Extended Warranty?

[MadForCaddy]

Hello,

I have a 2000 Seville with only 29,800 miles -- less than half the average! I have a mind to take a risk and not take out an extended warranty. Thing is, I don't actually know what the odds are. My friend Paul who owns a Corvette says "I would not own a high-end car without one". Is he being paranoid, or is there statistical justification for extending the existing waranty? In the past (five years) I've had a motor-mount replaced; two (service engine soon) censors replaced; and the censor for the horn -- which together would have been around $1,600 - $2,000.

I really don't know what to think. I guess the big question is -- how do the Northstars hold up, and what about Cadillac transmissions? Anybody have any ideas?

Thankx, Philip

[Willie Hank]

I tend to think this decision should be "weighted" by your mechanical aptitude, and/or willingness to perform your own repairs. I find the N* engine very "maintenance friendly" and with the easy access to the codes, diagnostic friendly, as well. I don't necessarily enjoy fixing cars, but I really don't trust most mechanics, know I will typically perform a better job (not racing against the clock), and will also save money in the long haul.

If your typical mode is to bring it to the dealership or shop for most maintenance, you may want to consider the warranty, codes can go off for very minute reasons, and I believe they charge just to look at the codes for diagnosis.

[halfrican]

I purchased my 2001 STS from the dealer that I work for (competitive make). I am a Finance Manager in the dealership and thus make my living selling extended service agreements. I personally would not purchase a pre-owned, or a new vehicle that I intended to keep beyond the factory warranty without purchasing an extended service plan.

Since I purchased my STS in September, my service contract has payed to replace the following:

1) Both tie-rod ends

2) Instrument cluster

3) Driver's heated seat elements

4) Passenger front power window motor controller

5) Front Motor Mount

I am sure I am missing something, but needless to say I am quite sure that I am "at least" on my way to getting my money's worth out of my service contract. I purchased a "bumper/bumper" 5 year/150,000 mile policy and payed "a lot" for it (even at employee purchase price) but I also realize that I purcased a pre-owned $55,000 dollar car. When it breaks, I will still be having a $55,000 car repaired.

Just my humble, non-mechanically inclined opinion, but I think anyone who purchases a vehicle that they intend to own for longer than the factory warranty would be making a potentially bad mistake.

I am not implying that many dealers charge more than a reasonable profit for their service agreements, but I beleive that if you purchase one from a reputable company you are likely to come out the winner. Most reputable extended service agreement companies have a significantly less than 10% reserve on their contracts (net profit after claims).

In my experience, mechanics are often the most frequent purchasers of such plans, that tells be that they believe in the value also.

If you find working on your own vehicle fun, are willing to invest in the manuals, and tools required to work on your own Cadillac or any other vehicle, and can get a good deal on parts, I say "more power to ya!".

For the rest of us, is it worth the risk? Cadillacs and most other "high-end" vehicles are notoriously frequent flyers in the service department, I think odds are in your favor if you invest in an extended service contract. Just read the policy (front and back) pay close attention to the "exclusions" and be very wary of any company with what appears to be coverages that are "too good to be true." Also inquire about how long the company has been in business, who under-writes their policies, and where your allowed to have your vehicle serviced under their plan.

Sorry if I this got so long-winded, but it's a sensitive subject for me.

Good luck...

Half

[CadiKing]

MadForCaddy,

I tend to agree with what's being said here.

I bought a year old '99 Chrysler 300m with 10,k miles.

I bought the car out of an auction for a good price.

I was able to get the extended warrenty, through Pinnacle Insurance,

as 5 yr. 100,k mile extension for only ~$800. Figured I couldn't go wrong. I was good up to 110,000 miles!

Under warrenty they replaced both fans, steering rack, and few more things.

Total bill about $2,000....This is where it gets tricky... Read the fine print.

Some areas are; Can they use after-market parts,? In my case, yes...Who'd a thought? Service done by Chrysler in a Chrysler Garage...Pinnalce didn't want to pay for OEM parts!

