Aftermarket Automotive Extended Warranty

[gogogo]

Anyone who can recommend a reliable company that sells automotive extended warranty in Canada? My friend owns a 2003 Mercedes and the factory warranty is expiring soon, but he doesn't want to buy it from the dealership.

Thanks.

[TigerHawk]

I suggest going with the Mercedes dealer warranty. But another safe alternative is Lubrico ( http://www.lubrico.com/ ), they've been around for a while and I've gone with them before.

[1DarkChaos]

yeahh
i really wouldn't trust those unless they are well respected but generally just go for a dealership waranty if u r plannign to go for one

[gogogo]

The extended warranty offered by Mercedes can only protect the car for maximum 3 years, after that period they will not offer their warranty. The cost for a 3 year warranty is around $2900 plus taxes; however, the car needs to do a pre-inspection by Mercedes in order to purchase their factory extended warranty. The preinspection would charge for 2 hours labour whhich is $227 plus taxes. If the preinspection passed, they would let you buy their warranty, what a rip-off!

I remember BMW do not have to do this complicated procedures and their warranty is subcontract to the other company!

[sixer]

lol, what a ripoff! That said, only dealer warranty is worth it.
Doesn't like it, don't drive a luxury vehicle that takes premium gas and costs tons in repairs.

[Rehan]

Don't bother with the aftermarket extended warranties.
http://www.canadiandriver.com/forum/index.php/topic,28043.0.html

[gogogo]

It looks like Lubrico has a negative customer feedback.

[Hellcat]

Don't bother with the aftermarket extended warranties.
http://www.canadiandriver.com/forum/index.php/topic,28043.0.html

Sounds like someone has their nose out of joint because of a real estate deal not a used car warranty. I've been the the automotive business for decades and can tell you that Lubrico is a great company that does pay claims. They've been in business for about 25 or 30 years. They encourage you to read their contracts and the only thing you have to do is get regular service done. I've had customers that were 2000 kms late on their maintenance and they still paid for a transmission in his car.
Anybody who whines about Lubrico didn't read their contract and deserve what they get.
Compare the price of a Lubrico warranty to a manufacturers warranty. Night and day.

[enko]

Wow, that's your first post?

[Hellcat]

Wow, that's your first post?

Is that good or bad?:cheesygri

[Toronto]

Usually aftermarket warranties are sticklers for detail and the slightest thing, such as going over in KM for an oilchange, will void the deal completely.

[Hellcat]

Usually aftermarket warranties are sticklers for detail and the slightest thing, such as going over in KM for an oilchange, will void the deal completely.

In most cases, I'd agree but, that guy with the tranmission was just an example. Lubrico doesn't seem to that hard assed about it. Best part for me is I get paid in no more than 2 weeks and when your trying to run a business that's important.

[enko]

Is that good or bad?:cheesygri

Your first post is hyping up some aftermarket warranty that is apparently hyped up to be crap. It's bad.

[gogogo]

My friend called Lubrico last week and they told him that the warranty can be purchased from some dealerships such as KIA at McCowan and Hwy 7; however, the most interesting part is the car must be repaired at their destinated mechancial shops such as Sam's Garage which is next door at KIA dealership (note: if the car is located at markham, for instance).

I thought the aftermarket warranty can let you service / repair the car at your preferred dealerships and the dealership can reimburse the repairing cost from the warranty company. Lubrico said "No".

[Hellcat]

Your first post is hyping up some aftermarket warranty that is apparently hyped up to be crap. It's bad.

Talk to the guys like me that do service work for them. Call Lubrico and ask them for some shops that do work for them and ask them how they feel about Lubrico and whether they pay their claims. I'm happy with them and so are the customers that have brought their cars to me for warranty work.
Like I said, some warranty companies, maybe most, are crap. There are a couple out there that are decent guys. IMHO.

[Hellcat]

My friend called Lubrico last week and they told him that the warranty can be purchased from some dealerships such as KIA at McCowan and Hwy 7; however, the most interesting part is the car must be repaired at their destinated mechancial shops such as Sam's Garage which is next door at KIA dealership (note: if the car is located at markham, for instance).

I thought the aftermarket warranty can let you service / repair the car at your preferred dealerships and the dealership can reimburse the repairing cost from the warranty company. Lubrico said "No".

I'm not sure why that's a problem.

[gogogo]

The problem is do those independent garages have any equipments to test if the intercooler pump has failed for instance or will they use OEM parts to fix it.

