Dealing with Extended Warranty Companies

[Joe Marconi]

People often come in with an extended warranty contract to see if we honor the contract. We always respond the same way, “Yes we do, but what ever the warranty company does not cover, you will have to pay the difference. Plus we need to find out if the warranty company covers what’s wrong with your car”.

 

Too often I see the same puzzled look on their face and hear the same response: “I was told that this contract covers everything and all I have to pay is the deductible”.

 

We know the real truth, don’t we? I don’t know how you handle this issue, but I tell the customer upfront that if it is a covered repair and my invoice is more that what the your warranty company is willing to pay me, you will need to pay the difference.

 

I am successful with this upfront approach 95% of the time.

 

I do not want someone at a warranty company sitting behind a desk telling me how much to charge or tell me that they can get a used steering rack from a junkyard half way across the country.

 

How do you handle extended warranties?

[xrac]

People often come in with an extended warranty contract to see if we honor the contract. We always respond the same way, “Yes we do, but what ever the warranty company does not cover, you will have to pay the difference. Plus we need to find out if the warranty company covers what’s wrong with your car”.

 

Too often I see the same puzzled look on their face and hear the same response: “I was told that this contract covers everything and all I have to pay is the deductible”.

 

We know the real truth, don’t we? I don’t know how you handle this issue, but I tell the customer upfront that if it is a covered repair and my invoice is more that what the your warranty company is willing to pay me, you will need to pay the difference.

 

I am successful with this upfront approach 95% of the time.

 

I do not want someone at a warranty company sitting behind a desk telling me how much to charge or tell me that they can get a used steering rack from a junkyard half way across the country.

 

How do you handle extended warranties?

 

We do the same thing that you are doing and it works o.k. Some of the warranty companies are great. Think AUL or GE Capital. Some are almost worthless. Think Penn Warranty. This past week we dealt with one called Royal Warranty Services. We had a car with a bad fuel pump. They told us to do nothing untilwe heard from them. It took them 2 1/2 days to send out an adjuster although they then did do an approval. This is the first time in ten years we have had an adjuster. The good warranty companies always have us fix it on the spot. The consumer paid $3,300 for this warranty.

 

http://www.ripoffreport.com/Auto-Warranty/...royal-fd78c.htm

Edited November 1, 2009 by xrac

[Joe Marconi]

$3,300! WOW. We should get into the insurance business. Or, maybe find a way to sell a maintenance program to our customers. We dealt with Royal too, not a happy experience.

[xrac]

$3,300! WOW. We should get into the insurance business. Or, maybe find a way to sell a maintenance program to our customers. We dealt with Royal too, not a happy experience.

 

I am license to sell insurance and have some experience. I have thought about finding a good warranty company that would let me sell their extended warranties. However, the problem would be how would people pay for it. Most people can't come up with the money independently and are only able to do it when they purchase a vehicle because it is all rolled into the loan.

[autoguy]

I am license to sell insurance and have some experience. I have thought about finding a good warranty company that would let me sell their extended warranties. However, the problem would be how would people pay for it. Most people can't come up with the money independently and are only able to do it when they purchase a vehicle because it is all rolled into the loan.

 

That's a good point. When it's rolled into the loan, they don't feel it.