was eating me alive. We bought Service Contacts for $225 and sold at minimum $1200. Sometimes up to $2500. The more the car was sold under invoice the higher the interest rate and Service Contract cost. When ever as car dealer is willing to sell a car under invoice. Even showing you that invoice. Watch out for those Add-ons. They usually add $1000 to make over up for it. Like the guy that walks up and demands 10% off parts cause he is such a good customer. So they/we go into system. Mark up the price 3x instead of 2x then to show how nice we are Discount it 12%. Perception of a Discount. I never looked back and learned how Not to behave.
@ostlandr
2 жыл бұрын
Had a salesperson at a dealer slip up once and straight up tell me the bigger the discount they offered on the new vehicle, the less they would give me on my trade. LOL!
@TheRoadWarrior
2 жыл бұрын
Yup. Learned my lesson the hard way on some of those Service contracts. Dealership refused warranty. I told them finance told me it was covered. So next day I went in, picked out a car, acted like I was going to buy it. Set my phone down in the finance office recording the lies. When I was told it was bumper to bumper I got up, went to the service manager and played it for him. A little threat of going to the news too but I got my car fixed.
@mematoseven8709
2 жыл бұрын
Brilliant!!
@TheRoadWarrior
2 жыл бұрын
@Space Ghost nope. 1 party consent. Kansas
@bjackman16502
2 жыл бұрын
@Space Ghost Even in most two party consent States, just leave the door open - that often negates the expectation of privacy.
@knurlgnar24
2 жыл бұрын
That was totally illegal and you could have been prosecuted in court with an assured victory by the dealership. Glad it worked for you though.
@TheRoadWarrior
2 жыл бұрын
@@knurlgnar24 How was it illegal? Where I live only one party involved in a conversation needs to be aware it is being recorded.
@traceyevans2757
2 жыл бұрын
I bought a warranty when I bought my wife’s car for something like $2000. We had a $8000 issue that was covered by the warranty, and we are extremely happy we did. My father had a similar story. My father IN LAW worked at a dealer and always bought them. When he didn’t use them, he called and got a refund. They’re definitely interesting concepts.
@whitehorse1961
7 ай бұрын
A while back I brought new Dodge Ram with extended bumper to bumper FACTORY warranty to 100k. At 98k took car to independent shop so they can look it over and make a list of things that potentially needed to be fixed. Like seals that were starting to leak etc. Service writer looked at it and said that they probably won’t cover most items on the list since non of the items are actually broken parts but they did submit it to warranty. I was amazed when they called me back to say that all the concerns were approved for repairs and the warranty will pick up almost 6k worth after 100 dollar deductible. Still have this truck, almost 300k miles on it now.
@NoWay-xu1ie
2 жыл бұрын
We purchased a new 2019 Ford Escape and wanted a extended warranty. When we got in finance office it was a after market warranty. We was told the Ford warranty cost 3 times more. I started calling around and found out I could get the Ford ESP plan for less than what we paid . So I went back to dealer and talked to to dealer finance manager. After I explained what I was told he didn't have a problem with refunding the cost of the warranty. But could not match the cost of the price I received from other dealers for the Ford factory warranty. I waited till are factory warranty was about to expire and we was going to keep the car then purchased the Ford ESP plan 7 yr 100k mile $1400 . Also the dealership tried to add on $500 for a security system that was never talked about. That got removed before we signed any papers. Actually we should have tore up the papers and walked out.
@arthurrodesiler3109
7 ай бұрын
The factory 7 year starts when you bought it. So you really only get 4 years after the first 3 years. You can by that warranty from Ford by just calling them. It would have been cheaper when you bought the new vehicle at that time rather than waiting for the orginal warranty is about the expire. You need one on that stupid Ford factor automatic ford clutch. Which most dealer can't fix right anyway. You need so many tools to set that up and paitence most techs can't fix it right with the time they pay for that job.
@TheOzthewiz
7 ай бұрын
@@arthurrodesiler3109 The "ESCAPE" never had the "dual clutch" transmission! The 2012-2018 "FOCUS" had the DCT. Regardless, the hydraulic automatic used in the ESCAPE was still problematic! You should have STAYED AWAY from ANY Escape!
@GeneralChangFromDanang
2 жыл бұрын
I would like to add, if a dealership adds a warranty into your final price and you don't catch it before paying, you can still cancel it through the warranty company and get a refund.
@rafaelm.2056
2 жыл бұрын
I bought an extended warranty for a new Ford only one time and it was the best decision since the car started falling apart after 36,000 miles and the factory warranty expired. The experience wasn't without drama. The warranty company tried to deny claims and a lot of time was spent on twisting their arm to pay a claim. Ever since then I have declined the extended warranty because it's a scam. I'd still be ahead if I had to take a hit on a major repair because I literally saved thousands of dollars over the last 30 years by not buying the warranty.
@hhholsteiners
2 жыл бұрын
2003 f350?
@rafaelm.2056
2 жыл бұрын
@@hhholsteiners 1996 Ford Probe. I paid $800 for the warranty. They paid out over $8,000 in repairs. 3 ECUs, 2 catalytic converters, window regulator, transmission throw out bearing, engine sensors, etc. The warranty company went insolvent and the new company took over and tried to tell me they don't cover anything electrical. Not according to my extended service contact that I had to wave in there face.
