by "SteveLehto" (stevelehto)
Published 03/30/2017 at 09:00
by "SteveLehto" (stevelehto)
Published 03/30/2017 at 09:00
No Tags
STARS: 6
I get a lot of phone calls and a common topic is the third party warranty that did no good for the buyer. But most people don’t really think about this until it is way too late to do anything.
Used car sellers will often offer extended service contracts or warranties to car buyers that come from someone other than the car’s manufacturer. Some of the warrantors you may have heard of - GM, FORD etc - and some you may not have. Bob’s Warranty Shack of Lubbock.
The first sign of trouble is when someone tells me they have a warranty but they don’t know what it covers and don’t know who the provider is. People often pay for these warranties without even getting anything to prove they have a warranty (other than a receipt showing it was paid for).
So, you need to know which ones of these are worth buying and what you need to ask before you decide to buy one. It’ll save you that embarassing phone call (with me) that will come somewhere down the road. And this week’s podcast was inspired by two people who contacted me this week on different but semi-related matters.
The audio:
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The video:
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The top pic is what happens when the smallest newspaper in the world takes your picture and runs it on page 13.
Follow me on Twitter: @stevelehto
Hear my podcast on iTunes: Lehto’s Law
Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and Michigan lemon law. He wrote The Lemon Law Bible and Preston Tucker and His Battle to Build the Car of Tomorrow.
This website may supply general information about the law but it is for informational purposes only. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour.
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
03/30/2017 at 09:13, STARS: 2
But what about Derg’s bumper to bumper something something?
"SteveLehto" (stevelehto)
03/30/2017 at 09:15, STARS: 1
Pay whatever they ask: It is worth it’s weight in gold!
"Land_Yacht_225" (nadenator)
03/30/2017 at 09:28, STARS: 3
Oh come now, my sketchy warranty paid out...once...$600 on a $3,100 bill...
"Wil Haginen" (wilhaginen)
03/30/2017 at 10:02, STARS: 0
Generally agree with you. The only exception that I can think of to this is CarMax’s MaxCare warranty, after reading about Doug Demuro’s experiences with his Range Rover.
"SteveLehto" (stevelehto)
03/30/2017 at 10:26, STARS: 0
Yes, and I think that’s unique. The ones I am talking about (3rd party) are offered by someone who is not a party to the sale and not the manufacturer of the car.
"jimz" (jimz)
03/30/2017 at 10:27, STARS: 0
do you have a book signing schedule?
"Wil Haginen" (wilhaginen)
03/30/2017 at 10:31, STARS: 1
And if I had listened to your podcast BEFORE I commented, I would have known that. That one’s on me.
"EL_ULY" (uly)
03/30/2017 at 10:35, STARS: 2
*actually shivers*
Oh how I loath 3rd party car warranty companies.
“We found these used control arms from a similar car”
“We are only paying this much for these parts”
“ Diagnosis charge is at this pay rate”
aaaaaarrrrrrgggggggh
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
03/30/2017 at 11:14, STARS: 0
The salesman — nice guy — on my wife’s car tried selling me a $1,300 warranty on what was effectively a low-mileage Corolla. Hard pass.
"SteveLehto" (stevelehto)
03/30/2017 at 11:21, STARS: 0
I have a whole bunch of talks/signings coming up but they are all in MICH. Where are you located?
"SteveLehto" (stevelehto)
03/30/2017 at 11:21, STARS: 0
Yes and no. I always forget to mention Carmax because they should be part of the conversation. Thanks for the note.
"SteveLehto" (stevelehto)
03/30/2017 at 11:23, STARS: 1
Yes, “Your engine was used before it failed so we are going to replace it with a used one. Otherwise, you’d be getting a ‘betterment.’”
Or, “That internally lubricated part failed due to the failure of a non-lubricated part and as such, none of it is covered.”
"jimz" (jimz)
03/30/2017 at 11:40, STARS: 0
SE Mich. I stopped by Pasteiner’s when you had your signing of the Daytona/Superbird book.
"EL_ULY" (uly)
03/30/2017 at 11:46, STARS: 1
lol buuuurned :]
"ateamfan42" (ateamfan42)
03/30/2017 at 12:15, STARS: 2
Or, “That internally lubricated part failed due to the failure of a non-lubricated part and as such, none of it is covered.”
“Our super-secret adjuster we send out to inspect the car before we approve the repair told us that plastic component cracked due to corrosion, and corrosion isn’t covered. No, you may not speak to the super-secret adjuster or call him a liar to his face (even though you know he is one).”
“The mirror heater that failed is connected to a piece of mirror glass, and glass isn’t covered.”
“Our ‘book’ says that failed part costs $120. We don’t care that no one on the planet can get one for less than $250. We only pay ‘book’ cost. No, you may not look at our super-secret ‘book’.”
“Our ‘book’ says that broken Audi transmission can be completely rebuilt in 8 hours. We don’t care that a certified Audi service department actually takes 5 weeks to do the job. We only pay ‘book’ labor. NO, you still may not look at our super-secret ‘book’.”
“When we say ‘bumper-to-bumper’ coverage, what we really mean is the few parts we will actually cover are located somewhere between the 2 bumpers. We won’t really tell you which ones until after you try to place a warranty claim.”
"ateamfan42" (ateamfan42)
03/30/2017 at 12:17, STARS: 0
In the end, the 3rd party warranty on my Audi paid out about twice what I paid for the warranty. But that only covered about 1/5 of the total repair costs. “Bumper to bumper” does not mean what you think it means.
"Land_Yacht_225" (nadenator)
03/30/2017 at 12:29, STARS: 1
Yeah. Try imagining the feeling when you find out that the one pump your warranty doesn’t cover is the power steering pump...when you drive a Mercedes with ABC suspension and the power steering pump IS the tandem suspension pump.
"Land_Yacht_225" (nadenator)
03/30/2017 at 12:30, STARS: 0
Mine was $1,200...I got what I paid for; a big list of exclusions and a $60 an hour labor cap on a car that is $100 an hour with the mechanic who flakes and won’t return my phone calls. $125 at my regular guy.
"Dr. Zoidberg - RIP Oppo" (thetomselleck)
03/30/2017 at 13:24, STARS: 0
Yeah, the one I declined has lots of fine print, which confirmed that the paper it was printed on had more value than the entire warranty.
"WiscoProud" (wiscoproud)
03/30/2017 at 14:33, STARS: 0
I haven’t had a chance to listen to the podcast yet, but I will ask anyways. Are there any good third party warranties? My credit union offers one if you get a loan through them, which is set up by years/mileage, deductible, and level of protection. I was able to find a sheet listing everything that was covered for each level too. I was also offered one through my Geico car insurance years back, but didn’t do it.
Since these would be offered through legitimate businesses with defined terms, would they be okay? I have a desire for unreliable german vehicles and would prefer to protect myself.
"SteveLehto" (stevelehto)
03/30/2017 at 18:31, STARS: 0
Sorry, I often lose track of the names on here. The closest to Detroit I’ll be in April as far as a talk goes is that I will be doing a presentation and signing at Totem Books in Flint. I’m sure I’ll have others. Right now I have a ton of them up north, places like Alpena and Houghton.
"SteveLehto" (stevelehto)
03/30/2017 at 18:34, STARS: 0
Those would be preferable to the ones you’ve never heard of but most of them will operate like insurance companies. That is, they will try and weasel out of paying if they can. I’d still prefer to see one backed by an auto manufacturer.