What is the deductable? Mine was only $50.00...But...I had to pay discovery... This is where they discover how much of your money they can get out of YOUR WALLET along with the warrenty company! Discovery is them checking out what needs done at a shop rate of, in my case, $93.00/Hr. My discovery was over $250.00! Not cheap for them to confirm what you already know!

Then comes in the Rental CAR! I had to wait TWO DAYS for the Pinnacle guy to show up to confirm the work, then wait four days for the parts...all without a rental car! The rental car is based on half days of labor done on the car only...Since my work took 12 hours of labor, I got the rental for only a day and a half...They had the car for more than a WEEK!

The work could only be performed by a dealer using Pinnacle...This means the dealer 4 miles from my house couldn't do it...had to go 20 miles away!

Be careful, ask questions...get the asnwers in writing...

Good Luck and Enjoy your Cadillac!

[OynxSTS]

Extended warrantees are like "insurance against breakdown" you will note that a lot of extended warrantees are offered by insurance companies.

As noted above, if you do buy, read the fine print, most do not cover suspension, shocks, hubs, etc which are expensive on our cars. Also know the company you are buying from... If its out of business in 2-3 year you are SOL. Or in other words GM Protection ONLY IMO

Also there is a MASSIVE commission to the agent for selling any of these "policies" NEGOTIATE!

My '02 has 49,000 Miles on the clock and in the 9 months I've had it the dealer has replaced the radio ~$900, both front hubs ~900 (plus labor, lots), fixed the leaky trunk ~$50 (plus labor, three trips worth). And I have put $15 into turned front rotors and $20 cracked pass rearview mirror.

I'm going to put the cost of the extended warrantee into my "gift" account and roll the dice.

Good Luck to all with and without extensions!

[tmpafford]

I bought my 97 STS in 2000 with a two year extended warranty through David Taylor Cadillac in Houston. The car had one year left on the original warranty and they had a deal where if you did not used the extended warranty, you could get a full refund. Since I was buying a lease trade in and I did not know about the previous owner, I thought it was a no-brainer. I did not want to have to replace the N* if something should happen.

Ended up using the warranty for several repairs. Not major repairs, but ones that I could not do myself. Ended up spending less for the warranty that I would have for the repairs. Great decision! I would do it again.

[RalPh]

I tend to think this decision should be "weighted" by your mechanical aptitude, and/or willingness to perform your own repairs.

I don't agree, I worked as a mechanic when young for several years.

I fix Everything!

But..... I bought a 7ry/100,000 extension (for $1,200) for my car because, after getting the Helms Manuals, I realized I like everybody else, was at the mercy of the high costs of parts. Parts I couldn't Ever hope to fix!

The number of $500 (and above) suspension, engine, trans, climate, & braking computers alone - scared me.

Let alone the costs of major driveline compoments.

I wouldn't spend insurance on maintenance or upkeep but even doctors carry heath insurance against castastrophic failures

btw, MadForCaddy, put a little effort into a SEARCH here, there's ALOT of info...

[PAT38915]

By all means get the extended warranty...i took a chance and didnt buy mine on a 2000 cadillac deville and i had to have the engine replaced which cost me $4,310

but thankfully general motors paid the same amount as i did or i would have had to pay $8,620... ill never drive a car without a warranty again, even if i have to get a cheaper car, ill always have a warrenty.. i have learned a lot on this board..and the one thing i learned the most was to have that warranty at any expense, it could save you BIG BUCKS, and you will feel much more comfortable should you have any problems...just my opinion....

[tmpafford]

By all means get the extended warranty...i took a chance and didnt buy mine on a 2000 cadillac deville and i had to have the engine replaced which cost me $4,310

but thankfully general motors paid the same amount as i did or i would have had to pay $8,620... ill never drive a car without a warranty again, even if i have to get a cheaper car, ill always have a warrenty.. i have learned a lot on this board..and the one thing i learned the most was to have that warranty at any expense, it could save you BIG BUCKS, and you will feel much more comfortable should you have any problems...just my opinion....

