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HarrytheCarGeek

Warranty Companies' Shady Practices.

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Years ago we did, but not any more. Too much of a pain in my opinion, it's hard enough getting paid from the used car dealerships.

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Some good, mostly bad. When a customer walks in with an extended warranty, we all cringe. You need to inform the customer upfronnt that the warranty company most likely will not pay the entire amount of the repair, if they even authorize it. If you can you should read thru the policy before you even call. Most policies are "mechanical breakdown", which means they will cover a part like a ball joint, but not if it wears out, but only if it breaks.

 

We also tell the customers that they are repsonsible for any remainding balance the warranty does not pay. We never accept what they want to pay us.

 

Also, many warranty companies want to supply their own parts. Last month we had a warranty company that wanted to supply a used power steering rack. I they for real??? We ended up putting a reman unit in the car and the customer had to settle for what the company wanted to give them.

 

If you handle it right, the customer will view the warranty company as the bad guy, and not you.

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Joe, thank you for your excellent reply. I have been knocking heads with them for a while, but they are getting worse at not providing written approval or authorized amounts.

 

I had a bad experience where one of them had approved an amount and then called the customer and had a different settlement with my customer, when it came time to pay they told me that they were only paying me half of the authorized amount and that the customer had agreed to pay the rest, needless to say, the customer then tells me he doesn't have the amount then due. The car had to sit on my lot for six weeks.

 

From there I always asks for written confirmations or approvals, and instructions for submitting invoices. They want to do everything verbally.

Edited by HarrytheCarGeek

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We have seen a few of those so called warranties and it's always a bad experience. They haggle about price and question every repair. The only reason I even do business with them is to help the customer.

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1) Read the customers copy of the contract closely.

2) Advise the customer that from your prior experience the company WILL NOT pay the full amount.

3) Document everything, who you talked to, employee number, time, date, amounts, etc.

4) Get it in writing if at all possible.

 

I have dealt with some that were great, most are not. For instance I had one that would pay for camshaft seals but not the timing belt. I asked if they wanted me to reuse that old belt. "No, and if the belt is not replaced it will void any future mechanical claims" was their answer. Customer was not a happy camper when their portion of the bill exceeded the warranty companies!

I feel it is a necessary evil and somewhat enjoy doing battle with the warranty companies! Gets my aggression out!!!

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Do any of you do warranty company work?

 

I regularly have done work for them, but now I am having a difficult time from them to issue written amounts and authorizations.

 

 

Some are good and some are almost worthless. AUL, GE, GM, Toyota are pretty good. We once had a customer in the shop with some type of extended warranty sold by Chrysler. He needed an AC compressor. It hadn't quit but was on its way to quitting. We were told he would have to go to a Chrysler dealer. He went to the Chrysler dealer but they wouldn't do anything because it was still working. He had to drive the van until the compresssor locked up which resulted in a tow bill. It then took two weeks to get the van fixed.

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Most of these aftermarket warranties are worse than useless and should be illegal. Sooner or later these companies will be investigated and the government will put a stop to these scams.

 

This week I have dealt with two warranty companies. The first is Wheelz and I think they are slightly better than worthless. The other is Mercury and they are wonderful.

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Just had one yesterday it was called "CARS", out of a $426 bill they paid $35. They told me they priced 2 coils on a 2007 BMW 525 for $40.... I told him exactly what I thought of them.

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Just had one yesterday it was called "CARS", out of a $426 bill they paid $35. They told me they priced 2 coils on a 2007 BMW 525 for $40.... I told him exactly what I thought of them.

 

What an absolutely ripoff company. The dealer who sells that warranty should be ashamed.

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What an absolutely ripoff company. The dealer who sells that warranty should be ashamed.

Completely agree, and the customer paid over 2 grand for the "warranty". I am in the wrong business.

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