@VikingVic76
2 жыл бұрын
Lesson here, don't buy a Ford.
@hhholsteiners
2 жыл бұрын
@@VikingVic76 depends on the year make model
@JoeSnuffie
2 жыл бұрын
There's a used car dealer in my state that offers extended warranties and I've gotten them three times. All have been honored by the manufacturer dealer (Toyota, VW, Hyundai) with no questions asked. I've gotten a seat warmer, AC compressor, dash buttons, steering wheel buttons, emergency brake position sensor, ECU. Unfortunately they wouldn't replace a cup holder part in my Toyota, but otherwise I'm happy. I'm the type of person to push warranties to the limit.
@erin19030
7 ай бұрын
In the early part of my career in electronics I took an entry level job as a Color TV service Tech. One of my assignments was selling extended warranties on new TV sets. Personally I did not believe in warranty service deals, once I saw how differently demand service customers were treated VS contract covered customers. Our shop was covered by a Union Contract and selling was not part of our job. I have always believed if the product is any good it won’t need any service for several years. When it does need service the work will be minimal and affordable. My own personal work is covered that way today.
@Doomster9
2 жыл бұрын
Steve, I was a master technician that went into the warranty field to be a claims rep for mechanical claims. I spent about 3-4 years behind the curtain and can answer any burning questions you may have about how things are done. From claims, denials, exclusions, etc. I can give a decent amount of info if you'd like to create a video series on this subject.
@jeffreysantos9070
2 жыл бұрын
Start your own KZitem channel. You can help alot of people.
@dorothyhoard5247
2 жыл бұрын
It's very simple. They never pay.
@Doomster9
2 жыл бұрын
@@dorothyhoard5247 Believe it or not, they will pay as long as it's a covered failure. Some have crazy exclusions, but they'll all pay out if it falls within their guidelines. To say they never pay is not true.
@beaversareinsane726
7 ай бұрын
I got an extended warranty on my vehicle (2010 camry) back in 2014 and have been very happy with it. Around 75k miles all 4 struts were leaking, replaced no issue. Around 185k both CV boots were torn and throwing grease. One they replaced just the boot, but the other the dealer thought it was better to replace the whole axle. A few other small repairs too, but i more than made my money back on it. But, I keep my cars longer than most people because its the only way you get your money's worth out of them. A daily driver is never going to go up in value, but eventually it does more or less bottom out so long as it runs decent. Especially a Toyota, Honda, etc.
@derf_the_mule1405
2 жыл бұрын
I bought an extended warranty (service contract) I got through my credit union on a 2007 Ranger with 3.0L engine (the junk engine). I made about 4 claims total on that contract and made money on it. The repairs I was able to get exceeded what I paid for the contract by about 3x. Of course, the last one took a mechanic friend of mine going through the vehicle very carefully and making every repair he possible could. That took about 3 weeks because the valve covers were not available. (Ford put plastic valve covers on those Rangers and they failed by 2017. The new covers were aluminum.) The next time I went to my credit union they switched companies to one that covers nothing and refuses to pay anyway. The credit union has become member unfriendly in the extreme like Wells Fargo (from whom they acquired many employees). The extended warranty from the dealer for my 2016 Honda is nearly useless and the dealer will not tell me what is covered.
@Pooneil1984
2 жыл бұрын
I had one of these third party extended coverage plans that was purchased with my car for what seemed like a reasonable amount. The dealer promised it was almost identical to the manufactures warranty. If it had been as he claimed, it would have been a reasonable price for insurance on a vehicle I was planning on keeping for a long while. When I had a claim for a non-operable window it was denied as the contract only covered things that wouldn't actually break. In this case it was the rods for the window were covered but not the plastics connectors that were designed to fail first rather than break the glass. Letters to the state insurance board and the Attorney General consumer fraud group, with a CC to the company, resulted in a call from the warranty company suggesting the dealer might make an goodwill allowance and fix my car at their own expense. I never bought one again. But have used the letter campaign to get relief from deceptive practices a few other times.
@hhholsteiners
2 жыл бұрын
Which state? Some are better than others ;).
@Pooneil1984
2 жыл бұрын
@@hhholsteiners I think it was the letters I wrote alone rather than any action by the state that made the difference. It probably was just less of a hassle to buy me off than defend their contract. Writing the AG tends to indicate the customer need to be taken seriously. After the repair, I wrote letters to the insurance board and AG stating my problem has been resolved.
@rodneymiddleton9624
2 жыл бұрын
I repair vehicles and I stopped dealing with those warranty companies due to the ridiculous requests the impose on the repair facilities to try to get out of paying the claims. One screwed me over and that's when I said, "No More!". If anyone has warranties, I send them to the dealership so they can argue with them. I don't have the time nor energy. Thanks Steve!
@wesleygordon9413
2 жыл бұрын
We had 2 guys running one of those here in Missouri. Just drained money out for their extravagant lifestyles. Worked for a while.
@bryandevries7210
2 жыл бұрын
I had a great experience multiple times with a company I used on my current truck.