Yes, it does not mean whether it is a Mercedes or a Kia, the question is will they fix the problems? If I bring a 2007 Porsche 911 Turbo for them to fix the transmission, can they able to fix it? If they do, I would definately choose the those independent garages.

Again, anyone would recommend another aftermarket warranty companies that allow te buyer brings his / her car to the dealership for repairing?

[Hellcat]

I guess the question is, would you rather pay a minimum of $2500 (More like $5500 at the franchise dealer) for a transmission at your shop or would you rather have it for free or very near free at an independant? If you've got the money then you don't need a warranty but, the guy who just spent his last nickel on his car may not be in your shoes. I'm not trying to sell this program, I just don't think it's fair to slag a company without educating yourself.

[Rehan]

Extended warranties are purchased by two kinds of people:
1) The mathematically challenged who don't realize the numbers behind the insurance business.
2) Those who don't have a rainy day fund/credit for things that are destined to need replacement (often because they've wasted their money on things like extended warranties in the past.)

The better solution for both of these types is not to waste their money, but rather to either get educated on the issue or to manage their money better.

[Hellcat]

Extended warranties are purchased by two kinds of people:
1) The mathematically challenged who don't realize the numbers behind the insurance business.
2) Those who don't have a rainy day fund/credit for things that are destined to need replacement (often because they've wasted their money on things like extended warranties in the past.)

The better solution for both of these types is not to waste their money, but rather to either get educated on the issue or to manage their money better.


Would you drive without insurance if the law allowed it?

[Rehan]

Would you drive without insurance if the law allowed it? Yeah, I do "self insure" myself when possible...for example, I've omitted collision coverage on my vehicles. If I had a million or two dollars lying around, I would avoid life insurance premiums as well.

[Hellcat]

Yeah, I do "self insure" myself when possible...for example, I've omitted collision coverage on my vehicles. If I had a million or two dollars lying around, I would avoid life insurance premiums as well.

That's great for you. Most people aren't in your shoes though. I've seen them first hand in my shop and I've seen their gratitude.
Quite frankly I find your comment about educating people about managing their money rather pompous and arrogant. Not everybody's financial hardship is because of poor financial decisions. Next I expect you to ask "are there no jails, are there no work houses?"

[Rehan]

Quite frankly I find your comment about educating people about managing their money rather pompous and arrogant. Not everybody's financial hardship is because of poor financial decisions. Of course not, and I didn't say it was. Maybe you take "often" to mean "always", but I certainly don't.

And it looks like you do agree with me that extended warranties are a "poor financial decision". Thanks. :)

[Hellcat]

Of course not, and I didn't say it was. Maybe you take "often" to mean "always", but I certainly don't.

And it looks like you do agree with me that extended warranties are a "poor financial decision". Thanks. :)


That's just plain stupid and you know it. You argue symantics because you've got nothing else.

I thought I came to the wrong forum after I'd seen some of the posts by the "moderator".
Funny how a guy that has all the money to insure himself and pay for all his repairs without blinking an eye, hangs out at "Red Flag Deals"
Don't get a warranty, suit yourself. But, really I suggest you keep your lousy advice to yourself. I speak with first hand experience. I suspect you speak strictly speculatively.

[Rehan]

That's just plain stupid and you know it. You argue symantics because you've got nothing else. Okay, so you want me to lay out the math for you and the rest of the folks out there? Here you go...

Suppose an extended warranty provider insures 1000 customers, each paying $1000 for two years extended warranty coverage. That's $1,000,000 in revenue. So out of each $1000, where does that money go?
- sales commission (15% to 25% is not uncommon)
- administration
- insurance company's profit
- reimbursements for repairs

So how much are consumers getting back in the form of reimbursements? Certainly a lot less than $1000. Even for the people that don't have the money to pay for it up front, it's often better to finance car repairs using low interest credit cards than to purchase an extended warranty.

Funny how a guy that has all the money to insure himself and pay for all his repairs without blinking an eye, hangs out at "Red Flag Deals" I just showed lots of people in this thread how they can save money by avoiding an extended warranty. That's a pretty good deal, isn't it? :) Saving money is only one aspect of RFD, though...you can see from my posts that I'm more active in the other forums outside of "Hot Deals".

Anyway, the folks here don't have to take my word for it.. They can read up on it from other sources, as well. For example, http://www.consumersunion.org/finance/auto-dealer-rpt303.htm says:
Owners of used cars paid an average of $1,381 for extended warranties, and new car buyers paid an average of $1,371. Based on the the detailed rate filings for one large insurer backing these plans, we estimate consumers overpaid an average of $755 for their extended warranty. In addition, because the cost of this product is also added into the loan, they paid interest averaging another $499 over the life of the loan. Ouch. Imagine buying something for $1400 and realizing that you spent $1250 too much. The truth does hurt sometimes.

