by "Noah - Now with more boost." (antriebverliebt)
Published 05/10/2017 at 16:12
by "Noah - Now with more boost." (antriebverliebt)
Published 05/10/2017 at 16:12
No Tags
STARS: 1
I did some digging, and what I found was so alarming that I will probably do CPO for my next car instead. Here’s a quote: “Customer complaints allege that Carmax does not cover all repairs which are listed to be covered. Allegations include stating that the repair is not covered because the vehicle had not been properly maintained or that the repair is not in the covered scope of the service plan. While these complaints are generally unverifiable, the frequency that the issues are mentioned is significant.”
That’s deeply unsettling, especially given the cost of repairs associated with the kind of car an enthusiast would purchase from CarMax. Aftermarket warranties are always a dubious investment, but it looks like this is a blatant scam. They sell you on the promise of trouble free motoring thanks to a bulletproof warranty and then make money by refusing to cover problems whenever they can. With that in mind, I wouldn’t be surprised if Doug Demuro is on a list of people whose warranty claims are approved without question.
Here’s the link to nearly 800 complaints on the BBB’s CarMax page:
Yikes! A “platinum” warranty (bumper to bumper) for BMW is 2-3 thousand more than the equivalent CarMax offer but you can actually negotiate the price of your car with them, and furthermore, you aren’t running the risk of losing thousands on denied warranty claims.
"Wrong Wheel Drive (41%)" (rduncan5678)
05/10/2017 at 16:36, STARS: 0
All warranties are bullshit. If you can’t do the work yourself or afford to pay someone to do it instead, you dont buy the car. Simple as that! Or at the very least factor in the cost of maintenance into the price of the car. If you have beaucoup money, then have at it.
"ZHP Sparky, the 5th" (e30s2k)
05/10/2017 at 16:38, STARS: 1
Yikes, that is concerning. I never realized they had such bad ratings. Always dreamt that my next car could be a E92 M3 or something through CarMax covered by their warranty…would gladly pay a few grand up front for less fear of crazy unforeseen ownership expenses.
Problem with things like BBB reviews (or even yelp etc.) is that most people only go to complain (or leave rave reviews for restaurants, maybe). So I’m curious what % of the population with warranty claims are truly dissatisfied with the warranty experience. You’re right, no matter what that % is they probably have Doug on a special list for automatic approval of ANY claims he makes, because they know of all the publicity his experience is going to get either way.
"dropthatclutch" (dropthatclutch)
05/10/2017 at 16:42, STARS: 1
These warranties are tough. They sell hundreds of these cars, and they know what it’s going to cost to warranty them. Then they add profit to the warranty plan and sell it.
It’s more like insurance where only the most catastrophic problems make the plan worth it to an individual.
"ToyotaFamily" (robbav35)
05/10/2017 at 16:44, STARS: 1
If this means anything to you, a couple of people who have worked as service advisors have told me that working with the MaxCare plan has generally been easy compared to other companies.
"Camshaft Chris: Skyline/McLaren/Porsche Fanboy" (camshaft-chris)
05/10/2017 at 16:50, STARS: 1
Paging Doug DeMuro. Doug DeMuro to the CarMax Warranty post please.
"Chan - Mid-engine with cabin fever" (superchan7)
05/10/2017 at 17:14, STARS: 1
I think aftermarket warranties In general are a scam.
CarMax may not be as good as a CPO warranty, but probably still better than other aftermarket warranty providers as they operate the actual service stations.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:24, STARS: 0
Warranties do not cover maintenance, that is something you factor into the price of a car no matter what. They are a like an airbag. You hope you never have to use it but knowing it’s there if something unexpected happens is worth having it around to those of us who can afford cars whose high performance tire and brake rotor eating habits can easily outstrip the price of a warranty. Furthermore there is a big difference between budgeting for that and handling a 5 figure engine replacement problem or a series of electronic gremlins that can add up to a similar amount.