@alanschlesinger2899
7 ай бұрын
Great information about what goes on between the dealerships and the "warranty" companies. One of the ways people get duped into buying these extended service plans is that the word, "warranty" is used, though seemingly not as much now. People would automatically assume it's like an extension of the initial factory warranty that they get with the new car, where if something goes wrong it's almost automatically fixed and covered. But in fact these extended plans work like health insurance, with bean counters determining if something is covered and if so, how much. Your coverage under this extended "warranty" may not be 100 percent or even a significant percentage of the cost, even if they say they will cover the job with no caveats such as claiming user lack of maintenance or any of the other things they come up with to deny coverage. One such warranty that I knew of required a $2,000 up front payment to purchase the "warranty". Well, the car owner had a problem come up that the mechanic said would be an 10 hour job and a $1,000 cost. Well, while the "warranty" company didn't deny coverage, the bean counters said that the job was only a 2-hour job, despite said bean counters probably not knowing the slightest about how a car even works! So, after the $100 deductible was subtracted, the company only paid $100! The car owner still had to shell out $900 for that repair job! So after this job, he was out $2,900! ($2000 for the "warranty", and $900 for the repair!) If he hadn't purchased the "warranty", he would only be out $1,000! I calculated that the owner would have to have 14, (yes, 14!), $1,000 repair jobs in order to even break even with the cost of the extended "warranty"! And this assumes the company would pay each time! My advice as it's always been, is to NEVER BUY an extended "warranty" for any car, new or used! And it doesn't matter if the "warranty" is being offered by the dealership or directly from the third party. Instead, take that money you would have paid for the "warranty" with and put it into a separate account to be used for repairs. That way, you know the repair will be covered and the only one who decides that is the person you see when you look in the mirror! Thanks Steve for sending us all the great info!
@sue2611
2 жыл бұрын
I never NEVER buy extended warranties on ANYTHING. They are a ripoff, and I'm likely to forget that I bought the blasted thing.
@robertheinkel6225
2 жыл бұрын
My selling dealer in FL, included an extended warranty when I bought my Odyssey. 11 years later the vehicle quit moving, while on vacation. The dealer in TN, replaced the tranny, under the warranty. Upon my return to FL, three days later, it quit again. Turns out it wasn’t a tranny at all, but a front axle.
@fuckjoebiden1435
2 жыл бұрын
I've been burned by one of these warranty companies. A month after purchase I needed a brake job, the caliper seized, fried the pads and warped the rotor. Took it to a shop, they called me the next day and let me know the warranty covers the caliper and labor but not the pads n rotors that were damaged by the failed caliper, all I had to pay was the $50 deductible and $250 for the pads n rotors. I did the brake job myself, the caliper was only $35, pads were $20, the rotors were $60 each.
@jeffzekas
2 жыл бұрын
Bought a brand new Mazda, bought the extended warranty, but the freeze plug came out and destroyed the head, they refused to honor the warranty, saying, it was a cooling system related problem, and therefore not covered under the warranty. Really regretted that we didn’t buy the Toyota instead of the Mazda.
@stevemorris270
2 жыл бұрын
Better yet: 1) Don't buy third party warranties; 2) Don't buy cars that are so unreliable that you think the warranty will "save you".
@mikemiller659
2 жыл бұрын
Whats that company I see on TV selling extended warranties? BBB rating is F.
@ostrich67
2 жыл бұрын
What car is that? They're all terrible.
@jordanfrary3876
2 жыл бұрын
@@ostrich67 yup, I work for a LARGE used car dealer and I've seen it all. Multiple 15-18 Toyotas with dead infotainment systems, BMW's of all years leaking oil from everywhere, 13-18 ford escapes and focuses with transmissions failing, Mercedes with air suspension failures. Lincoln mkzs with ac distributor motors blowing. The list goes on. Best to do tons of research, and learn how to do all very basic maintenance yourself, so the car doesnt experience much neglect and won't develop further problems as a result
@emranhossain893
2 жыл бұрын
Exactly. I only buy Toyota, Honda and Mazda. I went through many cars ( upgrade or change) but never had to fix anything other than oil change, brake pad and tires.
@MrSonicAdvance
2 жыл бұрын
Bingo! When you buy a warranty, you are saying "I bet $100s that this vehicle will break down during the warranty period." Well why would you buy a vehicle you don't trust?
@davidwright640
2 жыл бұрын
I worked for a computer repair store, and we tried working with some of the third-party warranty companies. It did not take long to discover they were not people we could work with.
@prischm5462
2 жыл бұрын
I bought a warranty on a used car years ago and it covered axels (and a lot of other things). The axels failed and I called the warranty company. They sent and inspector out and he said the cause was that the boots ruptured and leaked out the lube. The axels were covered but not the boots where not, so they paid nothing. Never, ever pay money to a third party warranty company. The know what parts of a car fail and why. Their contracts do not cover the why. They are despicable crooks.
@rodgersrcaviation2785
2 жыл бұрын
As an automotive service tech of 23yrs and an independent show owner for seven I tell my customers when inquiring about purchase of an extended warranty. I strongly advise them to start a extra savings account with the money they would spend on the warranty!! As a general rule if they have done so they have the funds available for there repairs and then some. It’s work fantastic for the few that have done so
@cougarbait37
2 жыл бұрын
I am watching this now. It's appalling the things the factory and external warranty systems are doing to customers and the techs involved in this. I used to be a factory trained tech for a big 3 company. The warranty companies almost automatically decline the repair. Leaving the customer without a vehicle, the techs with dead vehicles in stalls taking up space. The techs have to jump through hoops to deal with adjusters etc. I personally lost a couple of jobs due to refusal of service to warranty procedures. It's a complete mess, industry wide! I heard you mention the infamous dry clutch junk. The labor times have been slashed for the techs almost 10 fold. I no longer work on vehicles due to the corporate mess involved. Look into the lack of techs, industry wide. It's not due to 19, but bad practices by the industry. Btw I enjoy the knowledge I've gained from your videos.