[wookie]

Okay, so you want me to lay out the math for you and the rest of the folks out there? Here you go...

Suppose an extended warranty provider insures 1000 customers, each paying $1000 for two years extended warranty coverage. That's $1,000,000 in revenue. So out of each $1000, where does that money go?
- sales commission (15% to 25% is not uncommon)
- administration
- insurance company's profit
- reimbursements for repairs

So how much are consumers getting back in the form of reimbursements? Certainly a lot less than $1000. Even for the people that don't have the money to pay for it up front, it's often better to finance car repairs using low interest credit cards than to purchase an extended warranty.

I just showed lots of people in this thread how they can save money by avoiding an extended warranty. That's a pretty good deal, isn't it? :) Saving money is only one aspect of RFD, though...you can see from my posts that I'm more active in the other forums outside of "Hot Deals".

Anyway, the folks here don't have to take my word for it.. They can read up on it from other sources, as well. For example, http://www.consumersunion.org/finance/auto-dealer-rpt303.htm says:
Ouch. Imagine buying something for $1400 and realizing that you spent $1250 too much. The truth does hurt sometimes.


Very informative. I am in a situation where I am considering getting a warranty on my 2006 vehicle. However the more I read the more I think I will just take my chances and hope for the best. The only thing that has me worried is the fact that two people I know and out of 5 vehicles between them only 1 of the extended warranties hasnt paid off.

[Hellcat]

Very informative. I am in a situation where I am considering getting a warranty on my 2006 vehicle. However the more I read the more I think I will just take my chances and hope for the best. The only thing that has me worried is the fact that two people I know and out of 5 vehicles between them only 1 of the extended warranties hasnt paid off.

So, the question is, are you going to trust real life experience or a disgruntled forum poster and a consumer group that paints the whole warranty industry with the same brush?
I've had customers that paid $129 for a warranty leave my shop with a rebuilt transmission at no cost to them.
I've had customers in my shop that would have had to park their car because the $2500 transmission repair would have forced them to park their car had it not been for their warranty.
So Rehan, will you be prepared to explain why you gave your lousy advice to the people who listened to you, when their used car breaks down and they have to pay though the nose to fix it.
Just to prove how ridiculous this advice is. Let's apply it to the all the other things we pay for on a day to day basis.
Let's get rid of unemployment insurance, probably never need it.
Let's get rid of life insurance, those companies are obviously collecting more than they're paying.
Let's get rid of OHIP and lower taxes. If you saved you money, you could pay your own health bill.
Where do I stop.
You make it sound like it's a sin for a company to be profitable. I sure as heck work to earn a profit and I'm sure the compay you're with also does. That's why you have a job.

[Hellcat]

Quote:
Anyway, the folks here don't have to take my word for it.. They can read up on it from other sources, as well. For example, http://www.consumersunion.org/financ...ler-rpt303.htm says:

Nice. An American consumer group, investigating American warranty companies. That's probably like comparing American HMO's to OHIP.

[wookie]

So, the question is, are you going to trust real life experience or a disgruntled forum poster and a consumer group that paints the whole warranty industry with the same brush?
I've had customers that paid $129 for a warranty leave my shop with a rebuilt transmission at no cost to them.
I've had customers in my shop that would have had to park their car because the $2500 transmission repair would have forced them to park their car had it not been for their warranty.
So Rehan, will you be prepared to explain why you gave your lousy advice to the people who listened to you, when their used car breaks down and they have to pay though the nose to fix it.
Just to prove how ridiculous this advice is. Let's apply it to the all the other things we pay for on a day to day basis.
Let's get rid of unemployment insurance, probably never need it.
Let's get rid of life insurance, those companies are obviously collecting more than they're paying.
Let's get rid of OHIP and lower taxes. If you saved you money, you could pay your own health bill.
Where do I stop.
You make it sound like it's a sin for a company to be profitable. I sure as heck work to earn a profit and I'm sure the compay you're with also does. That's why you have a job.

I will decide in time, I try to make informed decisions as there are always going to be people who are pro and people who are con on any subject. For around $1500 I would get an extended warranty but the price the dealership wants (~$3000) is absolutely nuts. I need to contact them and see what they can offer me or I may look into the third party options however many people that have had non - dealership warranties usually have the worst stories about getting things covered.