Auto Repair Rip Off

[MC]

Don't go to All-Star Automotive Service on 16th and Ridgeland  They took my wife to the cleaners.  First they make her believe someone cut wires in her door maliciously and while she's thinking who would have done that, they give her an outrageous estimate.  While distracted by who would have cut the wires, she accepts the estimate.  A little research on the internet, there's a video showing the ground wire breaking is a very common problem with the model and make of her car.  Also not sure why a broken wire would require a bunch of new parts or why they would make her believe someone maliciously cut her wires when it's common problem with the car. 

Just wish she listened to me when I told her where she should bring her car.  Over $900 later her car window goes up all the time now, compared to only sometimes. 

[berwyn senator]

Dealers are sometimes the better choice?

[scottymac]

Senator, Dealers get/have received a bad rap, but these days they're forced to be very accountable.

MC, try Deece over by East Ave. and Stanley. Yes, I know them. But I'm in the auto business and know quite a few dealers in the area personally and can take advantage of a favor(s) if need be, but I take my cars to Deece.

And MC (and anyone else), if you have the opportunity to buy an extended warranty on your vehicle, buy it. Not anything advertised on TV, but something offered by a reputable dealer at the time you buy your car.

[dukesdad]

And MC (and anyone else), if you have the opportunity to buy an extended warranty on your vehicle, buy it.

Buying lottery tickets would be a better bet.

[scottymac]

And MC (and anyone else), if you have the opportunity to buy an extended warranty on your vehicle, buy it.

Buying lottery tickets would be a better bet.

DD, with all due respect, you make a very general alternate recommendation to my suggestion. Maybe it is tongue in cheek, but I have to ask why you think making one of the most lopsided bets in the world is a better play than spending some money to insure the inner workings of your vehicle(s).

SM

[dukesdad]

I have never bought an extended warranty in my life. I have yet to regret that decision. The only ones who make money on extended warranties are the dealer, the salesman and the insurance company.

From Consumer Reports:

"You might be tempted to buy an extended warranty on your next laptop or dishwasher or a service contract for your new car. But chances are what you spend will be money down the drain.
Retailers push hard to get you to buy extended warranties or service plans because they're cash cows for them: Stores keep 50 percent or more of what they charge for warranties. That's much more than they can make selling actual products.
Extended warranties are notoriously bad deals because:

    Some repairs are covered by the standard manufacturer warranty that comes with the product.
    Products seldom break within the extended-warranty window--after the standard warranty has expired but within the typical two to three years of purchase--our data show.
    When electronics and appliances do break, the repairs, on average, cost not much more on average than an extended warranty.

We've long found extended warranties to be a bad deal for you and advise against buying them. Note that you might want to consider an extended warranty for a repair-prone brand, provided that the warranty is inexpensive and comprehensive and the cost of repairs tends to be high."

[Bonster]

I've had them twice with automobiles; once I covered the cost in repairs, once I did not.  My wife, on the other hand insists on them and she's presently batting 1.000 in terms of covering.  I think it depends on your confidence level what you can afford leveraged by what you really want (i.e. a reliable little box vs. a rattle-bucket that's otherwise fun and/or useful).

[menace2society]

Extended warranties on household goods are a waste.  Sears protection on appliances is invaluable.   Extended warranty on a car is invaluable as well.  Most cover trans or engine issues.  The deductible you pay won't even come close to what you would pay in labor for either one. 

[scottymac]

Menace, most customers are keeping their cars longer these days due to the lingering stagnant economy. And actually our sales of extended warranties have increased over the last few years as new and used car customers want to insure the working parts of their cars beyond the manufacturer's warranty or beyond the powertrain coverage that is offered. Reputable firms offer various deductibles and various levels of coverage to suit your risk tolerance (or as Bonster put it - your confidence) on the piece of metal that you are buying. Consequently, my firm has seen a significant increase in our paid claims in the last several years due to more customers buying service contracts and using them. And, no our prices have not increased.

DD, Consumer Reports is right. We do make money on the service contract business. And what's wrong with that? We take all the risk. It's like any other insurance/risk product. It's the law of large numbers. We sell a shit ton of contracts. Some customers engines blow up and we buy them new ones, and some people get cars that run perfect for 200,000 miles. We paid out around $80mil in auto mechanical repair claims in 2012, so there are alot of people that are glad they bought the coverage. I'm glad that you have been lucky by self-insuring your cars.

I'll leave with one last thought. Car dealers do push warranties a little harder than they have in the past, especially on new cars. 15-20 years ago the markup on a new car used to be around 3-5%. Yes that's right. You know what it is now, due to the internet, and customers that are willing to shop, shop, shop? Dealers I know are practically giving new cars away these days. And if they can make a few bucks on an extended warranty or a GAP policy, they will.

Thanks,
SM   

[berwyn senator]

What is wrong with purchasing an extended warranty no deductible,7Yrs. 100,000 miles, for $1200.?

[dukesdad]

What's wrong is you are unlikely to get your money back. I use the word unlikely because some will, some won't, but most won't. That's why the insurance companies stay in business. It's simple actuarial calculation that the dealers do a great job of turning into an emotional decision. While you are buying that service contract, don't forget to get the rust protection, paint protection, Scotchguard for your seats (even if they are leather), see if they'll sell you those fancy floor mats and some pinstriping.