@publicguy1664
2 жыл бұрын
I bought a car from CarMax in Fl in 2014, still have the car thanks to their extended warranty. I don't know if it was in house or not, but it paid for itself, it was an extra 3K or something, but, I had several repairs for various issues, a cam shaft issue, a wheel bearing, a few other things, and finally, the transmission, and 8K$ repair, no out-of-pocket costs.
@nicholasvinen
2 жыл бұрын
Sounds like you pulled a Doug DeMuro.
@jasonmajere2165
2 жыл бұрын
Yea Doug got a Range Rover. No way would I ever buy a Range Rover without a warranty. Old boss got a rover, I asked if he knew where to get it repaired. And it took everything I had not to laugh in his face, later I heard he had a lot of trouble with it…
@pcnorton
2 жыл бұрын
Bought Two expensive cars to repair from CarMax. No problems with warranty and paid for itself on the first car. We will see on the second.
@littlestinker9716
2 жыл бұрын
Third-party auto warranties have always been snake oil. Dealers love selling them because of huge profit margins compared to $5 fabric protection and pinstripes.
@tony_25or6to4
2 жыл бұрын
You're gonna want that TruCoat
@Rock-Bottem1982
2 жыл бұрын
Im a service advisor at a Honda Dealer, the different extended warranties we sell are amazing, they arnt "snake oil". Now, I have dealt with a lot of shitty aftermarket warranty companies that "by here pay here" dealers sell, and yes, those are terrible warranty companies. Moral of the story, not ALL extended warranties are bad
@tjnewman1576
2 жыл бұрын
@@Rock-Bottem1982 So which ones are good?
@StevenTurner-vf3cw
4 ай бұрын
When I bought a used Chrysler from Glendale years ago, the saleman tried very hard to convince me to buy an aftermarket warranty (whose headquarters were offshore) instead of a Chrysler extended service plan. Instead, I purchased a Chryseler factory zero deductible maximimum care warranty and subsequently used it to replace a transmission, water pump and other items. Although it was more expensive than the warranty Glendale tried to sell me, the warranty paid for itelf many times over. Ironically, the dealer later posted notices that they would not honor those aftermarket warranties--that they had tried to sell me--anymore. I am glad I stuck to a manufacturer's warranty.
@LouT1501
2 жыл бұрын
Years ago, a friend worked as a salesman at Sears, selling electronic equipment, stereos, etc. There was a lot of pressure (from getting fired...) to sell the same type of service contracts along with the merchandise they sold. He didn't work there very long as that attitude bothered him.
@jasonmajere2165
2 жыл бұрын
One of the many things to sunk the titanic that was sears.
@rileyfriedman6596
7 ай бұрын
I had a warranty on my 07 F150 with the company you talked about in your previous video. I had the transmission go out, and was eventually able to get it covered. They wouldn't pick up the phone, wouldn't get in touch, and wouldn't answer the shops calls. It took just over a month to get the claim paid and the truck running. They paid in the end, but definitely left some hoops to jump through
@mjmeans7983
2 жыл бұрын
Lol... A simple clause that exempts so much... "All fluids and parts that contain carbon or corundum are a maintenance item and therefore are not covered." The dealer will say it means they don't cover oil changes because oils are hydrocarbons. But all steel and plastics contain carbon and all aluminum exposed to air automatically creates a passivation layer of aluminum oxide (corundum), functionally exempting the almost entire vehicle.
@nicholasvinen
2 жыл бұрын
"any parts of the car made from atoms are not covered"
@Garth2011
2 жыл бұрын
The best warranty is NO extended warranty. Life has its risks, just do your homework prior to a car purchase and disregard all of the transactional hub bub from salesmen...focus on THE CAR and its track record. Most of our new vehicles today are not made with the quality they used to. Maybe consider keeping what you have and just accept the repair bills that come up as a car payment. Lots of folks today are keeping what they have to avoid the costs of todays vehicles and the electrical nightmares they will have in short time, recalls, computer issues, gadget issues and so forth.
@ostlandr
2 жыл бұрын
Agreed. I will run my '07 Accord until the average monthly repair cost is higher than a car payment. Seriously, boring though it may be, it's long since paid for and the ownership cost per mile is tiny. (Well, it was until the cost of fuel went up to 21 cents a mile.) I'd love a stripped-down Ford F-150, but not going to shell out $40k and wait a year for it. Seriously., in some rural areas you can buy a fixer-upper home for that. Still thinking I should have bitten the bullet and gotten the repairs done on my '07 Subaru Forester- loved that little beast- but the whole rear driveline was shot from the transmission back. I didn't want to dip that far into our savings right then.
