"SteveLehto" (stevelehto)
12/08/2016 at 09:00 • Filed to: None
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"SteveLehto" (stevelehto)
12/08/2016 at 09:00 • Filed to: None | 7
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One of the things I hear people complain about often is the “dealer warranty.” That is, you bought a used car and the selling dealer threw in its own warranty. Usually something slipshod like “3 months/3K miles - Eng/Trans.” Gee - what could go wrong there?
In the land of warranties, there is the glovebox warranty - the one that comes with a new car and is described in the warranty booklet in the glovebox. Hence, the name.
Then there are third-party warranties (and service contracts) where someone other than the seller or manufacturer will (may) fix your car if/when it breaks down.
And finally, I often hear about the vague warranty given by the seller, often evidenced by nothing more than a couple of words and word fragments written on the Buyer’s Guide. What are the terms and conditions of the “3-mo’s/3K mi - Eng./Trans” warranty? Your guess is as good as mine.
But neither of us will guess as good as the dealer - who is the one who will be telling you what is really covered by that warranty. And that is usually what he/she feels like fixing before he/she gets tired of your whining.
So this week’s podcast explains this and more. For one thing, there is one bright side to these warranties which I suspect the dealers don’t want me to tell you (it prohibits them from selling you the car as-is.) So, here is the audio:
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And the video:
Follow me on Twitter: !!!error: Indecipherable SUB-paragraph formatting!!!
Hear my podcast on iTunes: !!!error: Indecipherable SUB-paragraph formatting!!!
Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and !!!error: Indecipherable SUB-paragraph formatting!!! He wrote !!!error: Indecipherable SUB-paragraph formatting!!! and !!!error: Indecipherable SUB-paragraph formatting!!! .
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.
EL_ULY
> SteveLehto
12/08/2016 at 09:26 |
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we had 3 car in this week so far with quotes between 3-6 grand in work and not one needed to send an adjuster to approve the work. Same thing has happened the last 3 year around this time. Is December the time to submit non factory extended warranty claims? The claim checks get sent out pretty quickly as well.
Aaron M - MasoFiST
> SteveLehto
12/08/2016 at 09:28 |
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In Massachusetts, dealers are required to warrant all used cars against defects for 30, 60, or 90 days depending on mileage. What shifty dealers here do, though, is then advertise this state-mandated warranty *as if it was a value-added feature*. The warranty may be useful, as it’s legally required...but it isn’t worth any extra money.
OPPOsaurus WRX
> SteveLehto
12/08/2016 at 09:43 |
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The newborn in the room next to us is Hudson. I really want to ask if it’s after the car but I don’t want to bother them. I’ve walked around looking for a Tucker but there is none
ateamfan42
> SteveLehto
12/08/2016 at 10:12 |
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Then there are third-party warranties (and service contracts) where
someone other than the seller or manufacturer will (may) fix your car
if/when it breaks down.
Great piece as usual, Steve.
I think you’ve discussed third-party warranties before, but I think it is worth highlighting that the “may fix” scenario is much more likely than the “will fix” scenario for many of these warranties. Like insurance companies, these warranty companies are in the business of collecting premiums, not paying claims. They have many techniques for weaseling out of the coverage you believe you are buying with the warranty/service plan, and can be extremely frustrating. I had some horrific experiences with the one I had years ago.
I suggest to most people to take the money they’d spend on one of these warranties, and just put it in a savings account. Then you have some cash handy if something breaks, and you don’t have to deal with jumping through insane hoops to just attempt to get a repair covered.
jimz
> ateamfan42
12/08/2016 at 10:29 |
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which makes me wonder at what point do we just give up and make these companies call their “warranties” for what they are, which is insurance policies.
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jimz
> SteveLehto
12/08/2016 at 10:29 |
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Don’t forget Jim’s Fish, Chips, and Insurance as recommended by Al Bundy.
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SteveLehto
> ateamfan42
12/08/2016 at 10:37 |
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And that is quite true. They have no incentive to pay your claim and anything they pay is a loss. So they will do everything they can to weasel out of paying.
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ateamfan42
> jimz
12/08/2016 at 10:55 |
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They call them warranties, because it is good marketing.
Many people like the fact that a new car comes with the peace of mind of a warranty. So used car “warranties” were invented to make used car purchases appealing to those folks. If I can buy a used car with the same peace of mind that any problems will be fixed for free as I’d get with a new car, that’s great! Only through experience do we learn that the peace of mind being marketed is worthless and the owner will still be on the hook for many of the problems encountered with the vehicle.