Pat, I am sorry you had to learn such an expensive lesson. Your horror was the exact reason I justified purchasing the extended warranty.

[PAT38915]

well to say the least it was a nightmare, but ive paid the bill, my cars runs good, and im giving up the fight..i have too much to be thankful for, to just dwell on the bad..im glad you got the warrenty...seriously, you may need it and im glad i have one now, too...you just never know what can/will happen...thanks

[Scotty]

tmpafford, chill man, its Friday, its not worth the aggravation..... Mike

Remember what happened when Rick Lazio approached Hillary Clinton the press made her out to be victimized and she looked good. Lets not do that here, this fiasco is over

[tmpafford]

well to say the least it was a nightmare, but ive paid the bill, my cars runs good, and im giving up the fight..i have too much to be thankful for, to just dwell on the bad..im glad you got the warrenty...seriously, you may need it and im glad i have one now, too...you just never know what can/will happen...thanks

Hope you stick around. Glad the engine is running well now. Give it a few weeks and let us know how you like the new engine.

[coolnesss]

What companies have you all had good/bad experience with???

[PAT38915]

thanks, and yes im going to stick around, ive learned a lot on in this forum, and of course ill let you know how the car drives after 2 weeks...im well pleased with it so far, but i havent driven it much, but anyway thanks for asking me to stick around, i appreciate it, thanks again

[tjtjwdad]

When searching for warrantys, check who the underwritters area nd how solvent they are, because in the end, they're the ones who pays the claim.

Jim

[Ranger]

I agree with Willie Hank. I have never bought a warranty and have yet to come up short. That said, I do my own maintanence and repairs. Over the years I have probably saved enough to buy 2 engines. Even if I had a warranty I would probably be on the short side as I have never had any real major problems that would have made it worth while.

Pat,

Glad to hear that you have your car back and it is running good. Are you going to keep it? I think you had a RARE and unfortunate expirience but I also think if you keep it amd maintaine it properly it will give you many years of pleasurable driving. Good luck.

[halfrican]

What companies have you all had good/bad experience with???

A good place to start is with the "factory backed" General Motors Protection Plan Major Guard policy. Factory backed programs have the benefit of the manufacturer of the car underwriting them, and thus having a little more "stake" in the deal. Many "third party" companies only have the profit/loss analysis of the specific claim/policy to weight their decision on, factory backed plans also have the future sales of their automobiles to factor in. For example, if a factory backed plan claim is declined, they client will likely blame the Manufacturer of the program (future lost revenue for the manufacturer). If a "third party" plan denies a claim, they may lose that client for the service contract, but not the clients future purchases of that make of automobile.

Factory backed programs aren't always the cheapest, but the usually offer the most comprehensive coverage. I personally purchased a plan from United Car Care, they are underwritten by the Hartford Insurance Group (highly rated) and have been in business for over 17 years.

One's to avoid IMHO:

GE Capital

Heritage

Wynns

Any policy that is not written as "exclusionary" meaning that they only tell you what is covered as opposed to stating that the only items not covered are listed specifically.

Hope this helps

Half

[PAT38915]

Yes, Ranger, im going to keep my car, it dosent have a scratch on it and the interior is just like new, and as of not its purring like a kitten...ive had 2 caddies

and to be honest with you they are the best driving, riding, car on the road..gosh i gotta get outta here, be back later...

[GR8NSTAR]

I believe this was a topic once before and may be in the archives, but I'm a strong advocate for the extended warranties. I purchased my 98 deville with 44k miles on it. The warranty cost me about $2200 with tax and I've had over $6000.00 worth in repairs. The name of the warranty company is A.U.L. and I have no deductable. I would like to advise that along with covering shocks and struts, make sure whatever company you decide to go with make sure it covers seals and gaskets as well such as mine. My warranty was for 5yrs or 50k miles which ever comes first. Anyone know of warranties for cars approaching 100k miles or more?

[RalPh]

Factory backed programs aren't always the cheapest, but the usually offer the most comprehensive coverage. I personally purchased a plan from United Car Care, they are underwritten by the Hartford Insurance Group (highly rated) and have been in business for over 17 years.