@JodyBruchon
2 жыл бұрын
If you read the contract for all these extended warranties that you pay extra for, you'll often find a clause (which I call a "get out of jail free" clause) that puts all of the control with them. Something like "claims are accepted at the sole discretion of company management; all decisions by management are final" but usually less clearly worded. In other words, you probably didn't actually read the contract and it includes a legal agreement between you and the company that lets the company blanket deny all claims and leaves you with zero recourse. Take it to court and you'll be arguing with your signed agreement. You can argue contract of adhesion, and maybe you'll win that way, but that's a hard path compared to "they agreed to pay for this in the contract and here's my evidence."
@bc1969214
2 жыл бұрын
the thing is you can't take it to court since they have also buried an arbitration agreement in there.
@michaelcrisp2239
2 жыл бұрын
Thank you very much. We are starting the search for a vehicle ,so this is good information.
@earhornjones
2 жыл бұрын
This was similar to the gimmick that was used to sell fabric/leather protectors in the furniture industry, when I sold furniture. The WhateverGuard warranty was often fantastic, promising to replace our entire living room set, for example, if you got a stain on your loveseat that wouldn't come out, and a replacement for just that piece wasn't available, and I saw them do just that on a few occasions. The thing was that most people expected the actual product to work at preventing stains, which it sometimes did. When it didn't, customers almost never filed a claim. They just got mad about the bad protectant, and forgot about it. In most cases, the fabric protectant was actually a pretty good deal, IF you intended to use the warranty. If not, you'd be much better off buying a can of fabric protector spray at the hardware store.
@kainhall
2 жыл бұрын
It's called "slippage"..... might be an honest deal..... but you need 50% to not make a claim to make money
@bobsherman3407
7 ай бұрын
The fabric protectant depended upon which warehouseman applied it, and with the level of diligence. Some chose to skimp on the product. You are right though, I would buy Scotchguard at Home Depot and do it myself.
@it1988a
7 ай бұрын
Warranties can only be issued by the vehicle manufacturer. Everything else are called third party service agreements.
@AcidFlash123
2 жыл бұрын
It's really quite simple, anything a dealership salesperson tells you is a lie. Anything any commission salesperson tells you is a lie (and even most non-commission salespeople because of performance expectations). So, in a nutshell, don't believe anyone who is trying to sell you something and do your due diligence and find out what they are lying about. If not, then it's all on you.
@E.J.Crunkleton
2 жыл бұрын
Sad state of affairs.
@redman1829
Ай бұрын
I currently work for a large extended warranty company. When you say the contract must be read you are absolutely correct. Now I’m not sure what other companies do but the one I work for hires certified technicians. The reason for this is we have to review the claims in detail. When an engine has sludge even though the contract does exclude it we have to inspect for what actually is the caused the failure. So what we do is communicate with the shop requesting them to continue diagnosing to the point of failure. For example spun bearings. I have covered engines covered in sludge except Kia’s I’ll tell you why in a sec. Because the pick up screen wasn’t clogged by the sludge therefore the cause of failure was the oil pump itself or the bearing just gave out which happens on Kia’s to the point they now have a factory warranty extension for that specific failure. When it comes to sludge on Kia’s they have us adjudicated their branded contracts and they instruct us when sludge is present no matter what we have to deny it. This is Kia themselves instructing this on how we have to adjudicate their contracts. We do get calls from customers complaining that dealers are calling extended warranty bumper to bumper which we is something we don’t appreciate because we have to now explain to the customer details on how the contract works when we expect the dealer to do that at the time of sale. There’s a lot more I can say but it would be a lot to read in the comments. Just make sure you read what you buy. Also read your car manual on your factory warranty because the exclusion are very very similar and they will automatically ask for service records if they see sludge in the engine trust me I have seen them in the newer vehicles on a daily. And oil consumption is another I see on a daily.
@bilnitro
2 жыл бұрын
I've had good luck with them, had a couple thru dealers many years ago.
@GHutube8
2 жыл бұрын
Just watched 3 videos exposing these scams...good for you ! You are also a "car specialist" so, great !
@robertewalt7789
2 жыл бұрын
Here’s a thought: the dealer is sort of self insuring. They can fix the cars; a big enough dealer can spread the costs of repair when owners claim under the service contract. Why do they feel motivated to rip off the third party company, and the consumer?
@henlofren7321
2 жыл бұрын
They're doing god's work by limiting the income of less intelligent people, making them less likely to spread their idiocy through reproduction.
@nicholasvinen
2 жыл бұрын
Greed.
@joemama6906
7 ай бұрын
I’ve worked for close to 40 years in DOD acquisition. We had a general counsel that used to say, “if it ain’t in the contract, then it ain’t”
@Old-bold-pilot
2 жыл бұрын
Florida law says those service contract are regulated as far as pricing. One state over dealer can get as much as the buyer will pay.
@jerryfacts9749
2 жыл бұрын
Going back to 1986, I bought a new car. Back then the dealers for this type of car were not offering extended warranty with a service contract. They referred me to a warranty provider. Back then I paid $350 for an extended 4 year warranty with service. I was never able to collect. Every time I tried to make a claim they made it very difficult. I had to go for an estimate first. I had to give them the estimate copy. In the meantime the vehicle may not be usable or have some issue that was annoying. There were times where I had to leave the car at the dealer and lease a car to drive. I had to sometimes wait for a week or more till they responded back. Every time I gave them the estimate they had some kind of excuse why this particular repair is not covered. During the second year I gave up. I ended up paying the repairs myself. I found out from some other people this warranty insurance company never pays out. I lost my money! After this bad experience I never ever bought another car from that manufacture and especially that dealer.
