Auto Warranties, or, why Chrysler needed a bailout

[Fitz]

The reason is: they clearly don't make good business decisions.

I had a problem with my 2007 Malibu that turned out to be the intermediate steering shaft. A part that, per my extended warranty, is covered for "defects"

However, as with any warranty, nothing that's wear and tear is covered.

However, given that the car only has 51000 miles on it, that part shouldn't be worn out already. So I argued the point with the Warranty provider (chrysler addedcare). The repair, through the dealer that the warranty company sent me to, was 440 dollars.

They wouldn't relent. I then asked, "How much will i get refunded to me if I cancel this obviously worthless warranty."

"860 dollars sir."

Me: "Ok... If you guys don't cover this repair, I'm cancelling."

Them: "We're sorry to hear that, sir"

Me: *blinks incredulously* "So... you'd rather send me a fat 860 dollar check than perform a 440 dollar service?"

Them: "Yes, sir."




So I cancelled. They're refunding me my money. I will never buy another car warranty again.

[Chuck Dye]

A Chrysler warranty on a GM product?

Perhaps they recognized but did not articulate the ooops! factor?

[Fitz]

The GM product was purchased from the used department of a Chrysler dealership.

In any case, the warranty company referred me to a Chevy dealership for the repairs, then denied the claim.

[Headless Thompson Gunner]

Smart move on their part.  For 800 clams they bought their way out of having to keep a Malibu running.

 

[Fitz]

ROFL. this is the first issue I've had. It's a good little car.

[brimic]

The reason is: they clearly don't make good business decisions.

Neither does the federal government.

It all fits together....

[Hawkmoon]

I don't think you were really dealing with Chrysler. Those used car warranties are provided by independent third parties, and Chrysler (or the stealership) just gets a commission if they con you into buying sell you a warranty.

Not that I have anything especially good to say about the company that's trying to take the "Jeep" out of Jeep, mind you ... but I have even less good to say about third party warranty companies.

[roo_ster]

I don't think you were really dealing with Chrysler. Those used car warranties are provided by independent third parties, and Chrysler (or the stealership) just gets a commission if they con you into buying sell you a warranty.

Not that I have anything especially good to say about the company that's trying to take the "Jeep" out of Jeep, mind you ... but I have even less good to say about third party warranty companies.

Isn't the new Jeep Wrnagler motor the same one outta their minivan?  Why do I think that might be found lacking?

[brimic]

Here's my take on extended warranties- for the money you'd pay for a warranty, you can buy a fairly decent starter set of tools and a shop manual. Occasionally you will need to buy a specialty tool for some repairs, but most car repairs are still well within the abilities of a shade tree mechanic or semi-determined DIY-er. The only major repairs that happenned that were outside of my abilities that I've had to deal with in the last 15 years happenned within 50,000 miles and had service bulletins or recalls covering the conditions...

I probably save at least a fifteen hundred dollars a year on all of the nickel and dime repairs and maintenance that I do myself.

[mtnbkr]

Here's my take on extended warranties- for the money you'd pay for a warranty, you can buy a fairly decent starter set of tools and a shop manual. Occasionally you will need to buy a specialty tool for some repairs, but most car repairs are still well within the abilities of a shade tree mechanic or semi-determined DIY-er.

Does it buy time?  That's what I lack more than money or know-how.

Chris

[brimic]

Does it buy time?  That's what I lack more than money or know-how.

Valid point.

[AZRedhawk44]

So I cancelled. They're refunding me my money. I will never buy another car warranty again.

Best auto warranty I ever bought was the $100 for my big set of Craftsman wrenches.

Auto warranties are a shell game and a gamble on the part of the seller, and when something bad DOES happen they can do their worst to stiff the consumer, dicking around and knowing that time is inherently on their side.

[drewtam]

Manufacturer's warranties can be legit and drives the manufacturer to improve the product.

Aftermarket and extended warranties are not warranties, they are insurance programs; and sometimes they are empty promises, like you just found out.

[Parker Dean]

Prior to Cerberus Chrysler Service Contract tended IME to be the most liberal of all the service contracts and most likely would not have even questioned a mere $440 claim unless it was hinted by the shop that they needed to look closer (which happens sometimes).  There were several claims that I know of that they bought complete engines and transmissions that they weren't technically obligated to do any more than repair because they didn't want a future albatross, so to speak.

After Cerberus they disappeared from my work world until a couple months ago and even that was only a single job so I don't have any recent experience. The same people I used to talk to were there though.

GMPP and Ford ESP weren't too bad, but usually only did what they were obligated to under the terms of the contract.

Independent service contracts? I'd recommend against. A few are OK and conduct themselves like professionals, but far too many do not and it's those guys that give the entire industry a black eye.