Hope this helps

Half

In Fact, the Factory extensions are just 1/2 the coverage for 2X the price

You'd be better off self-insuring.

I got (and again, I said this So Often in other posts that a SEARCH would have found) 7yr/100,000 - no deductible - bumper2bumper - towing - road service - rental - coverage for $1,200 from WarrantyDirect.

The Piece Of Mind it's afforded me has been well worth it (although I must say, it's been almost 5yrs now and I haven't really used it and still have under 50K miles on the car)

[halfrican]

Factory backed programs aren't always the cheapest, but the usually offer the most comprehensive coverage.  I personally purchased a plan from United Car Care, they are underwritten by the Hartford Insurance Group (highly rated) and have been in business for over 17 years.

Hope this helps

Half

In Fact, the Factory extensions are just 1/2 the coverage for 2X the price

You'd be better off self-insuring.

I got (and again, I said this So Often in other posts that a SEARCH would have found) 7yr/100,000 - no deductible - bumper2bumper - towing - road service - rental - coverage for $1,200 from WarrantyDirect.

The Piece Of Mind it's afforded me has been well worth it (although I must say, it's been almost 5yrs now and I haven't really used it and still have under 50K miles on the car)

1/2 the coverage for 2x the price? Care to expand on how you determined that ratio? The list of exclusions on a GM Major Guard policy (as an example) are almost identical to the exclusions of the factory "bumper/bumper" warranty. The differences are made up of mostly the wear items like the battery, belts & hoses, brake friction parts, exhaust system, trim, tires, tire balancing, front end alignments, glass, bulbs, etc.

Not to be argumentative, but show me a list of exclusions from another company that covers more and is backed by a company that has been in business for any length of time. "Factory backed" programs are also usually the only plans that cover items such as saftey, and emissions related items. Also, consider that you have the choice of about 10,000 factory dealers to choose from for your service work.

Again, I have been in the extended service agreement industry for in excess of 18 years, and beleive my info to be correct, if not I apologize.

Half

[iowaboy77]

Get the warranty!

My car:

2001 Seville STS with 40,000 miles when purchased.

Purchased 10/03

Under residual factory warranty I replaced the water pump, several gaskets, the windshield, the steering wheel, tire pressure sensors, speed sensor, and had transmission work. All since October!

Now i'm past 50,000 miles. She goes to the shop again a week from today. Thank God for extended warranties! I really learned my lesson from my 97 Eldorado- lots of repairs including head gasket replacement. Get the warranty!

[RalPh]

1/2 the coverage for 2x the price? Care to expand on how you determined that ratio? The list of exclusions on a GM Major Guard policy (as an example) are almost identical to the exclusions of the factory "bumper/bumper" warranty. The differences are made up of mostly the wear items like the battery, belts & hoses, brake friction parts, exhaust system, trim, tires, tire balancing, front end alignments, glass, bulbs, etc.

Not to be argumentative, but show me a list of exclusions from another company that covers more and is backed by a company that has been in business for any length of time. "Factory backed" programs are also usually the only plans that cover items such as saftey, and emissions related items. Also, consider that you have the choice of about 10,000 factory dealers to choose from for your service work.

Again, I have been in the extended service agreement industry for in excess of 18 years, and beleive my info to be correct, if not I apologize.

Half

I'd be glad to!

It's from experience I did ask the dealer about an extension when my warranty was about to run out. He quoted me $1,800 for 3 yrs/50K with a $50 deductible.

For those 3 yrs, WarrantyDirect's charge (on my 7yr plan) was @ $500 (wait, that's more than triple!! the price) with NO DEDUCTIBLE.

Warranty Directs coverage was certainly better. Their list of exclusions was pretty small (and the only type of coverage anybody should accept is one that list what's NOT covered, NOT what is)

I think this was clear to me when I inquired about the electronic struts. GM said "They're Shocks and NOT covered" Warranty Direct said "They're your suspension, they ARE covered!)