@jkracinginc.4021
2 жыл бұрын
Probably was a POS FORD!!!!
@frankmatthews3755
2 жыл бұрын
Great video! I can only imagine you are not a very popular guy with the warranty and financing folks...but that is their problem! Please continue to distribute excellent content such as this.
@peterovereijnder8300
2 жыл бұрын
Bough a second hand last month. got offered 3 month warranty on Engine & Gearbox for 350 euro extra. (i did this, 202k on the clock). not a week later. engine problems (no power). got fixed without issues and i'm happy i did buy the warranty and i'm happy it did get fixed quick :)
@michaelsmutnick
2 жыл бұрын
most warranty companies review claims rates of each of their dealers and will drop dealers that have too high of a claims rate, so only submitting applications that have claims will cause the warranty companies to drop that dealer immediately.
@mikemiller659
2 жыл бұрын
In 2006 I went to a SF Ford dealership and bought a new Focus Hatch-Back. I bought an extended warranty Thinking it was Ford as the warranty company., 4 years passes & I hear a knocking when I accelerated & slowed engine speed. The mileage was approaching 100,000 miles...the end of the coverage.I took the car to a closer Ford Dealer and they checked it out..in a few days I called..Whats the story..I asked. Apparently the engine noise was "Piston Slap" . Thats when I learned the Warranty company was not Ford. The dealer got permission from the company to Install a "Short Block" which came from Ford..the dealership Charged me $100.00 for the repairs As stated in the warranty, It took three weeks to complete the work. I drove a new Ford Focus @ $30.00 a week rental. The Focus ran great after that as I drove it another two years. Until 2012 when I sold it to my neighbor, & bought a 2012 Focus.. My neighbor's daughter drives the 06 now . The warranty cost $3,000.00 I think it was worth it. I drove the 2012 for 7 years close to 300,000 miles. I now drive a 2018 Focus Hatchback Titanium. That was the only extended warranty I ever bought.
@johnz8210
2 жыл бұрын
Good video. If people took the time to read these contracts and took some time to understand them, they would not purchase them. Most people don't read them, and think they have this bumper to bumper warranty, and all that has to happen when a problem comes up is a shop calls in a claim and it's all going to be free, less the deductible. That is almost never what actually ends up happening.
@kevinmurray5733
7 ай бұрын
As a service manager in the auto repair business for 35 years, I can say in that amount of time I only saw maybe one or two extended warranties that were worth the paper they were written on.
@bigjay1970
7 ай бұрын
🤯
@jackkreighbaum783
2 жыл бұрын
A friend of my daughter was (retired now) a claims rep for a well-known insurance company and she was directed to find a reason to charge the claims person at least 25% of the amount of the claims. The claims reps could be disciplined for not complying with the directive.
@jguenther3049
2 жыл бұрын
What exactly do you mean by "claims person?"
@jackkreighbaum783
2 жыл бұрын
claims person = person with an insurance claim.
@jeepien
2 жыл бұрын
@@jackkreighbaum783 :: Oh, no wonder it didn't make sense.
@Azhunt-wt2ih
7 ай бұрын
i am the guy that wrote the comment below. i had a customer come in one time with a ram truck with an aftermarket service contract. there was no factory warranty on it anymore. he had bought the truck 3 months before at another Chrysler dealer. the rear axle needed all bearings, ring and pinion gears and a differential. the repair was going to be 4000 dollars. when the writer called the service contract company, they said the customer only paid 1200 dollars for the service contract, so they gave him back his 1200 dollars and canceled the contract. i did a lot of work for service contract Companys in 24 years at a dealership and they tried to cut corners anywhere they could. i found the best thing to do was tell the customer what they were trying to make me do. the customer would contact the service contract co. and then i was usually able to fix it right.
@libertarian1637
2 жыл бұрын
When I bought my 4Runner new I laughed because the dealer both pushed the reliability of Toyota while at the same time pushed the need for an extended warranty. I want to say it was over $2k for the extended warranty, which was a Toyota factory warranty extension through 100k miles; a friend of mine owns a car dealership and has sold me warranties in the past at cost which for the top level warranties was always around $600 for a $0 deductible 100k mile warranty. I chose to not buy either and instead go with my auto insurer who offered mechanical breakdown coverage through 75k miles with a $250 deductible and was quite cheap with it adding just a few bucks on my 6 month insurance premium; I believe I spent around $240 in that premium over the 6 years it was in effect for. I never had a claim outside of my factory warranty period and have only had to pay maybe $400 for things that have broken since I have owned it, outside of normal maintainable expenses like oil, tires, and brakes; even with that I think the mechanical breakdown was a nice piece of mind. I had a previous warranty on a previous vehicle which I used a lot and which saves me as I had bought a lemon but as I bought it used it wasn’t covered under the lemon law; I had over a dozen fuel pumps, 3 transmission, and 2 computers put into the vehicle over the 7 years of extended warranty and definitely think I got my money’s worth. Warranties can be hit or miss but the fact that you’re overcharges so much is the real BS, I’m great full to have had a friend that was a dealer and sold me warranties at cost, despite never buying a vehicle from him. I totally agree with you about getting an independent inspection before buying used and have actually been saved a couple times by doing that with one even finding an odometer role back.