[berwyn senator]

There are plenty of dealers that push all the extras,this why buying a car is a pain in the hind end. I have a pretty good relationship with one dealer but still from past experiences with others I always remain cautious.I also understand the insurance companies pay the dealers less then they would charge a retail customer for the same repair.

[OakParkSpartan]

What's wrong is you are unlikely to get your money back. I use the word unlikely because some will, some won't, but most won't. That's why the insurance companies stay in business. It's simple actuarial calculation that the dealers do a great job of turning into an emotional decision. While you are buying that service contract, don't forget to get the rust protection, paint protection, Scotchguard for your seats (even if they are leather), see if they'll sell you those fancy floor mats and some pinstriping.

The one thing that might sway me to get an extended warranty next time is the cost of repairing electronics.  In the last 2 years, we've spent approximately $2000 on repairs due to various small electrical items failing.  Dashboard computer, instrument cluster...annoying as hell.

That would be what factors into my calculation.

[dukesdad]

If you take the plunge, make sure that kind of stuff is included. Many contracts specifically exclude electronics or limit the time or mileage covered for those items.

[OakParkSpartan]

If you take the plunge, make sure that kind of stuff is included. Many contracts specifically exclude electronics or limit the time or mileage covered for those items.

I know...it was a real eye opener.  The car ran fine, but warning lights were all on and it was some little module under the dash. 

There was no option for remanufactured either...the computers were tied to the other components via a serial number or some other mechanism.  Really sucks.

[scottymac]

DD, you're right on the money. And the other one is seals & gaskets. Our "Platinum" coverage covers just about everything, but we sell gold and silver options that are priced less, but exclude certain parts.

Caveat Emptor (sp). Make sure you read the contract before buying.

And I'll offer it out here. If anyone is considering purchasing an extended warranty, I'll gladly examine the contract and give you my expert opinion. Disclosure: If it's an auto, there's a good chance it might be from my company.

SM

[dualref]

What is wrong with purchasing an extended warranty no deductible,7Yrs. 100,000 miles, for $1200.?

These days the extended warranties on cars are more like $2,000-2,500 for the same term.

I once bought a new car and the dealer said it came with the extended warranty. I told him I didn't want it. He said one the warranty is "put on the car" it can't be removed and I'll just have to pay for it. My response "If you think I need that warranty for the car them maybe there are inherent problems with that model and I should be looking elsewhere for a car..." Then he offered to drop it.
I came back with "I thought you said the warranty couldn't be removed once installed? The only way I am going to buy this car now is if you give me the car with the warranty at no cost." He left the room came back with the sales manager and since it was 8pm on the last day of the month, I got what I wanted..

[seebee]

Thinking of taking the plunge on a used car. Warranty talk again. The dealership is gonna call me today with a price on an extended. I think the co was JMA. Am I missing any details to need from this warranty?

Payouts - need the warranty co to payout, and not ONLY offer reimbursements.
Locations - need the warranty to be honored at ANY repair shop, (or most) and not only a select few.
Price - negotiate the price if buying from the dealer.

Anyone have a suggestion on a co to go with?
Car is gonna be a 2004-2006 Gmc Envoy or Chevy Trailblazer (they are the same car) with 80k-ish miles.

[~LL~]

Stay away from Mike & Sons.  Personally know that he has ripped off at least two seniors who put their trust in him.  Unforgivable to rip off anyone - but these seniors has been going to him for a while and then were subjected to:
Incomplete work
did not resolve issue pointed out
did not completely correct unresolved issue when owner brought vehicle back again
overcharged to correct original issue - charged again to fix work not completed by them!!
& harassed good customer inordinately for minuscule balance (under $50.00) after customer having paid $1,700.00 in total for originally requested work
Also -- customer insisted he drive the vehicle himself for a couple miles to be sure one particular issue was corrected  before calling them to pick up their vehicle & he said he would.  Senior customer noted odometer reading before leaving lot. Odometer barely changed upon their return -- driven from the lot into the garage area...but was told, "Yes, drove it several miles". 
Thumbs down to Mike & Sons.

[scottymac]

Seebee, JM&A (Jim Moran & Associates) are a very reputable firm to consider purchasing an extended warranty from. JM&A are our most formidable competitor in the marketplace as it relates to extended warranties on new and used vehicles. I work for the largest independent (or third party) supplier of extended warranty prodcuts in the US. JM&A, and Us have similar programs that mirror, or better the factory programs available. We're not "fly by night" operations. My company has an AM Best rating of A-, and I believe JM&A is right there too.

Our programs allow you to take your car to any authorized repairs facility and will pay by credit card to the repair facility, so no out of pocket for you, except the deductible. On that note, you may be offered a "disappearing deductible" that requires you to bring any repair back to the selling dealership. It's a way for them to manage the claim at hand, as well as tie you back to the dealership and garner loyalty anticipating your next purchase.

This all being said, extended warranties and other Finance & Insurance (F&I) products are 1 of 4 cost centers at a dealership, and in a lot of cases these days, the F&I performance and profit are where dealers make the most money.

My advice is to get a quote on the warranties. You will have options on terms and coverage. We call our top line bumper to bumper coverage Platinum. Don't buy anything less. Nothing worse that getting in the service lane only for a manager to tell you "that's not covered". Don't let them pressure you. There are surcharges if you do wait and go over certain mileage bands ( as the exposure starts to get greater for the underwriter).

I'd be glad to talk to you more. Send me a PM if you would like.

S