Take high performance German cars for example. My next daily will probably be an E9X M3 or a V8 S5. Both are surprisingly reliable overall but if you have an engine failure or chronic electronic gremlins skipping the warranty will be something you deeply regret. Furthermore, for busy adults with with limited free time, working on your own cars is just not an option anymore. It becomes something that you only do for fun. And in addition to that, a German supersedan is infinitely more complex than your Miata with extremely tight packaging, tons of electronics, and requires more specialty tools than you’d expect. Also not everyone has a garage.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:28, STARS: 1
I’m also looking at the E9X M3 and V8 S5, CPO + warranty really isn’t so bad! And yes response bias is a problem with things like BBB, but man those stories still scare me. They’re all over the internet.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:31, STARS: 0
Agreed, I would feel even more uncomfortable with buying a warranty online. Though I think I’m permanently scared off from CarMax now.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:32, STARS: 0
That’s good to know. As someone else pointed out “response bias” is a big issue with voluntary stuff like Yelp and BBB because we never hear from people who didn’t have an issue.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:33, STARS: 0
He may arrive eventually, but certainly not on time in that old Defender. IIRC in his last video he rattled of 3-4 things that it had been to the dealer for already... that weren’t fixed lol.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:37, STARS: 0
Exactly. I don’t think I could justify a warranty on something like a Camry, but the high performance German stuff I’d be interested in would be nice with that peace of mind.
"RPM esq." (rpm3)
05/10/2017 at 17:53, STARS: 1
I’ll let you know how it goes with my CarMax C63 AMG and warranty, but I’ve heard mostly good things, not the least of which is that you can take your car anywhere, such as a dealer, not just to a limited list of approved facilities. And there are exclusions, but they’re set out pretty clearly—such as normal cosmetic wear and tear on the interior.
"My X-type is too a real Jaguar" (TomSlick)
05/10/2017 at 17:53, STARS: 2
Had the CarMax warranty on my X-Type, I always took it straight to the dealer despite the higher co-pay. Never had anything not covered. An important question to ask the dealer you take your car to. “Have you worked with CarMax warranty before”. If they have you should have no problems.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:54, STARS: 0
Hopefully it’ll be fine! I’m sure there are many people who didn’t write a bad review because their experience was decent. Excellent choice BTW...
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 17:55, STARS: 0
ahhhh okay that is a really good point that I didn’t consider. Dealer incompetence.
"My X-type is too a real Jaguar" (TomSlick)
05/10/2017 at 17:58, STARS: 1
My friend has an explorer with MaxCare the covered squirrels chewing through his wiring harness while on a hunting trip. If they covered that.....
"ToyotaFamily" (robbav35)
05/10/2017 at 17:58, STARS: 1
I had their warranty on an Infiniti I bought from them too. Came in handy like twice and I was able to return the warranty after I sold my car.
"My X-type is too a real Jaguar" (TomSlick)
05/10/2017 at 18:03, STARS: 0
Also remember smart dealers have a great incentive to make sure your covered, MaxCare pays their full rate and doesn’t say “What’s the least you can do?” Plus if they make it easy for them you’ll keep coming back. They make more from a MaxCare customer than BMW pays for their own warranty claims.
"RPM esq." (rpm3)
05/10/2017 at 18:03, STARS: 0
My day job also likely ensures that they will not improperly deny claims, or at least not for long, so that helps.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 18:16, STARS: 0
lol that’s a good one. Stupid rodents.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 18:19, STARS: 0
It sounds like I need to to wayyyy more research before pulling the trigger on a warranty, not that I plan on getting serious about a new daily anytime soon.
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 18:19, STARS: 0
you can return warranties!? TIL
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 18:22, STARS: 1
Lawyer? The cynic in me wants to believe that they have an intern compile a dossier on everyone... “RPM made a claim? He’s serious business, unfortunately we have to cover that.”
