Extended car warranties are B.S.

[tallyho8]

When I bought my 2013 Genesis Coupe I broke down and bought the extended warranty for the first time since it was made in Korea and I knew parts were going to be expensive. The Coupe had a 5 year or 100,000 mile warranty on everything and a 10 year engine, drive train warranty. The extended warranty was supposed to cover anything that went bad (except brake pads, tires, battery etc.) after the 5 year warranty ended except for the engine and drive train that the 10 year warranty covered.

I keep this car in perfect showroom condition inside a garage and only drive it 4000 miles a year since I have so many other vehicles to drive. It is now 7 years old with 24000 miles and original tires that look like new and nothing has ever broken till now. The starter went out so I brought it to the dealership for repairs. They contacted the company that wrote the extended warranty and were told that they would not cover it unless I gave them proof that I followed all of the recommended maintenance procedures for the last 7 years.

The maintenance book recommended changing the oil and filter every 7500 miles or every 6 months. Since I only drove it 4000 miles a year, I had the oil changed once a year every 4000 miles. I can not believe that a car used so little under easy conditions would need an oil change every 2000 miles just because it sat in the garage most of the time.

Since I did not change my oil every 6 months at 2000 miles the warranty company would not pay for the starter repair and cancelled my warranty since I was "not maintaining the car properly".

To make matters even worse they pro-rated the warranty and charged me for 7 years of the warranty and only refunded me for 3 years (30% of the cost of the warranty). Since the warranty only took effect after my 5 year warranty expired. I only used 2 years of the 5 year warranty and should have gotten back 60% of the cost.

Just try to get just compensation from a warranty company that is out of state.:confused2:

If you were in my position, would you have had a dealer change the oil every 2000 miles or done it yourself and keep all the records and receipts for 7 years and what would your next step be, or was I completely in the wrong?

 

[RalphVa]

Agreed. Never ever took out one. Same for almost anything. If it's gonna fail prematurely, it'll do it probably within the first year.

Ralph

 

[txdon]

That's how they make their money. I get about 5 calls a week to extend my warranty and the dealer really pushes it at closing. I had an extended warranty on two vehicles in the past and kept my oil change records but they never asked for them for a few minor repairs. I never exceeded repairs more than the cost of the warranty. I stopped buying them.

Thanks for sharing to remind people that they have to really read and abide exactly by the terms of the contract.
I would say they are within the contract terms to ask you to prove you have done all the required maintenance, - but I have not read your contract. I would argue that I did all the required maintenance on the starter that the manual called for. (which is probably none).

 

[ray66v]

It's simple math.

They do not offer extended warranties as a community service. They offer them, because they make money off of them.

That means the odds are, you won't need the warranty as much as you will spend on repairs.

Yes, everyone has heard the story about, or knows some guy who had a major repair bill payed by some extended warranty. You never hear about the opposite though. :laughing: You never hear about the guy who spent thousands on a warranty, to cover repairs he didn't ever need.

The warranty companies use fear mongering like, New engine $6500, New Transmission $4000. Guess how many new engines and transmissions they actually pay for? I guarantee you they will be putting a used one, or a rebuilt one in, and not a new one. So, that's a lot of nonsense.

They didn't build Las Vegas, because everyone goes out there and wins all the time. They built it because they win almost all the time.

You know who else wins almost all the time? The extended warranty companies. Or, they wouldn't be in business.

 

[Sawyer Rob]

I always thought when you buy an extended warr., you would already KNOW what you had to do to keep it valid, that it was common knowledge!

That's why I never have bought one, because I would have to go to my dealer for everything ON SCHEDULE or it would be voided.

Anyone who buys anything like that, should check all of this out, BEFORE they sign on the dotted line, you have just had a "lifes lesson"!!

SR

 

[Fuddy1952]

I'm beyond pixxed and it's not even my car!
We've had Hyundais for years because of the warranty...never had a problem. Never bought an extended warranty on anything.
As I understand the Hyundai warranty, the starter should be covered by their warranty! It not tires, wiper blades, a battery, etc.
Me... I'd simply call Hyundai customer service. Tell them it won't run when you turn the key...have it towed to a dealership for repair.
What sold me on Hyundai is in 90s my first Accent made an intermittent squealing noise. Dealer gave up trying to find out what it was. My guess was power steering pump front bearing. One night coming home it started squealing...I quickly popped hood, put a drop of oil on a long thin screwdriver. As soon as I touched it to pump...bingo! It was quiet.
Next day I took it to dealer, left it, they called saying they couldn't get it to squeal.
I called Hyundai, explained the situation, and I'm a mechanic (not by trade, but work on my own stuff). They sent me a new pump overnight AND a check for $45 (they said that's what they would of paid the dealer). I installed it in 20 minutes.
We've had 10 Hyundais since.
Never a Genesis...that's top of the line.(Accent, Elantra, Tiburon).

 

[ultrarunner]

Factory backed is very different from third party... however the third party is often more money for the seller...

 

[fried1765]

In 1999, I bought a Mercedes extended warranty that I paid $2000 for.
Never collected anything!
Spent LOTS of money on Mercedes repair AFTER the warranty expired.
Never bought another warranty on ANYTHING,.... ever again!

 

[dragoneggs]

I think extended warranties on just about anything are a waste of money. My thinking is that for the money you save in buying extended warranties on various items will pay for any repair of a major item, or repurchase of less costly items.

 

[kf4uda]

I think extended warranties on just about anything are a waste of money. My thinking is that for the money you save in buying extended warranties on various items will pay for any repair of a major item, or repurchase of less costly items.

I think that you are right.