There is little else at the dealership, with the possible exception of used cards, that is more profitable than the Extended Warranty. You get hosed pure & simple.

[halfrican]

1/2 the coverage for 2x the price?  Care to expand on how you determined that ratio?  The list of exclusions on a GM Major Guard policy (as an example) are almost identical to the exclusions of the factory "bumper/bumper" warranty.  The differences are made up of mostly the wear items like the battery, belts & hoses, brake friction parts, exhaust system, trim, tires, tire balancing, front end alignments, glass, bulbs, etc.

Not to be argumentative, but show me a list of exclusions from another company that covers more and is backed by a company that has been in business for any length of time.  "Factory backed" programs are also usually the only plans that cover items such as saftey, and emissions related items.  Also, consider that you have the choice of about 10,000 factory dealers to choose from for your service work.

Again, I have been in the extended service agreement industry for in excess of 18 years, and beleive my info to be correct, if not I apologize.

Half

I'd be glad to!

It's from experience I did ask the dealer about an extension when my warranty was about to run out. He quoted me $1,800 for 3 yrs/50K with a $50 deductible.

For those 3 yrs, WarrantyDirect's charge (on my 7yr plan) was @ $500 (wait, that's more than triple!! the price) with NO DEDUCTIBLE.

Warranty Directs coverage was certainly better. Their list of exclusions was pretty small (and the only type of coverage anybody should accept is one that list what's NOT covered, NOT what is)

I think this was clear to me when I inquired about the electronic struts. GM said "They're Shocks and NOT covered" Warranty Direct said "They're your suspension, they ARE covered!)

There is little else at the dealership, with the possible exception of used cards, that is more profitable than the Extended Warranty. You get hosed pure & simple.

Wow the price/coverage of the Warranty Direct product does indeed seem to be exceptional. You mentioned that you haven't had to use the coverage yet, so your not sure how their customer service is. After looking at their website, it DOES appear that they offer a good value, however from what I read they didn't indicate that they covered electronically controlled struts, but rather macpherson struts.

I agree, never (if possible) purchase an extended service contract from a vendor that won't list the exclusions from coverage!

That said, I think you and I agree on one major point, YES there is value to having an extended service agreement, which is what the original post pertained to.

I wish you luck with your policy, my faith in the factory backed product's value remains.

Excellent debate...

Half

[franey]

MY STORY ON EXTENDED WARRANTIES. Prior to my bumper to bumper , certified car warranty running out, i also checked into the extended plans beyound the GM warranty, I researched the companies on the internet and at that time their were several places that you could get a comparative rating of a lot of the companies that were offering the warranties. You also could find out how they handled claims and their was a ton of info from customers , both good and bad. On several sites the companies were even rated for over all performance , based on a host of key issues. Info regarding the reinsurers was also available. After a month of research i settled on a company called WARRANTY GOLD, I spent 1400.00 for a 24 month policy or so many miles, i do not recall at this time the miles. This company was always rated in the top three companies , on the rating sites. I never had a reason to file a claim, but 12 to 14 months into the warranty i was notified by WARRANTY GOLD , THAT their reinsurer was fileing bankruptcy and that all warranties written before the first of the month in which i was notified of this , that they would not honor any claim against my policy. Any claim that i may have ,would have to be filed in bankruptcy court and they were kind enough to furnish me with the backruptcy number and the court for which i could file my claim in. They went on to say that any policy that had been written since the first of the month would be honored by them , and their new reinsurer was strong and all the good BS they could muster up about them. Then they had the balls to say that this in essence was not their problem and if i ever needed an extended warranty in the future that WARRANTY GOLD , WOULD BE THEIR FOR ME. As for me if it is not BACKED BY GM , THEY CAN PUT THEIR EXTENDED WARRANTIES WHERE THE SON DOES NOT SHINE , and i have gone back to self insuring the car myself as far as repairs go , and wish i had my 1400.00 back. By the way i was an unsecured creditor in the bankruptcy petition and unsecured creditors recieved NOTHING. BUT A LESSON IF LIFE.