@knurlgnar24
2 жыл бұрын
Top tip: Most of these contracts have money back cancellation terms if cancelled within 90 days. This protects you from a lemon at no cost to you, just cancel before 90 days. Works a charm so long as you have a well worded written letter with no wiggle room to cancel.
@knurlgnar24
2 жыл бұрын
I should also mention that if you buy a contract you'll generally be able to negotiate a better overall deal. Finance through the dealer (make sure there is no pre-payment penalty), buy the warranty, then immediately pay off the finance with a check and cancel the warranty.
@carlscamino5844
2 жыл бұрын
I've been putting aside $100 per month in a separate account for over a couple of years now for any new car or truck that I may buy in the future. (We buy our vehicles new and drive them until they're nearly dead.) By the time I get around to buying a new vehicle again and the factory warranty runs out I'll have a nice sum of money to take care of any major problems, if they occur. I can't wait to tell the salesman that I already have a "warranty": it covers the vehicle from bumper to bumper; no one can deny my "claim" for any reason; I can take my vehicle ANYWHERE I choose for repair; it will last for as long as I own my vehicle with no time or mileage limits; and whatever portion is not used, will serve as a warranty on the next vehicle I purchase . . . . . . as well as paying me interest.
@july8xx
2 жыл бұрын
That sounds like the plan that I have been using for a number of years now. It is amazing how much you can accumulate by making regular payments to an account. If you employer will send deductions to an account for you, you will never miss the money going into that account.
@jimfarmer7811
2 жыл бұрын
I've bought a dozen new cars in my life and never bought the extended warranties. I've never had a major failure on any of the vehicles and saved the equivalent of the cost of a new car. I've found that people that claim they buy an extended warranty because they can't afford to service their cars are stupid. Stupid people are poor because they waste money on things like extended warranties and lottery tickets.
@welltell.
2 жыл бұрын
When i was much younger man, as a delivery person using my own vehicle... the I company I worked for tried to sell me this kind of auto repair insurance... and in side my head i thought to myself. The insurance is only $4000 bucks!!! I can save that money and use it to fix my own car if it breaks down.
@xlandros
2 жыл бұрын
When I bought the used vehicle I have now, the finance guy was really pushing the extended warranty, so much so that I almost walked out on the sale. His initial price was $2800, and he went all the way down to $1200, after me constantly saying I didn’t want one. He probably wasn’t happy that I was paying cash in full for the vehicle also. No money made off of me for him.🙂
@tacoponcho
2 жыл бұрын
If you think you outsmarted them by paying cash, then you might want to double check your numbers because dealers will often get their money back on a different portion of the sale
@TheOzthewiz
7 ай бұрын
The ONLY "extended warranty" I ever purchased was when I purchased a 1yr old CPO Cavalier (rental return), because the selling dealer promised a FULL REFUND if I didn't use the warranty. The "catch" was , that the car had to have to 100k miles on it AND 48 mo had passed since purchase of the warranty. Nothing major happened in the 4yrs/100kmiles that required me to use the warranty and believe it or not, I DID receive the FULL REFUND at the end of the warranty term! Btw, that Cavalier ('01) was BULLET Proof mechanically and electrically. I traded it 16yrs later with 205k miles , only because of MAJOR rusting! I have to admit that I took METICULOUS care of that vehicle by timely oil changes etc.
@kamilegier4730
2 жыл бұрын
An equally useless warranty is the road hazard warranty on tires. If the nail in the tire is in the side wall or within 1 inch of the side wall it can’t be repaired, if it can be patched, your speed rated tire that you need or required on your fast road car or sports car is not longer speed rated and are now dangerous if you drive too fast or for too long. If the tire has to be replaced they will measure the tread depth left on the tire to subtract it from a new tire so your new tire might be $20 less than the tire had you just bought without the warranty. You are far better off paying the $20 flat repair if needed or full price for replacement tire.
@riverraisin1
2 жыл бұрын
Yeah. I had some tires with a 50,000 mile warranty that wore out at 30,000 miles. The Goodyear dealer honored the warranty by pro-rating them and giving me new ones for $500. Those wore out after 36,000 miles so this time I replaced them myself by buying online and having them installed locally for under $500 total. Even the manufacturers treadwear warranties are a joke.
