All extended warranties are usually a scam, no one reads the fine print.

All the people I know have gotten screwed by them when they try and get work done.. its usually "oh that's not covered"

 

yep, I told them to shove the extended warranty where the sun don't shine.... Its a huge ripoff. Then on top of denying that coverage intiallly... They called me for a straight year trying to sell me on it again and again.

 

Thats not to bad, I have always held out until they come down on the Extended warranty price! They have started as high as $3000, but there is no way I would pay that, That is how the dealership gets money, the Warranty only costs them a fraction of what they charge you. Most cost them nothing they get a "fee" for selling it to you.
It almost became a deal breaker for me on this Silverado, Finance guy was a prick, but I stood my ground and got a seven year extended warranty for $500, even at that I feel I paid to much for it!!

Look online,, you will find a few companies that offer extended warranties for a fraction of what a dealership will charge!

Think about this,, I bought a "left over" truck, already a year old, They enticed me into a GREAT deal on an extended warranty. when I explained that the 3 year 36k warranty only had a year left on it because my truck sat on the lot for a year, The salesman/closer tried to explain,,"Oh No,, it starts after the truck is purchased" Was about the breaking line for me!! I demanded he show me that in writing!! He taps a few keys and low and behold,, My 2012 was actually built in 2011, I purchased in 2013, quick math and I only had less than a year left on the 3/36 B to B,, We now go see the "Manager" and he sells the extended to me for $500,, I still feel ripped off, but I got the dealership preferred awesome whiz bang deal with out an out of pocket deductible for 2 years,, Then does me a favor of two years free of oil changes.
Walk out with a Seven year/100K Extended warranty,,, Only to find out that the start date was NOT at the end of my 3/36 but the DAY I signed for my truck!!
And I didn't discover this until a few months later when I took my truck in for a warranty issue!! So in essence, I got ripped for a seven year that is really only just under six year and just under a year of No Out of pocket!!
So yeah,, Negotiate and READ EVERYTHING before you leave!!

 

I have found that most of the time when a consumer gets ripped off they didn't bother to read the contract, plain and simple it is down in writing what is and isn't covered, how much it costs and what you can and can't do to the truck to maintain the insurance policy, because that is what it is.

 

It does state that it starts at 0 miles, I even brought it up when I got it to the dealer. They just told me that is how it has to be written, even though they said the factory will cover the first 36k. Sooo why am I having to pay for 36k when my factory already covers it? Sell me a 64k warranty you scammers?

 

For me - Common Sense ....

1. Don't buy an extended warranty when the NEW truck comes with Bumper to Bumper 3 yr/ 36 .... wait until you approach the 36,000 (what if you trade or it gets wrecked = lost money)
2 If they are selling it, it's to THEIR advantage - not yours - Do you feel that unlucky ? or just itching to spend more money ?
3. If you buy one, make sure it's GM (GM) ! (my free extended GM drive trane warranty on my 15 GM HD (commercial sale) is backed by a NON GM company) so sleazy of GM to do that - tells alot about GM (if you do not follow the laid out maintenance plan exactly you have NO Extended Warranty, and it's easier for an after market company to deny your claim ....) GM will not look like the bad guys

I've been buying new trucks for 14 years (4 new trucks) and have never needed ANY major work on them, & I usually trade them in at about 140,000 miles.

GM Trucks & Cars are nice / GM is NOT your friend ... they just want your money so forget the small talk during purchase - it shouldn't take more than a few minutes for the dealer to give you a price - the rest is just the BS of softening you for more profit on their end - most buyers are nice and don't want to be rude asking for more & more money off MSRP when the salesman is acting like a buddy - he's not your friend - just say NO - Too Much and don't hesitate to say "If you guys keep pushing these extra(s) BS - I'm walking ...."

sorry to act like Joe Negative - I used to sell cars :-(

Salesman are sharks and you are the feeder fish (minnows)
When buying real estate & cars - YOU pick the salesperson - not the other way around !
Don't be shy - 30 seconds can save you a weeks pay ! or two.

Rant Over

 

Why do folks continue to fall for these "extended warranties" ? What is the purpose of buying them? Isn't is easy to just tell the dealers financial person NO! when doing the paperwork? What do you expect to gain from having an extended warranty?

 

My truck has been in the shop for roughly 10 times since I bought it, I have used the extended warranty once so far. Guess it saved me a bit so far. Dealer said the warranty would cost more if I added it later...yea yea. With all the electrical crap on these newer vehicles, I'm waiting for that to go out so it covers the cost of the warranty. In the past a extended GM warranty has paid for itself for me.

 

It is a crap shoot, I have been thankful at times for the Ext warranty and I have also gone past the ext and not needed it. I feel that the one I got on my wifes Impala ss paid for itself, Twice I had to take it in for the blend door motors, A $350 job (price from dealer) and just before it expired I had a Harmonic balancer go bad, An $1100 dealer job, Paid $50 out of pocket for those three so that one evened it self out and saved me some money.
We bought a Toyota Previa van back in the day and Toyota threw in a three year Ext Warranty, It was four months after the Ext warranty when I had a power sliding door go bad!!! Oh well,, Win some loose some!!

 

I just got a call this morning warning me that my truck is out of warranty....Well, duhhh, I went over 36,000 miles two years ago. They make it sound like it is an emergency to get back under warranty and they are really concerned for my welfare.....I just keep saying, "YEP, Uh Huh, right, OK, Yep, OK, Uh Huh". And finally, "Don't ever call this number again".