"JQJ213- Now With An Extra Cylinder!" (jqj213)
05/10/2017 at 22:51, STARS: 4
One thing I always try and remember is that most people won’t post about their positive success stories online. So, all you get is the nasty bad examples
"Noah - Now with more boost." (antriebverliebt)
05/10/2017 at 22:56, STARS: 2
there’s a good psych nerd term for that: “response bias”
"Wrong Wheel Drive (41%)" (rduncan5678)
05/11/2017 at 07:24, STARS: 2
Of course, I understand that people simply cannot (due to space, physical constraints, time) or just do not want to do maintenance/repairs themselves. I get that, it is certainly possible to just go to a trusted shop and have them take care of it. But those costs associated are just the cost of ownership. Tires and brakes like you mention are certainly wear items that would not be covered so you would be out that cost regardless. I look at it as these more complex cars require a finer attention to maintenance history and you cant use the cheapo parts or just ignore problems. I just dont see how a warranty will really save money. I’d gladly own something with a bit more complex systems and expensive parts, but I will just wait until I can afford 100% of the associated costs. I look at a warranty the same way I do insurance, you are just better off stockpiling the money and becoming your own insurance provider (aside from liability of course, that shit is important).
"bryan40oop" (bryan40oop)
05/11/2017 at 10:16, STARS: 3
I’m a service advisor at a ford dealer, the few times I’ve had to use carmax’s maxcare warranty was problem free.
"JQJ213- Now With An Extra Cylinder!" (jqj213)
05/11/2017 at 12:25, STARS: 1
One of my bigger regrets about high school was that I couldn’t find time to take the psych course. Maybe I’ll try and get in one for college.
"Noah - Now with more boost." (antriebverliebt)
05/11/2017 at 12:50, STARS: 0
like someone else pointed out, one thing I didn’t consider is dealer incompetence. So maybe some of these horror stories weren’t just carmax, and not every dealership handles the claims as well as yours? IDK.
"Noah - Now with more boost." (antriebverliebt)
05/11/2017 at 12:52, STARS: 1
The funny thing is that I didn’t feel like I learned all that much in my college psych courses after taking AP in high school. Though I didn’t make it all the way through that major, and just kept it as a minor while pursuing something else. Lots of useful info there for daily life tho, definitely check out psych 101 if you’re interested.
"bryan40oop" (bryan40oop)
05/11/2017 at 17:37, STARS: 0
Eh. No one likes calling in an aftermarket warranty claim. But Maxcare is by far the most competent and flexible. They ok the use of factory parts, most aftermarket warranty companies request aftermarket or used (junkyard) parts. They aren’t nazi’s on labor. It’s pretty cut & dry.
They are by far the only aftermarket warranty worth anything. By far.
"jordang1028" (jordang10228)
05/11/2017 at 18:00, STARS: 0
A friend of mine has had over $38000 in warranty repairs on his Range Rover over the course of the warranty and never had a single issue. He is a Carmax fanboy now. Considering the warranty only cost him a few grand I really cant blame him.
"Rico" (ricorich)
05/12/2017 at 09:13, STARS: 0
It really depends on the car, there are repairs that can easily exceed $4000 in one shot like the air suspension on a RR.
"Demon-Xanth knows how to operate a street." (demon-xanth)
05/12/2017 at 09:32, STARS: 1
Had to have my blend door fixed on my Ram, Carmax did the work, I have a $50 deductible, but if Carmax does the work it’s $50 less.
"Wrong Wheel Drive (41%)" (rduncan5678)
05/12/2017 at 10:55, STARS: 1
But why would you want air suspension? Either way I can’t imagine it would actually cost nearly as much if you sourced the parts yourself and had an independent mechanic do the work. Inflated prices through the dealer are what really make the carmax stuff appear worth it. Even just reading through Doug’s posts make it seem absurd to me to pay that much for some of those repairs. Plus that $50 copay every time is significant as far as I’m concerned.