@johnpeters9793
2 жыл бұрын
@@riverraisin1 Discount tire used to be lifetime warranty on their warranty, now it's 3 years. Many manufacturers maintain their ratings with a patch... I always got the warranty when it was lifetime and even if 1 tire gets replaced, I've made out. Discount while still doing free patch repairs has really tightened the their belts lately.....so I've been shopping the membership stores and haven't bought the warranty lately. "BFGoodrich Maintained 3 repairs, minimum 90° apart Continental*Maintained Repairs cannot overlap. DunlopMaintained**Repairs cannot overlap1 repair, H and above General*MaintainedRepairs cannot overlap GoodyearMaintained**Repairs cannot overlap1 repair, H and above LaufennMaintainedRepairs cannot overlap MichelinMaintained 3 repairs, minimum 90° apart NexenMaintained Repairs cannot overlap RIKENMaintained3 repairs, minimum 90° Toyo H and AboveReduced to H. Voided if more than one repair. UniroyalMaintained3 repairs, minimum 90° apart"
@michaelcrawford9939
3 ай бұрын
The warranty companies are predatory on the elderly. As happens to many elderly people, my mom started having serious issues with her memory and thought processes about 8-9 years ago. At different times throughout 2016, she received calls and was convinced to purchase 3 (yes, three) separate warranties for a car that was 8 years old and still had 2 years on original car warranty (Hyundai Santa Fe). As I was straightening out her finances, I found out the actual warranty company was the SAME company but 3 different brokers called her. I'm now 52 and I still have never received a call about a car warranty (I get plenty in the mail, even for vehicles I haven't owned in almost 10 years). Had I had the time and money, I would have sued the warranty company and probably AARP for selling names that target the elderly. I have never been so pissed off in my life as I was when I found these documents.
@FrostyThundertrod
2 жыл бұрын
This is so painful to listen to because I have made this mistake when I the car I was driving had a rod knock I was desperate to get something to drive and I got robbed blind by express auto and gate way financial was told I had to buy the warranty to get financing in the end paid $6000 for a warranty on a $3000 minivan and 3 weeks later when the block sealer they pored into the radiator gave way and the head gasket started leaking again the warranty did not cover it. Turns out in Michigan it is illegal to force up-sale but of course it is Legal for the salesman to lie to me claiming it was
@marcvivori1561
2 жыл бұрын
Yes it’s illegal in every state. Its a federal law. It’s called Tying. You can’t tie one product, the car to a warranty. Had you sued you would have won Treble damages. Seriously.
@dennisg.7498
7 ай бұрын
Standard practice for these companies is if it is a major component failure, they require the customer to pay the shop to tear down the component ( engine, transmission, etc. ) and lay all the parts out so an inspector can come out. 1) Tear down can be 10 to 16 hours labor at $ 150 per hour. 2) The shop doesn't have the space to tie up with a non moveable vehicle and all the disassembled parts. 3) The inspector may not come for days or weeks. 4) The inspector will most likely find an unrelated part caused the failure. 5) The tech doesn't want to work for the cut rate labor hours the contract company wants to pay ( A 15 hour job that they only authorize 6 hours to fix.) 6) The customer ends up with a bill for tear down and the extra labor and parts the contract company won't pay.
@heretoforeunknown
2 жыл бұрын
"YAA" sells auto warranties on their channel. Somebody needs to check them out.
@klah2u
2 жыл бұрын
In the latest YAA video they state their warranty has paid out 105% of the warranty purchase amount. So that means they are losing money from their warranty reserve amount.
@heretoforeunknown
2 жыл бұрын
Okay, but Steve cautions never to buy warranties from a third party. And if they are losing money, then they must be the warranty which should be sufficient alarms.
@raywest3402
7 ай бұрын
An excellent explanation about the pitfalls of 3rd Party Warranties. Good job as usual Steve.
@BADHIGEEN
2 жыл бұрын
When ever I call fam/frns if I get the machine I whisper (I been trying to get ahold of you about extending your car warranty)😁
@theftworthrealtor
7 ай бұрын
Bought the car I drive now back in 2016...as I used to worked in the auto sales industry 20 yrs prior, I told the F&I man before we started to go over the finance paperwork, that he could save his breath and his time on trying to sell me any extra warranties on the paint, tires, wheels, scotchguard etc...he said he understood, but that he would be fired if he didn't "present" me with my options...so he started to sell me on the extra coverage they offered, the most ridiculous of which was $3,500 for a policy to cover the wheels on the car...he pointed out that the wheels were very expensive, $800 or so each to replace, to which I pointed out that at the quoted rate, I could just go buy 4 new wheels and still come out cheaper than the crazy insurance policy he was trying to sell...he became very frustrated and said that he was not going to bother telling me about the other offerings and just gave me my finance contract to sign...I told him that I was trying to save him time, but he didn't listen...after I signed he couldn't wait for me to get out of his office...😂😂
@billcosharek2932
2 жыл бұрын
Ben wondering how he's gonna get that Texas plate attached to Turbine, so inspecting it closely atop of Mic above windshield
@jfjerez
6 ай бұрын
I had an experience . I was station in the Navy inn San Diego CA. I purchased a brand new thunderbird vehicle. I was offered extended warranty. All nice but then I was transfer to Phoenix, AZ. My duties required to travel to San Diego after. One time the transmission went out in Phoenix. I took the car to FORD dealership thinking a FORD is a FORD anywhere in the country… I was surprised that the extended warranty I was purchased was NOT a FORD warranty and, for that reason they were not going to honor it. It was 3th party warranty, and I had to take it to San Diego to fix… a car with no transmission? I had to hire a tow truck at my expense… I almost cry… I drove to San Diego on my 2nd vehicle and faced the dealership that sold me an extended warranty and not disclosures that it was not a FORD’s one, I was so angry that they noticed and somehow they accepted to be fix in Phoenix and summit the bill so I can could be pay. I was lucky, I just can’t image a person that move across country and driving to the original dealership was not an option… ? They need to disclose it at the time of the purchase. Myself I ask before I decide to take one of those.
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