 

Yeah I still get those once a month for my 08 i bought without a warranty and sold a year ago. It's always a different company too.

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As stated, they are all junk. I think I read somewhere that GM does not even offer GMPP anymore. So anything they try to sell you is not backed by GM. I wouldn't buy one either way, but would feel better with a GMPP if I just had to buy one for some reason. Stay away from them, do not save you any money really.

 

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

A quick google search turns up a lot of dealers willing to sell you a genuine GM warranty. So I don't know if your info is correct.

 

Sorry, it is backed by GM, but not Ally, as it was before when it was known as GMPP. Now it goes by GMEPP. Here is where I read about it. It is a different plan than it had been for years. Read some of the posts on down. It is not the same. Don't know if it is worse, better, or what? I have never bought one. http://www.cruzetalk.com/forum/9-genera ... inued.html

 

Unless you are a lawyer and accountant all in one, it is impossible to really know what all these extended warranties/service plans really are and what they cover which is typically a lot less than most people think. I have never purchased one and likely never will. Just like the extended warranties you get hammered with when you buy an electronics device, the general consensus is "just say NO". Those outfits are not in business to help you, they are there to make a profit.....off you. And there business is a lot less scrutinized and regulated than that of the car insurance, health insurance and other traditional markets.

You will come out way ahead if you just do sound and timely scheduled maintenance and plan for the occasional part wearing out or breaking. If you are buying used, you are better off doing your due diligence and researching the history of the vehicle and having the vehicle inspected. The only time to buy extended coverage is if you know there is something wrong with the vehicle and that it will break down and that you KNOW IT WILL DEFINITELY BE COVERED. The other big problem with these plans is they don't really cover much at all...certainly not what most people think they do.

 

Sorry, it is backed by GM, but not Ally, as it was before when it was known as GMPP. Now it goes by GMEPP. Here is where I read about it. It is a different plan than it had been for years. Read some of the posts on down. It is not the same. Don't know if it is worse, better, or what? I have never bought one. http://www.cruzetalk.com/forum/9-genera ... inued.html

It would seem if one was to buy an extended warranty (after reading the Cruze link/thread) that it would seem wise to buy a warranty through GM, since GM no longer has any interest in ALLY what-so-ever. AND hopefully, if an issue arose GM (hopefully) would have a vested interest in keeping a customer happy.

I just purchased a Certified 2012 GMC Sierra and since it's certified it's backed by GM with a full year and/or 12,000 miles. PLUS two oil changes at any GMC dealer.

 

Sorry, it is backed by GM, but not Ally, as it was before when it was known as GMPP. Now it goes by GMEPP. Here is where I read about it. It is a different plan than it had been for years. Read some of the posts on down. It is not the same. Don't know if it is worse, better, or what? I have never bought one. http://www.cruzetalk.com/forum/9-genera ... inued.html

It would seem if one was to buy an extended warranty (after reading the Cruze link/thread) that it would seem wise to buy a warranty through GM, since GM no longer has any interest in ALLY what-so-ever. AND hopefully, if an issue arose GM (hopefully) would have a vested interest in keeping a customer happy.

I just purchased a Certified 2012 GMC Sierra and since it's certified it's backed by GM with a full year and/or 12,000 miles. PLUS two oil changes at any GMC dealer.

Agreed. If buying one, would make sure it is the GM backed plan for sure. My Dad is a semi-retired mechanic from a Chevy dealer for over 44 years, and he has told me many horror stories of people coming in and having a warranty through someone other than GM and the dealership would not honor it at all.

 

good to know this now that im knee deepinto my truck note... Hahaha

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Every time I've bought a USED vehicle from the dealer I've purchased the extended warranty and it's always at least paid for itself.

The trick (for me) is to buy the used vehicle from the dealer that sells that vehicle. (Don't by a Ford from a Chevy dealer for example, buy it from a Ford dealer).
Then only buy the manufacturer's extended warranty.

I bought my 2014 GMC Sierra from the GMC dealer when it was 5 months old and had 5,000 miles on it. I purchased the top-of-the-line extended GM warranty for $1,500. That warranty extends me out to 8 years or 86,000 miles. Bumper to bumper.

I've already used some of it now that I'm over 36,000.

My problem is buying a truck on a 5-6 year term and having it out of warranty after only 3. Leaving me with 2-3 years left on payments and no warranty for the just-in-case.
That's a risk I'd rather pay less up front for and not need than take the double-hit down the road.

 

To add another wrinkle, what about the GAP insurance they want to sell you?

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A) if you need GAP insurance you shouldn't be buying a new truck, buy something you can afford B) get it through your insurance company.

 

Not saying that i needed it just bringing up other finance ad ons that they try and sell that you probably will never use.

I didnt get gap or the extended warranty for either one of the two trucks I purchased, and havnt ever gotten either the gap or extended warranty because as others pointed out. Most of what isnt cover is what will most likely fail and with what is cover thy will fight tooth and nail to deny (probably) but cant say for sure from lack of experience.
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I know, in general. The last new Subaru my Ex bought, when she traded in her old car they tried to get her to not put as much money down and to buy their gap insurance. Knowing it would be worth less than she owed on it the second she drove off the lot.